Managerial Accounting Chapter 1

Front 1

Administrative Costs

Back 1

All excecutive, organizationla, and clerical costs associated with the general management of an organization rather than with manufacturing, marketing, or selling.

Front 2

Budget

Back 2

A detailed plan for th 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 cannot be traced to them individually. (Wage of a plane pilot is common cost to all passengers)

Front 4

Control

Back 4

The process of instituting procedures and obtaiing feedback to ensure that all parts of the organization are functioning effectively and moving toward overall company goals.

Front 5

Controlling

Back 5

Ensuring that the plan is actually carried out and is appropriatly modified as circumstances change.

Front 6

Conversion Cost

Back 6

Direct labor cost plus manufacturing overhead cost.

Front 7

Cost Behavior

Back 7

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

Front 8

Cost object

Back 8

Anything for which cost data are desired. Examples of possible costs objects are products, product lines, customers, jobs, etc.

Front 9

Cost of goods manufactured

Back 9

The manufacturing costs associated with the goods that werefinished during the period.

Front 10

Differential Cost

Back 10

A difference in cost between any two alternatives.

Front 11

Differential revenue

Back 11

A difference in revenue between two alternatives

Front 12

Direct Cost

Back 12

A cost that can be easily and conveniently traced to a specific cost object.

Front 13

Direct Labor

Back 13

Labor costs that can be easily traced to individual unito of product

Front 14

Direct Materials

Back 14

Materials that become an in tegral part of a finished product and whose costs can be conveniently traced to it.

Front 15

Directing and Motivating

Back 15

Mobilizing people to carry out plans and run routine operations

Front 16

Feedback

Back 16

Accounting and other reports that help mangers montor performance and focus on problems and/or opportunites

Front 17

Financial Accounting

Back 17

The phase of accoutning concerned with providing information to stockholders, creditors, and other outised the organization.

Front 18

Finished Goods

Back 18

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

Front 19

Fixed Cost

Back 19

A cost that remains constant, in total, regardless of changes int he level of activity with in the releveant range. (ex. rent)

Front 20

Incremental Cost

Back 20

An intreas in cost between two alternatives.

Front 21

Indirect Cost

Back 21

A cost that cannot be easily and conveniently traced to a specific cost object.

Front 22

Indirect Labor

Back 22

The labor costs of janitors, supervisors, material handlers, and other factory workers that cannot be conveniently traced directly to particular producs

Front 23

Indirect Materials

Back 23

Small items of material such as glue and nails. Costs cannot be convieniently traced.

Front 24

Inventoriable Costs

Back 24

Product Costs

Front 25

Mangerial Accounting

Back 25

The phase of accounting concerned with providing information to managers for use in planning an controlling operations and in decision making.

Front 26

Manufacturing overhead

Back 26

all costs associated with manufacuring except direct materials and direct labor.

Front 27

Opportunity Cost

Back 27

A potential benefit that is given up with one alternative is lselcted over another

Front 28

Performance report

Back 28

A detailed report comparing budgeted data to actual data.

Front 29

Period Costs

Back 29

Costs that are teken directly to the income statement as expnses in the period in wihd tey are incurred or accrued.

Front 30

Planning

Back 30

Selection a course of actiona nd specifying how the action will be implemented.

Front 31

Planning and Controlling Cycle

Back 31

The flow of management activites through planning, direction and motivation, and controlling, then back to planning again.

Front 32

Prime Cost

Back 32

Direct materials cost pluse direct labor cost.

Front 33

Product Costs

Back 33

All costs that are involved in the the purchase or manufacture of goods. (Direct Materials + Direct Labor+ Manufacturing Overhead)

Front 34

Raw materials

Back 34

Materials that are used to make a product.

Front 35

Relevant Range

Back 35

The range of activity within which assumptions about variable and fixed cost behavior are valid.

Front 36

Scheduel of cost of goods manufactured

Back 36

A schedule showing the direct materials, driect labor, and MO, costs incurred during a period and the portion fo those costs assigned to Work in Progress and Finished Goods

Front 37

Segment

Back 37

Any part of an org. that can be evaluation independently of other parts and about wich the manager seeks financial data. (product line, sales territory, etc)

Front 38

Selling Costs

Back 38

All costs necessary to secure customer orders and get hte finished product or service ion the hands of the customer.

Front 39

Sunk Cost

Back 39

A cost that has alread been incurred and that cannot be changed by any decsion made now or in the future.

Front 40

Variable Cost

Back 40

A cost that varies, in total, in driect proportion to changes in the level of activity.

Front 41

Work in process

Back 41

Units of product that are only partially complete and will require further work before they are ready for sale to a customer.