Intro. To Managerial Accounting - Brewer 4E, Chpt 1

Front 1

Administrative Costs

Back 1

All executive, organizational, and clerical costs associated with the general management of an organization rather than with the manufacturing or selling. (p 35)

Front 2

Budget

Back 2

A detailed plan for the future, usually expressed in formal quantitative terms. (p 29)

Front 3

Common Cost

Back 3

A cost that is incurred to support a number of cost objects but that cannot be traced to them all individually. (p 49)

Front 4

Control

Back 4

The process of instituting procedures and obtaining feedback to ensure that all parts of the oganization are functioning effectively and moving toward overall company goals. (p29)

Front 5

Controlling

Back 5

Ensuring that th plan is actually carried out and is appropriately modified as circumstances change. (p 28)

Front 6

Conversion Cost

Back 6

Direct labor cost plus manufacturing overhead cost. (p 36)

Front 7

Cost behavior

Back 7

The way in which a cost reacts to changes in the level of an activity. (p 45)

Front 8

Cost object

Back 8

Anything for which cost data are desired. (p 49)

Front 9

Cost of Goods Manufactured

Back 9

The manufacturing costs associated with the goods that were finished during the period. (p 40)

Front 10

Differential cost

Back 10

A difference in cost between any two alternatives. Also known as Incremental Cost. (p 49)

Front 11

Differential Revenue

Back 11

A difference in revenue between two alternatives. (p 49)

Front 12

Direct cost

Back 12

A cost that can e easily and conveniently traced to a specified cost object. (p 49)

Front 13

Direct labor

Back 13

Labor costs that can be easily traced to individual units of product. Also called touch labor. (p 34)

Front 14

Direct Materials

Back 14

Materials that become an intergral part of a finished product and whose costs can be conveniently traced to it.

Front 15

Directing and Motivating

Back 15

Mobilizing people to carry out plans and run routine operations. (p 28)

Front 16

Feedback

Back 16

Accounting and other reports that help managers monitor performance and focus on prolems and/or opportuities that might otherwise go unnoticed. (p 29)

Front 17

Financial Accounting

Back 17

The phase of accounting concerned with providing information to stockholders, credditors, and others outside the organization. (p 28)

Front 18

Finished goods

Back 18

Units of prduct that have been completed buy have not yet been sold to customers. (p 38)

Front 19

Fixed cost

Back 19

A cost that remains constant, in total, regardless of changs in the level of activity within relevant range. If a fixed cost is expressed on a per unit bsis, it varies inversely with the level of activity. (p 46)

Front 20

Incremental cost

Back 20

An increase in cost between two alternatives. (Differential cost) (p 49)

Front 21

Indirect cost

Back 21

A cost that cannot be easily and conveniently traced to a specified cost obeject. (p 49)

Front 22

Indirect labor

Back 22

The labor costs of janitors, supervisors, materials handlers, and other factory workers that cannot be convniently traced to particular products. (p 34)

Front 23

Indirect materials

Back 23

Small items of material such as glue and nails that may be an integral part of a finished product butwhose cost cannot be easily or conveniently traced to it. (p 34)

Front 24

Inventoriable costs

Back 24

All costs that are involved in acquiring or making a product. In the case of manufactured goods, these costs consist of direct materials, direct labor, and manufacturing overhead. (p 35)

Front 25

Managerial Accounting

Back 25

The phase of accounting concerned with providing information to managers for use in planning and controling operations and in decision making. (p 28)

Front 26

Manufacturing overhead

Back 26

All manufacturing costs except direct materials and direct labor. (p 34)

Front 27

Oportunity cost

Back 27

A potential benefit that is given up when one alernative is selected over another. (p 51)

Front 28

Performance Report

Back 28

A detailed report comparig budgeted data to actual data. (p 29)

Front 29

Period costs

Back 29

Costs that are taken directly to the income statement as expenses in the period in which they are incurred or accrued. (p 36)

Front 30

Planning

Back 30

Selecting a course of action and specifying how the action will be implemented. (p 28)

Front 31

Planning and Control cycle

Back 31

The flow of management avctivities through planning, directing and motivating, and controlling, and then back to planning again. (p 30)

Front 32

Prime costs

Back 32

Direct materials cost plus direct labor cost. (p 36)

Front 33

Product costs

Back 33

Alll cots that are involved in acquiring or making a product. In the case of manufactured goods, these costs consist of direct materials, direct labor, and manufacturing overhead. (p 35)

Front 34

Raw materials

Back 34

Materials that are used to make a product. (p 33)

Front 35

Relevant range

Back 35

The range of activity within which assumptions about variable and fixed cost behavior are valid. (p 48)

Front 36

Schedule of cost of goods manufactured

Back 36

A schedule showing the direct materials, direct labor, and manufacturing overhead costs incurred during a period and the portion of those costs that are assigned to Work in Process and Finished Goods. (p 41)

Front 37

Segment

Back 37

Any part of an organization that can be evaluated indpendently of other parts and about which the manager seeks financial data. (p 32)

Front 38

Selling costs

Back 38

All costs that are incurred to secure customer orders and get the finished product or services into the hands of the customer. (p 35)

Front 39

Variable cost

Back 39

A cost that varies, in total, in direct proortion to changes in the level of activity. (p 45)

Front 40

Work in process

Back 40

Units of product that are only partially complete and will require further work before they are ready for sale to a customer. (p 38)

Front 41

Basic Equation for Inventory Accounts

Back 41

Beg Bal + Adds to Inv
= End Bal + w/Drawls from Inv

Front 42

COGS in a Merchandising company

Back 42

Beg Inv + Purch
= End Inv + COGS

OR

COGS =
Beg Inv + Purch - End Inv

Front 43

COGS in a Manufacturing Company

Back 43

Beg Fin Inv + COG manf'd
= End Fin Inv + COGS

OR

COGS =
Beg Fin Inv + COG manf'd - End Fin Inv

Front 44

What goes on the balance sheet?

Back 44

Raw Materials Inventory + Work in Progress +
Finished Goods Inventory

Front 45

What goes on the income statement?

Back 45

COGS + Selling/Admin expenses

Front 46

Basic Equation for Inventory Accounts

Back 46

Beg Bal + Adds to Inv
= End Bal + w/Drawls from Inv

Front 47

Sunk cost

Back 47

A cost that has already been incurred and that cannot be changed by any decision make now or in the future. (p 51)