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41 Cards in this Set

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Concerned with the reporting of transactions

Financial accounting

Examples of financial accounting

income statements and balance sheets

Uses historical and estimated data to assist in the management of daily operations and future planning

managerial accounting

example of managerial accounting

budget

Statement of assets, liabilities, or debts and capital stock at a given time or the end of the accounting period

balance sheet

current assets

cash and things that can be converted quickly into cash

examples of current assets

inventory, accounts receivable

Fixed assets

items not usually easily sold

example of fixed assets

land, buildings, equipment

current liabilities

must be paid within 1 year

fixed liabilities

long term

financial report that presents the net income or profit of an organization for the accounting period

income statement

income statement is also sometimes called what?

profit and loss statement

a written financial statement in numerical terms for a specified period of time

budget

a process of planning, coordinating, and controlling financial resources in order to meet the objectives and goals of the organization

budgeting system

an activity or group of activities for which costs are specified

cost centers

uses of the budget

planning and controlling

when a budget is properly administered it comes a tool of:

control and accountability

controllable costs

overtime salaries


supplies / equipment


other purchases

short term budget structure

supplies, expenses for personnel

long term budget structures

capital equipment or improvement

periodic moving budget

jan - march


predicts what to do july - sept

Budget that takes into account revenue, expense, director labor budget, direct material budget, overhead budget, and other expense

operating budget

projects income from the sale of products/services based on volume and price. also looks at other income

revenue budget

anticipates costs and can be divided into sub budgets such as labor, material, overhead, and miscellaneous expenses

expense budget

predicts labor costs but does not include benefits

direct labor

projects the cost of raw materials (food, cleaning supplies, dishes, utensils, flatter, glassware, disposables, small equipment)

direct material budget

cost of facilities


rent/mortgage


utilities


reports


maintenance

overhead budget

two basic types of operating budgets

incremental budgeting and zero based budgeting

the financial database of the past is increased by a certain percentage

incremental budgeting

uses past experience head forecasting, presumes stable conditions

fixed budget

is adjusted for actual activity, is used where operating costs (etc) tend to fluctuate a lot (seasonal fluctuations)

variable budget

Starts from scratch each time in the budgeting process and evaluates all activities before funds are allocated, developed by peter phyrr

zero based budgeting

who developed zbb

peter phyrr

objectives that yield the greatest benefit for the least cost

cost benefit

document that identifies a specific activity so it can be ranked against other activities

decision package

identifies alternative means for performing the same function and identifies the best alternative to choose

mutually exclusive package

zbb funding is projected for how many years?

3

statement of the assets and liabilities of an organization based on budget estimates

budgeted balance sheet

summarizes the comparison in dollars and cents of the income with all the expenses in a given period, usually done monthly

profit and loss statement

cost of goods sold =

beg inv + monthly purchases - end inv