Who is the audience in managerial accounting?
Internal management
What are the 3 purposes of managerial accounting?
Planning
Controlling
Decision Making
The control process of managerial accounting involves gathering, evaluating, and responding to ______.
feedback
What are 3 uses for managerial accounting reports?
planning for the future
making progress toward goals
making strategic decisions
Strategic management involves coming up with a _____ ______ ______ (a plan for satisfying customers)
customer value proposition
What are the 3 types of customer value propositions?
Customer intimacy
Operational excellence
Product leadership
What are the two goals of risk management?
Identify risks
Develop responses
Adding products that add value and removing products that don't is known as ____ _______.
Process management
When products are produced in response to customer orders, this is known as Just-in-Time production, or ______ production.
Lean
The weakest link, or "constraint" is also known as the ______.
Bottleneck
6 traits of a good leader:
Technically competent
Person of integrity
Effective in implementing organizational change
Strong communicator
Capable of motivating
Effective manager
What are the 4 principles in the Statement of Ethical Professional Practice?
Honesty
Fairness
Objectivity
Responsibility
What are the 4 standards in the Statement of Ethical Professional Practice?
Competence
Confidentiality
Integrity
Credibility
Corporate social responsibility considers the needs of all ________.
Stakeholders
The way the company is directed and controlled is known as _____ _______.
Corporate governance
Internal controls can be either _____ or ______.
preventative
detective
What is the difference between indirect materials and direct materials?
Direct materials can be traced to the product. Indirect materials are not cost effective to trace.
What is the difference between indirect labor and direct labor?
Direct labor is provided by the people who actually touch the product.
What are the 3 components of manufacturing overhead?
Indirect labor
Indirect materials
Other overhead
What are the two types of non manufacturing costs?
Selling costs
Administrative costs
What is another term for non manufacturing costs?
Period costs
What does Prime Cost consist of?
Direct materials and direct labor
What does Conversion Cost consist of?
Direct labor and overhead
The way a cost reacts to a change in activity level is known as ____ _____.
Cost behavior
What is another term for activity base?
Cost driver
How is total variable cost calculated?
Variable cost per unit times quantity
With fixed costs, when the activity level increases, what happens to the fixed cost per unit?
It decreases
A cost that cannot be avoided, even if the product is discontinued, is known as a _____ fixed cost.
Committed
A cost that can be controlled in the short-term is known as a _____ fixed cost.
Discretionary
Costs are only linear in the _____ ______.
Relevant range
What is a mixed cost?
A cost that contains both fixed and variable components
What is the formula for the high-low method of estimating variable costs?
(cost at high level - cost at low level) / (high level - low level)
What is the formula for the slope of a line?
Y = mx + b
In the formula Y = mx + b, what represents "total cost"?
Y
In the formula Y = mx + b, what represents "variable cost per unit"?
m
CVP analysis focuses on how profits are affected by what 5 variables?
Selling prices
Sales volume
Unit variable costs
Total fixed costs
Product mix
What 3 things does CVP analysis identify?
Break-even points
Profits
Losses
As sales increase, total costs and volume increase. This is the _____ graph.
total revenue
As sales increase, variable costs and volume increase. This is the _____ graph.
total variable cost
As sales increase, fixed costs stay the same and volume increases. This is the _____ graph.
total fixed cost
The total cost graph consists of the ____ graph stacked on top of the _____ graph.
total variable cost, total fixed cost
On the CVP graph, the break-even point is where the ______ graph intersects the _____ graph.
total revenue, total cost
As fixed costs increase, the break-even point increases/decreases.
Increases
As the sales price increases, the break-even point increases/decreases.
Decreases
As the variable cost per unit increases, the break-even point increases/decreases.
increases
What are the components of an absorption costing income statement?
Sales - COGS = GP
GP - Operating Expenses = Operating Income
What are the components of COGS in absorption costing?
DM, DL, FOH
What are the components of a variable costing income statement?
Sales - variable costs = contribution margin
Contribution margin - fixed costs = operating income
What is manufacturing margin?
Sales - variable manufacturing cost
When all products that are produced are sold, how does operating income for absorption costing compare to variable costing?
They are equal
When not all of the products produced are sold, how does operating income for absorption costing compare to variable costing?
Absorption costing income is greater than variable costing
