ACC293 Management Accounting Flashcards fill in blank

Fill-in-the-blank flashcards based on lecture notes for ACC293 Management Accounting.

Financial Accounting is aimed at _ stakeholders.

Externally focused, catering to investors and regulators.

Management Accounting is focused, catering to managers and employees.

Internally focused, catering to managers and employees.

Management accountants organizational value by supporting management functions and decision-making.

Enhance organizational value by supporting management functions and decision-making.

Traditional management accounting overlooks broader impacts on stakeholders by focusing on calculations like , _, and __.

Product costing, budgeting, performance evaluation.

__ costs to acquire inventory are considered part of inventory cost.

Freight costs into inventory.

The three main components of manufacturing cost are , , and __.

Direct materials, direct labor, and overhead.

Manufacturing costs flow through the accounts: Inventory, Inventory, Inventory, and .

Raw materials, work in progress, finished goods, cost of goods sold.

In profit measurement, _ minus equals .

Sales revenue - cost of sales = gross profit.

Cost of Goods Sold is calculated by: + - __.

Beginning Inventory + Purchases - Ending Inventory.

Costs flow from: -> -> -> .

Raw Material Inventory -> Work in Process -> Finished Goods Inventory -> Cost of Goods Sold.

A Cost Driver is an __.

Activity that incurs costs.

Variable Costs with production volume.

Change proportionally with production volume.

Fixed Costs __ with production activity; cost per unit changes as production level changes.

Do not change with production activity; cost per unit changes as production level changes.

Relevant Range is defined as __.

The level of activity where cost behavior is stable.

The four steps to allocate indirect costs of products are: __, __, __, __.

Aggregating overhead cost into one or more cost pools, identifying the appropriate overhead cost driver, calculating a predetermined budgeted overhead rate per unit of cost driver, applying the predetermined overhead to product based on each product usage of the cost driver.

Budgeting is a crucial aspect for modern organizations, bridging and dimensions.

Financial and behavioral.

__ planning involves decisions on business types, market engagement, and financing methods.

Strategic.

The _ budget is crucial, forming the foundation for cost and profitability analyses.

Sales.

Master Budget represents a __ view, interlinking various independent budgets.

Comprehensive.

requires justification for all budgeted activities starting from zero.

Zero-Based Budgeting (ZBB).

Budgeting serves two primary purposes: and .

Cost control and establishing standard costing.

To maintain efficient cost management, it is essential to conduct analysis—comparing actual costs against standard costs.

Variance.

Job cost cards accumulate costs over time and summarize direct __, __, and __ incurred against specific jobs.

Materials, labor, and overhead.

The journal entries to capture the flow of resources are: __, __, __, __ .

Purchasing of raw materials, transferring costs, direct labor, and overhead allocation.

When it's not feasible to directly trace the cost of production back to a singular particular product or service, _ is used.

Process costing.

An example of a joint product is _.

Crude oil is refined into petrol diesel or a cow cut up in ton different joints and cuts.

The level of _ impacts how overhead is allocated.

The level of production capacity impacts how overhead is allocated.

__ uses activities as cost pools rather than departments.

Activity Based Costing (ABC).

In the ABC Model, the Management View provides information to manage __, __, and __.

Activities, costs, and value.

Normal Costing includes __.

A predetermined overhead rate.

Just-In-Time aims for _.

JIT aims for zero inventory.

The advantages of Absorption Costing is that it can __.

Comply with accounting standards and taxation case law for asset valuation.

JIT Employ a pull method, __.

Where customer demand drives production.

Responsibility accounting assigns __.

Managers to run specific units, fostering goal congruence, where everyone works toward the same organizational goals.

Investment Center is evaluated on profit and invested capital measured by __.

Return on investment.

Accounting Controls are in __ organisations.

Decentralized.

The imputed interest rate represents __.

The firm’s required rate of return on investments, based on the organization’s cost of capital.

Value-based management uses __.

Shareholder value analysis approach to manage a business, incorporating valuation, strategy, finance, and corporate governance.

ROI measures the efficiency of invested capital utilization calculated as __.

Profit divided by invested capital.