Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
28 Cards in this Set
- Front
- Back
|
Budget
|
Formal statement of future plans, usually expressed in monetary terms
|
|
|
Contribution Margin
|
Sales revenue - Variable Costs
|
|
|
Contribution Margin Ratio
|
Contribution Margin / Sales Price
|
|
|
Direct Cost
|
A Cost that is traceable to a cost object
|
|
|
Factory Overhead
|
Factory activities supporting the production process that are not direct material or direct labor
|
|
|
Finished Goods Inventory
|
Inventory which consists of completed products ready for sale
|
|
|
something
|
Planning budget based on a single predicted amount of sales or production volume
|
|
|
something
|
Report based on predicted amount of revenues and expense that correspond to the actual levels of output
|
|
|
Fixed Cost
|
Cost that does not change with changes in volume of activity
|
|
|
Goods in Process Inventory
|
Inventory which consists of products in the process of being manufactured but not yet complete
|
|
|
Internal Rate of Return
|
Rate that yields a net present value of 0 for an investment
|
|
|
Job Order Costing
|
Cost Accounting system to determine the cost of producing each job or job lot
|
|
|
Management by Exception ???
|
Management process to focus on significant variances and give less attention to areas where performance is close to the standard
|
|
|
Managerial Accounting
|
Area of Accounting aimed mainly at serving the decision making needs of internal users
|
|
|
Master Budget
|
A formal, comprehensive plan for a company's future
|
|
|
Mixed Cost
|
Cost that behaves like a combination of fixed and variable costs
|
|
|
Net present value
|
Dollar estimate of an asset's value that is used to evaluate the acceptability of an investment; computed by discounting future cash flows from the investment at a satisfactory rate and then subtracting the initial cost of the investment
|
|
|
Period Costs
|
expenditures identified more with a time period than with finished product costs; includes selling and administrative cots; are reported directly on the income statement
|
|
|
Predetermined Overhead Allocation Rate
|
rate established prior to the beginning of a period that relates estimated overhead to another variable such as estimated direct labor, and is used to assign overhead to production
|
|
|
Process Costing
|
System of assigning direct materials, direct labor, and overhead to specific processes; products and services are similar in nature
|
|
|
Product Costs ???
|
costs that are capitalized as inventory because they produce benefits expected to have future value; include direct materials, direct labor and overhead; costs that are NOT expensed immediately
|
|
|
Standard Costs
|
preset costs for delivering a product or service under normal conditions; used by management to assess the reasonableness of actual incurred for producing the product or service
|
|
|
Variable cost
|
Cost that changes in proportion to changes in the activity output volume
|
|
|
Contribution Margin Unit
|
(Sales - VC) / Units
|
|
|
Contribution Margin Ratio
|
CM/Sales Price
|
|
|
BE$
|
FC/CMration
|
|
|
BE units
|
FC/CMunit
|
|
|
Before Tax income
|
target net income / 1-tax rate
|
