Managerial Accounting Review

Flashcards based on the lecture notes covering key concepts in Managerial Accounting, including costs, budgeting, and financial principles.

What are the two main focuses of the course mentioned in the lecture?

The behaviors of costs and allocating those costs.

Why is mastering Excel skills emphasized in the lecture?

Excellent Excel skills are crucial for your success in accounting and related fields.

What is the purpose of the reflective paper assigned to students?

To express what they got out of their project experience and showcase their personal insights.

What does the term 'cost object' refer to in accounting?

A cost object is anything for which you want to measure costs, such as a product, project, or classroom.

How can costs be allocated between roommates, according to the lecture?

Costs can be split evenly or in proportion to room size or usage.

What is the difference between costs and expenses as discussed in the lecture?

Costs are incurred to produce products and become expenses when the product is sold.

What are direct costs and how do they differ from indirect costs?

Direct costs can be traced to a specific product, while indirect costs cannot be easily traced to a single product or cost object.

What are the three types of manufacturing costs mentioned?

Direct materials, direct labor, and manufacturing overhead.

What is a fixed cost and how does it behave?

A fixed cost remains constant in total regardless of the level of activity or number of units produced.

What is the formula for total cost in managerial accounting?

Total cost equals fixed cost plus variable cost multiplied by activity.

How do variable costs behave in relation to production?

Variable costs vary in total with the level of production; the more produced, the higher the variable costs.

What is an opportunity cost?

The potential profit lost when choosing one alternative over another.

What are the differences between committed and discretionary fixed costs?

Committed fixed costs are long-term and cannot be easily changed, while discretionary fixed costs can be altered in the short-term based on management decisions.

What is 'product cost' in the context of manufacturing?

Product cost is every cost incurred to create a product, including direct materials, direct labor, and overhead.

What is the difference between product costs and period costs?

Product costs are related to creating inventory while period costs are expenses incurred in a specific time period, unrelated to manufacturing.