Cps Management Chapter 8

Front 1

A financial statement that shows the financial position of an entity at a specific time and is formally called the statement of financial position. The balance sheet lists all the assets, liabilities, and owners' equity of an entity. (8)

Back 1

Balance sheet

Front 2

The book value, or carrying value, of the asset is equal to the original cost of an operational asset less the accumulated depreciation related to that asset. (8)

Back 2

Book value

Front 3

The point where total revenues are equal to total expenses and net income is equal to zero. (8)

Back 3

Breakeven point

Front 4

A detailed plan that shows proposed acquisitions of financial resources and uses of financial resources during a period of time. (8)

Back 4

Budget

Front 5

The carrying value, or book value, of the asset is equal to the original cost of an operational asset less the accumulated depreciation related to that asset. (8)

Back 5

Carrying value

Front 6

Includes all changes in owners' equity during a period except those that result from investments by or distributions to owners. (8)

Back 6

Comprehensive income

Front 7

Shown as a deduction from its related asset account on the balance sheet. (8)

Back 7

Contra-asset account

Front 8

In managerial accounting, it equals sales minue variable costs. (8)

Back 8

Contribution margin

Front 9

The cost of merchandise sold to customers. (8)

Back 9

Cost of goods sold

Front 10

The systematick and rational allocation of the original cost of an asset over its expected useful life. (8)

Back 10

Depreciation

Front 11

All labor performed by personnel directly involved in production. (8)

Back 11

Direct labor

Front 12

Raw materials that are readily identified with an individual product. (8)

Back 12

Direct materials

Front 13

Is reported on the income statement and is determined by dividing net income after taxes by the average number of shares of common stock held by owners during the period. (8)

Back 13

Earnings per share

Front 14

Remain constant in total despite changes in the volume of output. The per unit amount of a fixed cost varies as the level of activity changes. (8)

Back 14

Fixed costs

Front 15

The predication of a value of a variable in the future that may be based on past values of the variable, values of related variables, or expert judgment. Forecasts are needed in business to plan for the future development of the company. (8)

Back 15

Forecasting

Front 16

Revenues that a business may earn that are not part of the normal operations of the business. (9)

Back 16

Gains

Front 17

Sales of goods minus cost of goods sold. (9)

Back 17

Gross margin (gross profit)

Front 18

A financial report that summarizes the operations of the business resulting in revenues, expenses, gains, and losses, and shows the increase or decrease in owners' equity resulting from the operation of the business overa period of time (the accounting period). (9)

Back 18

Income statement

Front 19

Used by firms with production that is easily divided into separate projects or batches. (9)

Back 19

Job order costing

Front 20

Expenses that a business may incur that do not result from normal operations of the business. (9)

Back 20

Losses

Front 21

Contains all other costs of production that are not in direct labor or direct materials. (9)

Back 21

Manufacturing overhead

Front 22

Vary with level of activity but by less than a proportionate amount. (9)

Back 22

Mixed costs

Front 23

Used to cost products in companies that employ a continuous manufacturing process to produce a homogeneous product. (9)

Back 23

Process costing

Front 24

States that revenue is usually recognized only after exchange has taken place or a service has been rendered. (9)

Back 24

Revenue realization principle

Front 25

A predetermined estimate of the cost per unit for materials, labor, and manufacturing overhead; the cost that should be incurred to product a product or perform an operation efficiently. (9)

Back 25

Standard cost

Front 26

Explains the differences between the beginning and ending balances of cash (including cash equivalents). (9)

Back 26

Statement of cash flows

Front 27

Shows the changes in the capital account from one period to another in a sole proprietorship or partnership. (9)

Back 27

Statement of changes in capital

Front 28

Shows the changes in retained earnings from one period to another. (9)

Back 28

Statement of retained earnings

Front 29

Vary in total directly with the level of output. As production increases, the total amount of a variable cost will increase proportionately while the per unit cost will remain the same. (9)

Back 29

Variable costs

Front 30

The difference between the standard cost and the actual cost. (9)

Back 30

Variance