Acct. 203 Final

Front 1

In management accounting what is: planning

Back 1

Choosing goals and deciding how to achieve them

Front 2

In management accounting what is: budget

Back 2

Quantitive expression of a plan that helps managers coordinate and implement a plan.

Front 3

In management accounting what is: controlling

Back 3

Evaluating the results of business operations by comparing the actual results to the plan.

Front 4

In management accounting what is: cost-benifit analysis

Back 4

weighing cost against benefits to help make decisions

Front 5

In management accounting what is: service company

Back 5

a company that sells intangible goods rather than tangibles

Front 6

In management accounting what is: merchandising company

Back 6

a company that resells products that were previously bought from suppliers

Front 7

In management accounting what is: manufacturing company

Back 7

a company that uses labor, plant, and equipment to convert raw materials into new finished products.

Front 8

In management accounting what are the three kinds of inventory that manufacturing companies use?

Back 8

1. Materials inventory
2. Work in progress inventory
3. Finished goods inventory

Front 9

In management accounting what is: materials inventory

Back 9

raw materials used for manufacturing

Front 10

In management accounting what is: Work in progress inventory

Back 10

Goods that are part way through the manufacturing process but not yet complete

Front 11

In management accounting what is: Finished goods inventory

Back 11

completed goods that have not yet been sold

Front 12

In management accounting what is: value chain

Back 12

Activities that add value to a firms's products and services: R&D, design, production or purchases, marketing, distribution cost, customer service, etc...

Front 13

In management accounting what is: Research and Development

Back 13

researching and developing new or improved products or services, or the processes for producing them

Front 14

In management accounting what is: production or purchases

Back 14

Resources used to produce a product or a service, or to purchase finished merchandise.

Front 15

In management accounting what is: marketing

Back 15

promotion of products or services

Front 16

In management accounting what is: distrubution

Back 16

delivery of products or services to customers

Front 17

In management accounting what is: customer service

Back 17

support provided for customers after the sale

Front 18

In management accounting what is: cost object

Back 18

anything for which management wants a separate measurement of cost.

Front 19

In management accounting what is: Examples of cost objects?

Back 19

individual products, departments, alternative marketing strategies, geographic segments, etc...

Front 20

In management accounting what is: direct cost

Back 20

a cost that can be specifically traced to a cost object

Front 21

In management accounting what is: indirect cost

Back 21

a cost that cannot be specifically traced to a cost object

Front 22

In management accounting what is: full product costs

Back 22

the costs of all resources used thoughout the value chain for a product

Front 23

In management accounting what is: inventoriable product costs

Back 23

all costs of a product that GAAP requires companies to treat as an asset for external financial reporting. These costs are not expenses until the product is sold.

Front 24

In management accounting what is: period costs

Back 24

operating costs that are expensed in the period in which they are incurred

Front 25

In management accounting what is: direct materials

Back 25

Materials that become a physical part of the product being manufactured and are easily traceable to the product.

Front 26

In management accounting what is: direct labor

Back 26

labor that is directly traceable to the product. These are the physical constructors of the product

Front 27

In management accounting what is: manufacturing overhead

Back 27

all manufacturing costs that are not direct labor or materials. also: Factory overhead, indirect manufacturing costs

Front 28

In management accounting what is: indirect materials

Back 28

materials whose cost cannot be directly traced to the manufacturing of the product. Part of manufacturing overhead

Front 29

In management accounting what is: indirect labor

Back 29

Labor costs that are difficult to trace to specific products. Part of manufacturing overhead

Front 30

In management accounting what is: cost of goods manufactured

Back 30

the manufacturing (or plant related) costs of the goods that finished the production process this period

Front 31

In management accounting what is: ERP

Back 31

Enterprise Resource Planning systems

Front 32

In management accounting what is: supply-chain management

Back 32

exchange of information between suppliers and customers to reduce costs, improve quality, speed, and delivery from supplier to producer, to customer

Front 33

In management accounting what is: JIT

Back 33

Just in time philosophy: a system in which a company produces as close as possible to the time there is demand for the product.

Front 34

In management accounting what is: thoughput time

Back 34

the time it takes between buying raw materials and creating a finished product

Front 35

In management accounting what is: TQM

Back 35

Total quality management:
a philosophy that pushes for customer satisfaction by providing the best in quality and service.

Front 36

In management accounting what is: continuous improvement

Back 36

a philosophy of requiring employees to continually look for ways to make business more efficient.

Front 37

In management accounting how do you calculate: expected value of benefits or costs

Back 37

Est. Amount
*
Probability of Occurance
= Expected Value

Front 38

What are the six main components to the value chain?

Back 38

1. R&D
2. Design
3. Production or Purchases
4. Marketing
5. Distribution
6. Customer Service

Front 39

How do you calculate the "cost of goods manufactured?"

Back 39

[Begining Work in Progress Inventory]
+
[Current Period Manufacturing Costs (direct materials used, direct labor, manufacturing overhead)]
-minus
[Ending work in progress inventory]

Front 40

How do you calculate the "cost of goods sold for a merchandiser?"

Back 40

[Begining Inventory]
+
[Purchases and Freight-in]
-minus
[Ending Inventory]

Front 41

How do you calculate the "cost of goods sold for a manufacturer?"

Back 41

[Begining Finished Goods Inventory]
+
[Cost of Goods Manufactured]
-minus
[Ending Finished Goods Inventory]

Front 42

What costs are inventoriable for a merchandizer?

Back 42

Purchases and Freight in

Front 43

What costs are inventoriable for a manufacturer?

Back 43

Direct materials used, direct labor, manufacturing overhead

Front 44

What is process costing?

Back 44

System of assigning costs to a large number of identical units

Front 45

What is job costing?

Back 45

System of assigning costs to a small batch of products or services that pass through production steps as a distinct and indentifiable job and can very considerably in materials labor and overhead costs.

Front 46

Compare and Contrast Job vs. Process costing

Back 46

Job- less averaging - cost over a small number of units in small batch

Process - costs averaged over many identical units

Front 47

cost tracing

Back 47

assigning direct costs to cost objects

Front 48

cost allocation

Back 48

assigning indirect costs to cost objects

Front 49

cost assignment

Back 49

general term refering to cost allocation and tracing

Front 50

Materials Inventory

Back 50

T account from which you can credit direct and indirect material costs to be credited to "Work in progress" and "manufacturing overhead" accordingly

Front 51

Manufacturing Wages

Back 51

Credited creates a balance... debited, can be to either direct (Work in Progress) or indirect (Manufacturing Overhead)

Front 52

Debit to Materials Inventory

Back 52

Credit to Accounts Payable or Cash... etc...

Front 53

Debit to Manufacturing Wages

Back 53

Credit to Cash or to wages payable... incurring a cost

Front 54

Assigning Manuafacturing Wages

Back 54

Debit "Work in Progress Inventory" or "Manufacturing Overhead"... Then Credit Manufacturing Wages

Front 55

What are some examples of Manufacturing Overhead?

Back 55

most indirect materials and labor... plant related expenses...

Front 56

How is manufacturing overhead allocated at teh begining of the year?

Back 56

It is usually a set percentage of whatever the base of production is.

Front 57

What happens if the actual rate of allocation is higher than the estimate?

Back 57

Then the cost of the product needs to be raised due to under allocation. This is done by debiting "Cost of Goods Sold"

Front 58

What happens if the actual rate of allocation is less than initially estimated?

Back 58

Then there is a need to credit "Cost of Goods Sold" and debit "Manufacturing Overhead"

Front 59

What if a job is "undercosted"

Back 59

Then Cost of Goods sold should be debited (increased) and Manufacturing overhead needs to be credited

Front 60

What if a job is "overcosted"

Back 60

Debit "manufacturing overhead" and credit "cost of goods sold"

Front 61

Under the conditions of overallocation, what journal entries should be made?

Back 61

Debit- Manufacturing Overhead
Credit- Cost of Goods Sold

Front 62

Under the conditions of underallocation, what journal entries should be made?

Back 62

Debit- Cost of Goods Sold
Credit- Manufacturing Overhead

Front 63

Relevant Range

Back 63

The band of volume where total fixed costs remain constant and the variable costs per unit remain constant

Front 64

Contribution Margin

Back 64

Sales Revenue minus variable expenses. OR the amount of per unit without taking into account fixed cost.

Front 65

Contribution Margin Ratio

Back 65

Ratio of Contribution margin to sales revenue

Front 66

Calculate Break-Even

Back 66

Sales in Dollars is =
(Fixed Expense + Operating Income)
------------------------
(Contribution Margin Ratio)

Front 67

what is variable costing?

Back 67

Direct Materials
+ Direct Labor
+ Variable overhead
-----------------------
= Product Cost

Front 68

What is absorbtion costing?

Back 68

Direct Materials
+ Direct Labor
+ Variable overhead
+ Fixed overhead
-----------------------
= Product Cost