ACCT FALL2024

Formula of COG (Cost of Goods Sold)

Beg Inv+purchases=COG available for sale - Ending Inv

Income Statement

Revenue - Expenses

Gross Profit

Revenue-COGS

Direct Materials Used Formula

Beginning Materials + Costs of Materials Purchased - Ending Materials

Planning

setting goals & strategic objectives for the company. The budget is a clear plan for managers to achieve

Directing

overseeing the company’s day-to-day operations to achieve their goals

Controlling

comparing actual results to plan/budget & making adjustments as they seem fit to reach the goals of the company

Competence

Appropriate educational background and expertise and performing duties in obligation-relevant rules, laws, regulations, and technical standards.

Confidentially

keep information private except when legally required to disclose and monitor subordinates to ensure compliance and confidentially. Do not use confidential information for unethical advantage.

Integrity

mitigate conflict of interest, refrain from activities that could prejudice you from carrying your duties ethically, do not engage in activities that could discredit the profession

Credibility

communicate information fairly and objectively, and disclose all relevant information.

Total Product Cost

Direct Labor + Direct Materials + Total Manufacturing Overhead cost

Total Prime Cost

Direct Material + Direct Labor

Total Conversion Cost

Direct Labor + Total MOH

Research and Development​ (R&D)

improving new products of services and the processes for producing them

Design

Detailed engineering

Production or Purchases

resources used by manufactures to produce a products or service or by merchandising companies to purchase finished merchandise intended for resale

Marketing

promotion or advertising of products or services

Distribution

Delievery of products or services

Customer service

Assistence for customers

Total MOH cost

indirect labor + indirect materials + Other MOH

data analytics

Using large and diverse data sets to make good business decisions. data analysis experts are problem solvers 

Total Variable costs

Qty of capacity x Variable cost per unit

Total Product Variable cost

Total Variable cost + Total Fixed Cost

Current average products cost per unit

Total product costs/Current year’s produced units

Current Fixed cost per unit

Total fixed cost/Current year’s produced units

Forecasted total variable costs

Forecasted quantity X Variable cost per unit

Raw Materials Inventory

items acquired for the purpose of processing into finished goods

work in process inventory

goods that are partway through the manufacturing process but not yet complete

finished good inventory

items that are ready for sale to customers

Direct Costs

costs that can be easily and accurately traced to a cost object

Indirect Costs

Costs that cannot be easily and accurately traced to a cost object.

Product Costs

costs that are a necessary and integral part of producing the finished product

Period costs

costs that are taken directly to the income statement as expenses in the period in which they are incurred or accrued

Prime Costs

Cost of goods for manufacturing company

Beg inv + COGM = COG available for sale - End Inv

Production schedule

a schedule showing when to produce goods for specific orders or for finished goods inventory. For a service company,  create a schedule of when services will be performed. 

Bill of materials

recite card showing materials and amounts needed to manufacture a job

Purchase order

the order you place with suppliers to buy materials

Raw material records

shows what raw material inventory you currently have on hand and how much of each

Job cost record

document to keep track of all costs of a specific job. Direct Materials and direct labor costs are traced to the job and manufacturing overhead is allocated

Direct Materials

document to keep track of all costs of a specific job. Direct Materials and direct labor costs are traced to the job and manufacturing overhead is allocated

Direct labor

traced with labor time records

Predetermined MOH Rate

Total Estimated MOH Costs/Total Estimated Amount of Allocation Base

MOH Allocated to a Job

Predetermined MOH Rate ×Actual Amount of Allocation Base Used

Data

Facts and statistics collected together for reference or analysis

stuctured data

unstructured data

Data does not exist in a fixed location and can include text documents, PDFs, voice messages, emails

semi-structured data

data that has some organization but is not fully organized to be inserted into a relational database

numerical data

Data that consists of numbers

categorial data

Information that can be easily classified or placed into simple categories

ordinal data

data exists in categories that are ordered but differences cannot be determined or they are meaningless. (Example: 1st, 2nd, 3rd)

Sorting

separating products into grades and qualities desired by different target markets

Filtering

a process of change in the use of a house, from single-family owner occupancy to abandonment

in a job costing system, which of the following statements about materials is not correct?

Materials used during production are always classified as direct materials