Introduction to Cost & Managerial Accounting

Flashcards summarizing key concepts from the Introduction to Cost & Managerial Accounting lecture.

Management Accounting

Focuses on providing information to managers for decision-making within the organization.

Financial Accounting

Focuses on providing information to external parties such as investors, creditors, and regulators.

Cost Object

Any item for which costs are measured and assigned, such as products, services, or departments.

Direct Costs

Costs that can be traced directly to a specific cost object.

Indirect Costs

Costs that cannot be traced directly to a specific cost object.

Manufacturing Costs

Costs that are incurred in the production of goods, including direct materials, direct labor, and manufacturing overhead.

Non-Manufacturing Costs

Costs that are not involved in the production process, such as selling and administrative expenses.

Fixed Costs

Costs that remain constant regardless of the level of production or sales.

Variable Costs

Costs that vary directly with the level of production or sales.

Mixed Costs

Costs that contain both fixed and variable components.

Product Costs

Costs that are incurred to manufacture a product and are included in inventory until sold.

Period Costs

Costs that are not tied to the production process and are expensed in the period incurred.