managerial accounting

managerial accounting

is the process of identifying, measuring, analyzing, and communicating financial information to help managers make informed business decisions.

strategic planning

long term objectives (involves time of 5 to 10 years)

operational planning

short-term action planning

measurement

Performance metrics on how the company is achieving its objectives

evaluation

process which management monitors operation by comparing actual and expected results

control

management takes actions to encourage specific behavior

management process

strategic planning, measurement, control

What are verticals sometimes referred to as?

business units

what are verticals?

Businesses within the parent company

horizontals

departments within a company that are not responsible for developing products

cost

a sacrifice made to obtain some benefit

cost object

the thing you're measuring costs for.

direct costs

a cost object that can be traced

indirect costs

cost objects that cannot be traced

MOH

manufacturing overhead

direct labor cost

employee wages that are an integral part of the finished product

manufacturing overhead AKA

factory overhead

prime cost

direct materials and direct labor

conversion cost

direct labor and manufacturing overhead

material inventory

costs of direct and indirect materials

material inventory AKA

raw materials

work in progress inventory

direct materials, direct labor, and manufacturing overhead cost for products that have entered the manufacturing process

finished goods inventory

finished products that have not been sold yet

utilization rate

Measures the use of a fixed asset in serving customers