A306 final healy
role of accounting - CORRECT ANSWER-communication, help decision makers
analyze and report the costs and benefits of decision options
3 decision makers - CORRECT ANSWER-1. investors
2. creditors
3. regulators
planning in accounting - CORRECT ANSWER-establishing goals and how to
achieve them
controlling in accounting - CORRECT ANSWER-gather feedback and modify plan
make decisions in accounting - CORRECT ANSWER-selecting a course of action
management accounting vs. finacial accounting - CORRECT ANSWER-M
-inside company
-future focused
-Finacial and non financial
-decision based
-info generated as needed
-relevant
-pieces like a segment
F
-Outside company
-Past
-reported annually and quarterly
-objective, verifiable
-entire organization
Total Costs are - CORRECT ANSWER-Direct +Indirect
Direct Costs - CORRECT ANSWER-easily traceable to product (anything or anyone
that had to do with making the product)
Indirect Costs - CORRECT ANSWER-shared/ allocated (Anything that is apart of the
organization but didnt actually make the product)
MFG Costs - CORRECT ANSWER-DM, DL, MOH (aka Product Costs)
NON MFG Costs - CORRECT ANSWER-selling and administration expenses (aka
Period Costs)
, MFG and NON MFG Costs can be - CORRECT ANSWER-direct or indirect
Direct Costs are made up of - CORRECT ANSWER-DL, DM
Indirect Costs are made up of - CORRECT ANSWER-Mfg Overhead
Prime Costs - CORRECT ANSWER-DM +DL
Conversion Costs - CORRECT ANSWER-DL + MOH
DL with relation to prime and conversion - CORRECT ANSWER-can be both!
Balance Sheet reports only ---- Costs - CORRECT ANSWER-Product costs
Income Statement reports Both ----Costs - CORRECT ANSWER-Product and Period
Costs
Var Costs - CORRECT ANSWER-in total goes up or down, per unit stays the same
Fix Costs - CORRECT ANSWER-stays the same in total, per unit changes
Differential Costs - CORRECT ANSWER-differ between options relevant
Opportunity costs - CORRECT ANSWER-Potential of benefit next best option given
up
Sunk costs - CORRECT ANSWER-irrelevant
CM vs Income statement - CORRECT ANSWER-Income statement
-external
-cost function
CM statement
-internal
-cost behavior
Contribution Margin in my own words - CORRECT ANSWER-how much you make
after you cover your costs
selling lemonamed for $1 but it takes 50 cents to make you only make 50 cents
CVP uses blank Behavior to determine rev, expenses, and profits will react to
changes - CORRECT ANSWER-COST BEHAVIOR
role of accounting - CORRECT ANSWER-communication, help decision makers
analyze and report the costs and benefits of decision options
3 decision makers - CORRECT ANSWER-1. investors
2. creditors
3. regulators
planning in accounting - CORRECT ANSWER-establishing goals and how to
achieve them
controlling in accounting - CORRECT ANSWER-gather feedback and modify plan
make decisions in accounting - CORRECT ANSWER-selecting a course of action
management accounting vs. finacial accounting - CORRECT ANSWER-M
-inside company
-future focused
-Finacial and non financial
-decision based
-info generated as needed
-relevant
-pieces like a segment
F
-Outside company
-Past
-reported annually and quarterly
-objective, verifiable
-entire organization
Total Costs are - CORRECT ANSWER-Direct +Indirect
Direct Costs - CORRECT ANSWER-easily traceable to product (anything or anyone
that had to do with making the product)
Indirect Costs - CORRECT ANSWER-shared/ allocated (Anything that is apart of the
organization but didnt actually make the product)
MFG Costs - CORRECT ANSWER-DM, DL, MOH (aka Product Costs)
NON MFG Costs - CORRECT ANSWER-selling and administration expenses (aka
Period Costs)
, MFG and NON MFG Costs can be - CORRECT ANSWER-direct or indirect
Direct Costs are made up of - CORRECT ANSWER-DL, DM
Indirect Costs are made up of - CORRECT ANSWER-Mfg Overhead
Prime Costs - CORRECT ANSWER-DM +DL
Conversion Costs - CORRECT ANSWER-DL + MOH
DL with relation to prime and conversion - CORRECT ANSWER-can be both!
Balance Sheet reports only ---- Costs - CORRECT ANSWER-Product costs
Income Statement reports Both ----Costs - CORRECT ANSWER-Product and Period
Costs
Var Costs - CORRECT ANSWER-in total goes up or down, per unit stays the same
Fix Costs - CORRECT ANSWER-stays the same in total, per unit changes
Differential Costs - CORRECT ANSWER-differ between options relevant
Opportunity costs - CORRECT ANSWER-Potential of benefit next best option given
up
Sunk costs - CORRECT ANSWER-irrelevant
CM vs Income statement - CORRECT ANSWER-Income statement
-external
-cost function
CM statement
-internal
-cost behavior
Contribution Margin in my own words - CORRECT ANSWER-how much you make
after you cover your costs
selling lemonamed for $1 but it takes 50 cents to make you only make 50 cents
CVP uses blank Behavior to determine rev, expenses, and profits will react to
changes - CORRECT ANSWER-COST BEHAVIOR
