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22 Cards in this Set
- Front
- Back
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3 objectives of managerial accounting |
Planning, controlling, decision-making |
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All activities other than those absolutely essential to remain in business |
Non-value added activities |
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Activities necessary for business to achieve corporate objectives and remain in business |
Value-added activities |
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Proportion of OH activity consumed by a product |
Consumption ratio |
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The way costs are measured and recorded |
Accumulating costs |
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The way cost is linked to a cost object |
Assigning costs |
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When an indirect costs is assigned in reasonable and convenient method |
Allocation |
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Costs of producing a product or acquiring a product (merch form) and prepping it for sale |
Product (Manufacturing) cost |
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All costs that are not product costs; selling, admin, depreciation... |
Period costs (non-manufacturing) |
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Assigns costs to activity, then cost object (product) |
Activity-based Costing |
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Length of time required to produce one unit of product |
Cycle time |
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Number of units that can produced in a given period of time |
Velocity |
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Point at which total revenue equals total cost, both FC and VC; profit is zero |
Break-even point |
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Number of units sold or sales revenue over the break-even point Sales - Break-even sales |
Margin of safety |
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Future costs that change across alternatives |
Relevant costs |
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Improve planning, control Facilitate product costing |
Purpose of standard costing system |
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Price standards are joint responsibility of... |
Operations, purchasing, personnel & accounting |
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Difference b/t Oper Inc and minimum dollar return required on opera assets |
Residual income |
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After-tax oper inc minus dollar cost of capital employed |
Economic value added (EVA) |
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Adv of ROI |
Encourages Mgr to focus on: S,exp,invest relations C effic Oper asset effic |
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Company borrowing/repay listed |
Cash budget |
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Fosters responsibility, encourages creativity, fosters goal congruence, challenge as nonmonetary incentive, higher performance |
Adv of participative budgeting |
