exam #1 managerial accounting study guide – Flashcards
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the provision of accounting information for internal users
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managerial accounting
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the users of managerial accounting information include
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for-profit companies, not-for profit organizations, city governments, educational institutions
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setting objectives and identifying methods to achieve those objectives is called
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planning
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the process of choosing among competing alternatives is called
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decision making
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characteristics of managerial accounting
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there is an internal focus, subjective information may be used, there is an emphasis on the future, it is broad-based and multidisciplinary
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an effective managerial accounting system should track information bout an organization's activities in which of the following area?
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development, marketing, production, design
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in terms of strategic positioning, which two general strategies may be chosen by a company?
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cost leadership and product differentiation
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which of the following is not a common form of certification for managerial accountants?
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certificate in external auditing
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the chief accounting officer for a firm is the
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controller
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which of the following is typically found in a corporation's code of ethics?
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compliance with the rule of law, integrity, honesty, and competence
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prime cost
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direct materials + direct labor
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conversion cost
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direct labor+manufacturing overhead
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ending inventory of materials
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beginning inventory of materials + purchases+ direct materials used in production
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per unit prime cost
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total prime cost/ direct labor
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per unit conversion cost
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total conversion cost/direct labor
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work in progress
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cost of the partially completed goods that are still on the factory floor at the end of the time period
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cost of goods sold
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represents the cost of goods that were sold during the period and therefore transferred from finished goods inventory on the balance sheet to cost of goods sold on the income statement
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gross margin
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sales revenue - cost of goods sold
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operating net income
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gross margin- selling and administrative expense
