question

what is the basics of managerial accounting?

answer

provide financial information for users and managers

question

what is managerial accounting?

answer

financial/nonfinancial info for managing organization and other choice makers

question

what is managerial accounting used in?

answer

-planning, and -controlling business

question

how is managerial accounting used to plan the business?

answer

-determining strategic aims, suc as a 5-year plan from Steve Jobs -long and short-term goals, and -yearly budget

question

how is managerial accounting used to control the business?

answer

-measure -evaluate, and -oversight of business

question

what is the purpose of managerial accounting?

answer

to monitor and receive feedback from the business

question

how do managerial accountants receive feedback from the business?

answer

through planning and controlling the business

question

name one example of how managerial accountants plan in their business

answer

yearly budget

question

name one example of how managerial accountants control their business?

answer

evaluate the business

question

Name some characteristics of financial accountants?

answer

-external users -structured by GAAP -focused on past -focus on whole organization -involves monetary information

question

name some characteristics of managerial accountants?

answer

-internal users -no GAAP- flexible reporting -focus on future when making budgets -focus on organization project -mostly monetary, but also protect nonmonetarial information

question

how is financial accounting different from managerial accounting?

answer

one is focused on the past, the other is focused on the future

question

what affects all businesses in managerial accounting?

answer

fraud

question

Name all of the types of cost classification by behavior?

answer

-total fixed costs, and -total variable costs

question

visualize what total variable costs looks like on a graph.

answer

increasing vertical line on activitiy when cost increases

question

visualize what total fixed costs looks like on a graph.

answer

cost remains constant as activity increases (horizontal line on a graph)

question

cost behavior

answer

how cost reacts to change in level of business activity

question

total fixed costs

answer

when money remains constant as activity changes

question

total variable costs

answer

when money changes as activity changes

question

Name two different types of cost classifications by traceability?

answer

-direct costs, and -indirect costs

question

direct costs

answer

costs traced back to producer

question

name one example of direct costs?

answer

materials used to make chairs

question

indirect costs

answer

costs that can't be traced to single objects

question

name some examples of indirect costs?

answer

-utilities expense, and -insurance

question

name three cost classifications by function to produce a product?

answer

-direct labor, -direct material, and -manufacturing overhead

question

direct labr

answer

this involves people making table

question

expenses not attached to the product are what?

answer

period costs

question

in period costs, what are lost to obtain orders and deliever financial goods to customers?

answer

selling costs

question

in period costs, what are non-manufacturing costs of staff support and administrative functions?

answer

administrative costs

question

name two different types of period costs?

answer

-selling costs, and -administrative costs

question

period costs involve what?

answer

expenses

question

product costs involve what?

answer

inventory

question

what happens after period costs exist?

answer

goes into operating expenses in income statement

question

what happens after product costs exist?

answer

inventory sold in the current year goes into cost of goods sold in current year income statement, and inventory not sold until the next year goes into the current year's balance sheet at the end of the current year (including raw materials, work in progress, and finished goods)

question

what happens after inventory not sold until the next year goes into the balance sheet?

answer

inventory sold in the next year goes into cost of goods sold in income statement

question

car tires would be what kind of costs?

answer

variable, direct, and product

question

inventory

answer

entire stock of business, such as materials

question

wages of workers are almost always what?

answer

variable costs

question

wages of workers can also be what?

answer

fixed costs

question

managerial accounting

answer

make things up

question

straight-line depreciation

answer

default method used to gradually reduce the amount of its fixed asset over its useful life. Also factorial depreciation

question

cost concepts are usually applicable to what?

answer

service organizations

question

direct cost

answer

costs traceable to a single object

question

indirect cost

answer

these cannot be easily traced to a single cost object

question

product cost

answer

production costs necessary to create a product and conisist of direct materials, direct labor, and factory overhead

question

period cost

answer

non-production costs usually more associated with activities tied toward a time period instead of completed products

question

name one example of how the cost concept is applied?

answer

cost of beverages for people at restaurants based on number of customers

question

to make products, you must have what?

answer

-direct materials -direct labor -factory overhead

question

direct material

answer

materials used to make the product

question

name one example of direct material

answer

steel used in frame of mtn bike

question

direct labor

answer

people making production on assembly line

question

name one example of direct labor

answer

wages paid to people decorating cakes in bakery

question

factory overhead

answer

all manufacturing costs not direct material (material used to make product) or direct labor (people making products on assembly line) and costs can't be separated/readily traced to finished goods

question

name one example of factory overhead?

answer

indirect material- cleaning supplies

question

what two things are involved in prime cost?

answer

direct material (material used to make product)/ direct labor (people making products on assembly line)

question

what two things are involved in conversion costs (on exam)?

answer

direct labor (people making products on assembly line)/manufacturing overhead and convert direct material to finish product

question

what do merchandisers do?

answer

buy/sell finished goods

question

what do manufacturers do?

answer

buy raw materials, and produce/sell finished goods

question

what current assets are merchandisers responsible for?

answer

cash, receivables, and merchandise inventory

question

what current assets are manufacturers responsible for?

answer

cash, receivables, and inventory (raw materials- [cost+tax/target+transportation+insurance]- [debit raw materials/inventory, credit cash], goods in process, and finished goods)

question

raw materials

answer

materials waiting to be processed, and can be direct/indirect

question

goods in process

answer

partially completed products; material to which some labor and/or overhead have been added

question

finished goods

answer

completed products for sale

question

cost of goods sold for a merchandiser equals what?

answer

Beginning merchandise inventory+cost of goods produced-ending merchandise inventory

question

cost of goods sold for a manufacturer equals what?

answer

beginning finished goods inventory+cost of goods manufactured-ending finished goods inventory

question

total manufactured costs equals what?

answer

direct materials used+direct labor+factory overhead

question

factory overhead

answer

this consists of all manufactoring costs not direct labor/materials

question

direct materials

answer

tangible components of finished product

question

direct material costs

answer

expenditures for direct materials (tangible components of finished product) separately/readily traced thru manufacturing process of finished goods

question

direct labor

answer

this involves ppl making product on assembly line

question

name one example of direct labor

answer

people making icing to put in icing tubes

question

work in process

answer

when you possess completed goods

question

manufacturing overhead

answer

all manufacturing costs not direct labor/materials

question

what is the formula for work in process (when you possess completed goods)?

answer

raw materials (materials wating to be processes, and can be direct/indirect)+direct labor (people making product on assembly line)+manufacturing overhead (manufacturing costs not direct labor/materials- tangible components of finished product)

question

finished goods formula

answer

product materials+direct labor (ppl making production on assembly line)+manufacturing overhead (manufacturing costs not direct labor/matierials- tangible components of finished product)

question

what is the formula for total manufacturing costs?

answer

direct materials used+direct labor+factory overhead

question

what is the formula for cost of goods manufactured?

answer

total manufactured costs+beginning work in process-ending work in process

question

in the flow of merchandising activities, when direct materials is credited, what happens to work in process?

answer

debited

question

in the flow of merchandising activities, when direct labor is credited, what happens to work in process?

answer

debited

question

in the flow of merchandising activities, when manager overhead is credited, what happenst to work in process?

answer

debited

question

in the flow of merchandising activities, when final goods are debited, what happens to work in process?

answer

credited

question

in the flow of merchandising activities, when selling product, what happens?

answer

final goods credited, cost of goods sold is debited

question

What do you do to get total inventory in flow of merchandising activities?

answer

direct materials + work in process + final goods

question

manufacturing statement

answer

direct materials used for whole year

question

cost of goods manufactured

answer

how much it costs to manufacture final products

question

name one example of cost of goods manufactured

answer

cost to make cakes

question

cost of goods sold

answer

beginning finished goods+cost of goods manufactured-ending finished goods

question

in the accounting report, the cost of goods manufactured goes from where to where?

answer

schedule of cost of goods to income statement

question

in the account report, ending work in process goes from where to where?

answer

schedule of cost of goods to balance sheet

question

in the accounting report, ending finished goods goes from where to where?

answer

balance sheet to income statement

question

customer orientation

answer

employees understand the changing wants and needs of customers and do what they can to help them

question

e-commerce

answer

increase in demand of technology as well as being able to use it whenever and wherever consumers want

question

lean practices

answer

what you do to make economy efficient

question

continuous improvement

answer

striving for excellence

question

total quality management

answer

focus on quality improvement through all standards of business

question

just-in-time manufacturing

answer

acquire inventory and produce only when needed

question

name one example of value chain

answer

acquire raw materials, baking, sales, services

question

value of chain

answer

series of procedures adding to what's a big deal to company's products/services

question

continuous improvement from customer orientation comes from what?

answer

just-in-time manufacturing (acquire info only when needed), and total quality mgmt (focus on improvement thru all standards of business)

question

what happens in total quality mgmt?

answer

constant focus on higher standards

question

Goal in accounting for producing reports?

answer

see avg sales go up then down

question

name all of the steps involved in just-in-time manufacturing

answer

-receive customer orders -schedule production -receive materials just in time for production -complete parts just in time for assembly into products -complete products just in time to ship to customers

question

what are some additional steps involved in JIT manufacturing?

answer

-rearrange manufacturing facility -everything must be in line

question

goal in JIT manufacturing?

answer

deliever things as quickly as possible

question

raw materials inventory

answer

goods a company acquires in order to make products

question

raw materials inventory turnover

answer

use to determine how effective a company can manage its raw materials inventory (goods company acquires in order to make products)

question

what is the formula for raw materials inventory turnover?

answer

raw materials (goods that can be used in order to make the product) used/average raw materials inventory (goods company acquires in order to make products)

Chapter 18- managerial accounting concepts and principles – Flashcards

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