managerial accounting terms

Costs that are capitalized as inventory during completion of products are called:

product cost

Materials a company acquires to use in making products are called:

raw materials inventory

A direct cost is a cost that is:

Cost-effectively traceable to a cost object

The amount by which the overhead applied to jobs during a period exceeds the overhead incurred during the period is known as:

Overapplied overhead

The process of setting goals and making plans to achieve them is known as:

planning

Managerial accounting information:

Involves gathering information about costs for planning and control decisions

A classification of costs that determines whether a cost is expensed to the income statement or capitalized to inventory is

Product vs period

A management concept whose goal is to eliminate waste while “satisfying the customer” and “providing a positive return” to the company is called

Lean Business Model

Labor costs are classified as either

direct or indirect

Which of the following is not a direct cost for a scooter manufacturer?

office rent

The rate established before the start of a period that uses estimated overhead costs and an estimated activity base such as estimated direct labor, and that is used to apply estimated overhead to jobs, is the:

Predetermined overhead rate

A document that production managers use to request materials for production and shows the job number, the types of materials, and the quantities needed is a

Materials requisition

Period costs for a manufacturing company flow directly to

The income statement as an expense

Factory Overhead =

Factory Maintenance Salary + Depreciation on Factory Equipment + Indirect Materials + Factory Rent + Property Taxes on Factory

which of the following must be prepared before the direct labor budget?

production budget

an important tool in predicting how changes in cost and sales levels affect profit is

cost volume profit analysis

which of the following should not be considered when determining the production budget for an accounting period.

budgeted overhead

which of the following should not be considered when preparing a cash budget?

depreciation expense

a graph of unit volume and cost data is called a

scatter diagram

a plan that states the units to produce each period to meet budgeted sales and a desired inventory level

production budget

which of the following is not completed before a cash budget is prepared

budgeted income statement

the normal operating range for a business is called

relevant range of operations

a budget that reports expected cash receipts and cash payments related to the sale and purchase of plant assets

capital expenditures budget

The difference between actual price per unit of input and the standard price per unit of input results in a

Standard variance

A cost center is a unit of a business that incurs costs without directly generating revenues. All of the following are considered cost centers except:

Juice product line division at Coca Cola.

Costs that are incurred for the joint benefit of more than one department and cannot be readily traced to only one department are

indirect expenses

The amount by which a department's sales exceed its cost of goods sold and direct expense is

departmental contribution to overhead

Which of the following is not one of the perspectives used to analyze performance using the balanced scorecard?

number of employees

A cost that requires a future outlay of cash and is relevant for decision making, is a(n)

out-of-pocket cost