Managerial Accounting Exam 1 Cards – Flashcards
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managerial accounting
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internal users ex. managers
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financial accounting
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external users ex. creditors and government regulators
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IMA professional ethical standards
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1. competence 2. confidentiality 3. integrity 4. credibility
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IMA ( institute of management accounts)
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1. report financial statements to IMA
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Treasurer and controller
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report to CFO
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institute of management accountants
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IMA -> Certification (CMA)
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3 types of companies
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1. service 2. merchandiser 3. manufacturer
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manufacturers
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produce its own inventory
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value chains
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design, purchases, marketing, distribution, customer service, R & D, employee's salaries
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indirect labor
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non related to the product
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indirect materials
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materials that cannot be linked to specific products
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prime costs
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direct materials+direct labor
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period cost
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(R&D), design, marketing, customer services) -> operating expenses
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direct labor
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=wages paid to employer directly involved in producing product
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available for sale
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=beginning inventory + (purchases/ goods manufactured) + (freight in/ import duties)
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COGS
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=beginning inventory + (purchases/ goods manufactured) + (finished inventory/ import duties) - ending inventory
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process
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standard product job unique process/service
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materials requisition
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used to track use of raw materials
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absorption costing
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includes fixed costs in cost of production --variable cost DOES NOT
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pre manufacturing overhead rate
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total estimated cost/ total estimated allocation base
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manufacturing overhead rate
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cost/allocation base
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total cost
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=direct labor + direct materials + manufacturing overhead
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variable cost per unit
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remains constant regardless of output
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total fixed costs
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fixed CPU*units
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committed fixed cost
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long term ex: 30 year lease (cannot recover)
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as production increases...
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fixed costs remain the same
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variable CPU
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total cost- fixed costs= variable costs variable costs/ units= variable CPU
