Card Set Information

2011-02-22 21:10:35

Test 1, Chaps 1, 2, 3
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  1. Managerial Accounting
    • Providing Info to managers.
    • Essential data needed to run orgtanizations
    • Internal Users
    • Emphasis on Future
    • Provides data of Relevance
    • Emphasis on timeliness
    • Focuses on Segments of organization
    • Does not follow GAAP
    • Not madatory
  2. Financial Accounting
    • Provides Info to stockholders
    • Outsiders
    • Focus on Precision when reporting
    • Reports for company as a whole
    • Uses GAAP
    • Mandatory for external reports
  3. Work of Managment
    • 1. Planning: Establishing basic strategy
    • 2. Directing and Motivating: Oversea day to day and keep it moving
    • 3. Controlling: Measuing performance, and comparing to what is planned
  4. Decentralization
    • Delegation of decision making authority through out an organization.
    • Breaks decisions up so managers make decisions in their department.
  5. Line Position
    Directly involed in basic objectives of the organization
  6. Staff Position
    Support and assist the line position
  7. The Controller
    • The US manager of the accounting department
    • They report to the CFO
  8. CFO
    • Cheir Financial Officer
    • Responsible for providing timely and relevant data to support planning and control activities
  9. CEO
    • Cheif Executive Officer
    • The President
    • Sets broad strategies for company and makes major strategic decisions
  10. Traditional Manufacturing
    • Push to make as much as possible
    • Do not worry about what the sales are
    • End up having large inventories of all things
  11. Raw Materials
    • Materials waiting to be processed
    • These consist of direct and inderect.
    • All materials that are purchases
  12. Work in Process
    • Partially completed products
    • Consists of raw materials, direct labor, manufacturing overhead
  13. Finished Goods
    Completed but not yet sold
  14. Lean Thinking Model
    • 5 step process results in a Pull system
    • Reduces inventories
    • Decreases defects
    • Reduce wasted effort
  15. JIT
    • Just in Time Model
    • The work takes place just in time in the sense that raw materials are recieved by each manufacturing cell just in time to go into production. Products completed just in time to be shipped to the customers.
  16. Theory of Constrants (TOC)
    • Constraint: aka bottleneck is anything that prevents you from getting more of what you want.
    • This is based off of observation that effectivly managing the constraint is key to success.
    • Improvement factors must be focused on the constraint
  17. Six Sigma
    • Process improvment method that relies on cusomer feedback and fact-based data gatherin and analysis techniques to drive process improvement.
    • Generates no more than 3.4 defects per million
    • DMAIC: Define, Measure, Analyze, Improve, and Control.
  18. Code of Conducts
    • Competence: Continue schooling, perform according to law, be accurate
    • Confidenciality
    • Integrity
    • Credibility
  19. CMA
    • Cerfified Management Accountant
    • Given greateer responsiblities and higer compensation.
  20. Chapter 2
  21. Manufactoring Costs
    • Direct Materials
    • Direct Labor
    • Manufactoring Overhead
  22. Direct Materials
    Raw materials that can be easily traced
  23. Direct labor
    • Labor costs that easily be traced
    • Touch labor because it is the cost of workers who touch the product
  24. Manufacturing Overhead
    • Costs that cannot be traced directly
    • Anything needed to build the prduct that can not see on it
    • Heat, light, depreciation, insurance, property taxes, cleaning supplies
  25. Nonmanufactuing Costs
    • Selling Cost: All costs inccured to secure customer order. Ex. advertising, shipping, sales travel, commiosns, sales salaries
    • Administrative Costs: All executive, organizational, and clerical costs. Ex. accounting, secretarial, public relations, costs for admimistration as a whole.
  26. Product Costs
    • Involing making a product
    • Raw materials, direct material, direct labor, OH
    • These are inventoriable because they go into inventory which reports to balance sheet
  27. Period Costs
    • All selling and administrative
    • Not directly with product
    • Goes under expense and reports to income statement.
  28. Prime Cost
    The sum of direct materials and direct labor
  29. Conversion Cost
    • Sum of direct labor and OH costs
    • These costs are inccured to convert product into finished product
  30. Raw Materials T-Accout
    • Debit: Beginning, purchases, end
    • Credit: Raw materials used
  31. Work in Process
    • Debit: RM, Direct Labor, OH
    • Credit: Cost of goods manufactured
  32. Finished Goods
    • Debit: COGM
    • Credit: Cost of goods Sold
  33. Merchandisers
    • Buy finished and see finished
    • Report one inventory # which is merchandise inventory
  34. Manufacters
    • Buy raw materials
    • Produce and sell finished goods
    • Report all 3 #'s, which are raw materials, WIP, Finished goods.
  35. Variable Cost
    • Change when activity changes
    • Variable cost per unit is constant
    • Ex: direct labor and materials
  36. Fixed Cost
    • Remains constant regardles changes in activity
    • Fixed cost moves when constant moves
    • Ex: Rent
  37. Direct Cost
    • Can be easily traced to specifed cost object
    • Ex: Direct materials and labor
  38. Differencial cost
    Cost and revenues that differ among alternatives
  39. Sunk Cost
    Cost that has already been incurrred that can not be changed by an dicision made now or in the future
  40. Chatper 3
  41. Process Costing
    • Produces many units of single product for long period
    • Unit Product cost=Total manufactoring/total units produced
  42. Job order
    • Many different products are produced
    • Costs are traced and alocated to jobs
  43. Bill of Materials
    Document that lists type and quantity of each type of direct material needed to complete a unit of product
  44. Materals requuisition form
    Detailed source document that specifies type and materal drawn from storeroom and identifies job to be charged
  45. Predetermined Overhead rate
    Divide total estimated O/H cost by estimated allocation base
  46. Overhead Application
    The money to appply is rate *amount of allation base
  47. Cost Driver
    A factor, MH, beds occupied, that cause Drive OH costs
  48. Manufactoring Costs
    Selling and administrative costs should be treaed as period espenses and charges directly to income sttement