Managerial Accounting Ch. 1

Front 1

Administrative Costs

Back 1

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

Front 2

Budget

Back 2

a detailed plan for the future, usually expressed in formal quantitative terms

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 individually

Front 4

Control

Back 4

the process of instituting procedures and then obtaining feedback to ensure that all parts of the organization are functioning effectively and moving toward oberall company goals

Front 5

controller

Back 5

the member of the top management team who is responsible for providing relevant and timely data to managers and for preparing finacial statements for external users. The Controlller reports to the CFO

Front 6

Controlling

Back 6

actions taken to help ensure that the plan is being followed and is appropriately modified as circumstances change

Front 7

Conversion cost

Back 7

direct labor cost plus manufacturing overhead cost

Front 8

Cost behavior

Back 8

the way in which a cost reacts to changes in the level of activity

Front 9

cost object

Back 9

anything for which cost data are desired

Front 10

cost of goods manufactured

Back 10

the manufacturing costs associated with the goods that were finished during the period

Front 11

Differential cost

Back 11

a difference in cost between two alternatives

Front 12

differential revenue

Back 12

the difference in revenue between two alternatives

Front 13

Direct cost

Back 13

a cost that can be easily and conveniently traced to a specified cost object

Front 14

directing and motivating

Back 14

Mobilizing people to carry out plans and run routine operations

Front 15

direct labor

Back 15

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

Front 16

direct materials

Back 16

materials that become an integral part of a finished product and whose costs can be conveniently traced to it

Front 17

feedback

Back 17

accounting and other reports that help managers monitor performance and focus on problems and/or opportunities that migh otherwise go unnoticed

Front 18

Finacial accounting

Back 18

the phase of accounting concerned with providing information to stockholders, creditors, and other outside organization

Front 19

Finished goods

Back 19

units of product that have been completed but not yet sold to customers

Front 20

Fixed cost

Back 20

a cost that remains constant, in total, regardless of changes in the level of activity within the relevant range

Front 21

Incremental cost

Back 21

an increase in cost between two alternatives

Front 22

Indirect cost

Back 22

a cost that cannot be easily and conveniently traced to a specified cost object

Front 23

indirect labor

Back 23

the labor costs of janitors, supervisors, material handlers, and other factory workers that cannot be conveniently traced to particular products

Front 24

Indirect materials

Back 24

small items of material such as glue and nails that may be an intergral part of a finished product, but whose cost cannot be easily or conveniently traced to it

Front 25

invetoriable cost

Back 25

synonym for product cost

Front 26

managerial accounting

Back 26

the phase of accounting concerned with providing information to mamagers for use within th eorganization

Front 27

manufacturing overhead

Back 27

all manufacturing costs exept direct materials and direct labor

Front 28

opportunity cost

Back 28

the potential benefit that is given up when one alternative is selected ober another

Front 29

performance report

Back 29

a detailed report comparing budgeted data to actual data

Front 30

period costs

Back 30

costs that are taken directly to the income statement as expenses in the period in which they are incurred or accrued

Front 31

planning

Back 31

selecting a course of action aand specifing how the action will be implemented

Front 32

planning and control cycle

Back 32

the flow of management activities through planning, directing and motivating, and controlling

Front 33

Prim cost

Back 33

direct materials cost plus direc labor cost

Front 34

Product costs

Back 34

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

Front 35

Raw materials

Back 35

any materials that go into the final product

Front 36

relevant range

Back 36

the range of activity withn which assumptions about variable and fixed cost behavior are balid

Front 37

Schedule of cost of goods manufactured

Back 37

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

Front 38

segment

Back 38

andy part of an organization that can be evaluated independently of other parts and about which the manager seeks finacial data

Front 39

selling costs

Back 39

all costs that are incurred to secure customer orders and get the finished product or service into the hands of the customer

Front 40

sunk cost

Back 40

a cost that has already been incurred and that cannot be changed by any decision made now or inn the future

Front 41

Variable cost

Back 41

a cost that varies, in total, in direct proportion to changes in the level of activity. A bariable cost is constat per unit

Front 42

work in process

Back 42

units of product that are only partially complete