CHAPTER 14 ACCT 202 Definition Flashcards

Reviewing past activities

Determining costs of products and services

Determining costs of employee wages and salaries

Comparing actual to planned results

The purposes of managerial accounting are to provide useful information to aid in:

Purpose is to assist managers in planning and control decisions.

What is Managerial Accounting System

Structured and follows GAAP.

What is Financial Accounting System

Opportunity

(BLANK) is when a person commits fraud and feels a low risk of getting caught.

Direct

(BLANK) costs are cost-effectively traced to a cost object.

Period

Common examples of (BLANK) costs include selling expenses and general office personnel, advertising expenses, and depreciation of office equipment.

indirect

Common examples of (BLANK) costs for an airline include ground crew and maintenance crew wages.

Direct Material + Direct Labor

What are prime costs?

Raw materials used
Raw materials beginning inventory
Raw materials purchases
Work in process beginning inventory
Goods manufactured
Direct labor used
Factor overhead used

From the list below, select the items that are classified as a materials activity. (ALL THE ABOVE)

Customer orientation

Which of these phrases describes the fact that employees understand the changing needs and wants of their customers and align their management and operating practices accordingly?

Total quality management

Which is the lean principle where managers and employees seek to uncover waste in business activities including accounting activities such as payroll and disbursements?

Triple bottom line

A focus on financial, social, and environmental measures is known as

finished goods inventory

Completed products ready for sale are referred to as:

Raw Materials Used / Average raw materials inventory

How to calculate Raw Materials Inventory Turnover

Beginning raw materials inventory + Ending
raw materials inventory / 2

How to calculate Average Raw Materials Inventory

items making up cost of goods sold

The main difference on the income statement between a manufacturer and a merchandiser includes:

Beginning merchandise Inventory
+
Cost of merchandise purchased
-
Ending Merchandising Inventory

Cost of goods sold (Merchandiser)

Beginning finished goods inventory
+
Cost of goods manufactured
-
Ending finished goods inventory

Cost of goods sold (Manufacturer)

Direct Labor
Direct Materials

Factory Overhead

Cost of Goods Manufactured

Cost of Goods Sold

Net Income

Which of the following are sections of the Schedule of Cost of Goods Manufactured? (ALL THE ABOVE)

Direct labor costs and overhead costs

What are Conversion costs

Product, process, department, or customer to which costs are assigned

What is the Cost object

Sequential activities that add value to an entity’s products or services; includes design, production, marketing, distribution, and service.

What is the Value chain

Sales

• Cost of Goods Sold

  • Finished Goods Inventory, beginning

  • Cost of goods manufactured
    

  • Goods Available for sale

  • Less: Finished goods inventory, ending

  • Cost of goods sold

• Gross Profit

• Selling Expense

• General and administrative expense

• Net Income

Income Statement Format

• Cash

• Accounts recieveable, net

• Prepaid expenses

• Raw materials inventory

• Work in process inventory

• Finished goods inventory

• Total Current assets

Balance Sheet Manufacturer Format

• Cash

• Accounts receivable, net

• Prepaid expenses

• Merchandise inventory

• Total current assets

Balance Sheet Merchandiser Format