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65 Cards in this Set

  • Front
  • Back
Which type of accounting is the branch of accounting that develops information for external users?
Financial Accounting
The aspect of accounting that often involves a special study to assess possible courses of action and recommends the best course to follow is answered by which type of questions?
Problem Solving Questions
What are the policies to protect and make the most efficient use of an organization's assets?
Internal Controls
Weighing estimated costs against probable benefits is called:
Cost Benefit Balance
What types of decisions are part of the management decision making process?
Planning and Controlling Decisions
The quantitive expression of a plan of action is a:
Management by exception means:
Concentrating on areas that deviate from the plan and ignoring areas running smoothly
Which of the following is not a stage in the product life cycle?
Customer Focus

-mature, development, phase-out
Which of the following is not part of the value chain of business functions?
Performance Reports

-marketing, distribution, R&D
Those directly involved with making and selling the organization's goods or services are:
Line Managers
Initiatives that minimize costs by maximizing quality is:
Total Quality Management
Which of the following is not part of the Standards of Ethical Conduct?

-competence, fonfidentiality, integrity
Any output measure that causes costs is a:
Cost Driver
Which type of cost changes in direct proportion to the changes in cost driver levels?
Variable Costs
Which type of cost is variable per unit?
Fixed Costs
Which type of cost is fixed per unit?
Variable Costs
The study of the effects of output volume on revenue, expenses and net income is:
CVP Analysis
the level of sales at which revenue equals expenses and net income is zero is called:
Break Even Point
Sales - Variable Costs =
Contribution Margin
An organization's ratio of fixed to variable costs is called:
Operating Leverage
Which costs change at intervals of activity because the resources and costs become indivisible?
Step Costs
What type of costs have no obvious relationship to levels of capacity or output activity?
Discretionary Fixed Costs
The process of measuring and identifying appropriate cost drivers & their effect on making product.
Activity Analysis
Which method uses statistics to fit a cost function to all the data?
Least Squares Regression
Which method to approximate cost functions selects a plausible cost driver and classifies each account as fixed or variable costs?
Account Analysis
Tracing or allocating costs to one or more cost objectives such as activities or departments is called:
Cost Assignment
Costs for which we can identify no relationship to a cost objective are called:
Unallocated Costs
Costs identified with goods produced or purchased for resale are called:
Product Costs
A group of individual costs that a company allocates to cost objectives using a single cost driver:
Cost Pool
The continuous process of comparing products and services against industry standards is:
Costs that a company can eliminate without affecting the product's value to a customer are:
Non-Value Added costs
Relevant information is:
The prediced future costs and revenues that will differ among alternatives
Avoidable costs are:
Costs that will NOT continue if an ongoing operation is changed or deleted
Costs of facilities and services shared by users are:
Common Costs
The item that restricts or constrains the production or sale of a product or service is:
Limiting Factor
Perfect Competition is:
A market in which a firm can sell as much of a product as it can produce at a single market price.
The effect of price changes on sales volume is:
Price Elasticity
Markup is the:
Amount by which price exceeds cost
The difference in total cost or revenue between two alternatives is:
Differential Cost
Opportunity costs is:
The maximum available contribution to profit forgone by using limited resources for a purpose.
Any costs beyond the split-off point are
Separable Costs
The juncture of manufacturing where joint products become separately identifiable is:
Split-Off Point
A cost that has already been incurred and is irrelevant to the decision-making process is a:
Sunk Cost
A costing approach that considers all indirect manufacturing costs to be product costs is the:
Absorption Approach
The method of internal reporting that emphasizes the distinction between variable and fixed costs:
Contribution Approach
A mathematical model of the master budget that can react to any set of assumptions is a:
Financial Planning Model
A variance that occurs when actual costs are less than budgeted costs is a:
Favorable Variance
The diferences between master budget amounts and the amounts in the flexible budget are:
Activity Level Variances
The degree to which a goal, objective or target is met is called:
A carefully determined cost per unit that should be attained is called a:
Standard Cost
Levels of performance that managers can achieve by realiztic levels of effort are called:
Currently Attainable Standards
The difference between actual input prices and standard input prices times the actual quantity used:
Price Variance
The diference between the actual variable overhead and the amount budgeted for the actual level of cost driver activity:
Variable-Overhead Spending Variance
A responsibility center in which managers are responsible for costs only is a:
Cost Center
Attributes that managers must achieve in order to drive the organization toward its goals:
Key Success Factors
A condition where employees make decisions that help meet the organization's goals:
Goal Congruence
Any cost that management of a responsibility center cannot affect in a given time span:
Uncontrollable Cost
Measures that drive an organization to meet its goals are called:
Key Performance Indicators
The effort to ensure goods and services perform to customer expectations:
Quality Control
The delegation of freedom to make decisions is called:
A measure of income or profit divided by the investment required to obtain that profit:
Return on Investment - ROI
After tax opertaint income less a capital charge is called:
Residual Income
The original costs of an asset less accumulated depreciation is called:
Net Book Value
The price that one segment charges to another segment of the same organization for a product:
Transfer Price
The joint formualtion by a manager and his or her superior of a set of goals and plans for the forthcoming period:
Management by Objectives