Managerial Chapter 1

Front 1

3 major activities that managers carry out?

Back 1

1.Planning
2. Directing and Motivating
3. Controlling

Front 2

Planning

Back 2

Establishing a basic strategy

Front 3

Directing and Motivating

Back 3

Mobilizing people to carry out plans and run routine operations.

Front 4

Controlling

Back 4

ensuring that the plan is actually carried out and is appropriately modified as circumstances change.

Front 5

when making a new planning decision, management must

Back 5

balance the potential benefits against the costs, and demands.

Front 6

Controller

Back 6

manager in charge of accounting department.

Front 7

Budgets are typically prepared____. And represent managers plans in ____.

Back 7

1. Annually
2.Quantitative terms

Front 8

Part of the managers job that deals with the routine, here and now.

Back 8

Directing

Front 9

The key to effective control is...

Back 9

Feedback

Front 10

Performance reports

Back 10

suggest where operations are not proceeding as planned and where some parts of the organization may require additional attention.

Front 11

Planning and Control cycle

Back 11

the smooth flow of management activities from planning through directing and motivating, controlling, and back to planning.

Front 12

Managerial Accounting

Back 12

Concerned with providing information to managers for use within the organizations.

Front 13

Financial Accounting

Back 13

concerned with providing information to stockholders, creditors and others who are outside the organization.

Front 14

Emphasis on the Future

Managerial or Financial

Back 14

Managerial

Front 15

Emphasizes objectivity and verifiability

Managerial or Financial?

Back 15

Financial

Front 16

More Emphasis on Precision?

Back 16

Financial Accounting

Front 17

Does managerial Accounting have to follow GAAP?

Back 17

NO

Front 18

3 Manufacturing cost Categories

Back 18

1.Direct Materials
2. Direct Labor
3. Manufacturing Overhead

Front 19

Direct Materials

Back 19

Those that become and integral part of the finished product and whose costs can be conveniently traced to the finished product.

Front 20

Indirect Materials

Back 20

Small items of material such as glue and nails that may be an integral part of a finished product,but whose cost cannot be easily traced to it.

Front 21

Direct Labor (Touch Labor)

Back 21

Labor costs that can be easily traced to and individual unit of product.

Front 22

Manufacturing Overhead

Back 22

All other manufacturing costs other than Direct Materials and Direct Labor. Typically around 16%.

Front 23

Examples of Manufacturing overhead...

Back 23

1.Indirect Labor
2. Maintenance
3.Indirect Materials
4. Heat and Lighting
5. Property Taxes
6. Insurance

Front 24

Only Costs associated with____ are included in manufacturing overhead.

Back 24

operating the factory.

Front 25

Non-Manufacturing costs are divided into____.

Back 25

1. Selling Costs
2. Administrative Costs

Front 26

Selling Costs

Back 26

All costs that are incurred to secure customer orders and get the finished product to the customer.

Front 27

Examples of Selling Costs

Back 27

advertising, shipping, sales travel, sales commissions, sales salaries, cost of finished goods warehousing.

Front 28

Administrative Costs

Back 28

all costs associated with the general management of an organization rather than from manufacturing or selling.

Front 29

Examples of Administrative Costs

Back 29

executive compensation, general accounting, secretarial, public relations.

Front 30

Product Costs

Back 30

All costs involved in acquiring or making a product

Front 31

Prime Cost

Back 31

Sum of Direct Materials cost and direct labor cost

Front 32

Conversion Cost

Back 32

sum of direct labor and manufacturing overhead

Front 33

Cost behavior

Back 33

how cost reacts to changes in the level of activity

Front 34

Variable cost

Back 34

a cost that varies in direct proportion to changes in the level of activity

Front 35

Fixed Cost

Back 35

cost that remains constant

Front 36

Relevant Range

Back 36

the range of activity within which the assumptions about variable and fixed costs are valid

Front 37

Differential Cost/Incremental Cost

Back 37

Difference in cost between 2 alternatives

Front 38

Differential Revenue

Back 38

Difference in Revenue from one alternative to another

Front 39

Unit Product Cost

Back 39

Total Manufacturing Cost
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Total Units produced

Front 40

job cost sheet

Back 40

a form prepared for a job that records the materials labor and overhead costs.

Front 41

Time Ticket

Back 41

summary of the employees acivities throughout the day

Front 42

Predetermined overhead rate

Back 42

Estimated overhead total
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Total estimated allocation base