Managerial Accounting Flashcards Exam
Question And Answers 2024
Accounting - correct answers✅the process of keeping
the financial score for the entity
relevant cost: - correct answers✅the cost that differs
between two alternatives
sunk cost: - correct answers✅cash already spent;
irrelevant to decision making because cash does not
exist, does not effect anything we do
break even is when revenue equals - correct
answers✅cost
differential analysis: - correct answers✅analyzing the
difference between two alternatives.
Traceable Fixed Cost - correct answers✅A fixed cost
that is able to be traced back to some sort of cost object
or business segment
Common Fixed Cost - correct answers✅A cost that
cannot be traced back to a cost object or business
segment.
,Managerial Accounting Flashcards Exam
Question And Answers 2024
relevant range: - correct answers✅range in which
costs are linear
market price: - correct answers✅price paid by willing
buyer/seller
Pricing - correct answers✅company needs to produce
and get an adequate return
cost plus pricing - correct answers✅price is a markup
on the cost (cost base + markup %)
Variable cost pricing does not cover FC, - correct
answers✅makes contribution to FC
importance of transfer pricing: - correct
answers✅allows manipulation and moving of profits to
low tax environments.
Financial Accounting vs Managerial Accounting - correct
answers✅Financial: external users of financial
statements; follow GAAP
Managerial: internal users; no GAAP
,Managerial Accounting Flashcards Exam
Question And Answers 2024
The Rule Makers - correct answers✅SEC: Securities
and Exchange Commission
IRS: Internal Revenue Service
FASB: Financial Accounting Standards Board
GAAS: Generally Accepted Auditing Standards
GAAP: Generally Accepted Accounting Principles
CPA: Certified Public Accountant
AICPA: American Institute of Certified Public Accountants
Controller: - correct answers✅typically the top
accounting person in a company
The Security and Exchange Act of 1934 - correct
answers✅created the Securities and Exchange
Commission (SEC)
authorized the SEC to set accounting rules
SEC delegated the rule to a private non-profit industry
group
(now) FASB - Financial Accounting Standards Board
Entity - correct answers✅organizational element about
which accounting information is collected
, Managerial Accounting Flashcards Exam
Question And Answers 2024
all costs are - correct answers✅historical
Objectivity - correct answers✅arm's length
negotiation: arm's length transaction is to ensure that
both parties in the deal are acting in their own self
interest and are not subject to any pressure or duress
from the other party. both parties are on equal footing.
Going Concern - correct answers✅company will be
around long enough to use up assets and pay all liabilities
Revenue Recognition - correct answers✅Earned:
rendered goods and services
Recognized: expectation of payment
Matching: - correct answers✅match expenses with
revenue in the period they occur
Consistency: - correct answers✅follow the same
procedures each accounting period so can compare
financial statements
Conservatism: - correct answers✅if multiple options
exist, pick the least favorable
Question And Answers 2024
Accounting - correct answers✅the process of keeping
the financial score for the entity
relevant cost: - correct answers✅the cost that differs
between two alternatives
sunk cost: - correct answers✅cash already spent;
irrelevant to decision making because cash does not
exist, does not effect anything we do
break even is when revenue equals - correct
answers✅cost
differential analysis: - correct answers✅analyzing the
difference between two alternatives.
Traceable Fixed Cost - correct answers✅A fixed cost
that is able to be traced back to some sort of cost object
or business segment
Common Fixed Cost - correct answers✅A cost that
cannot be traced back to a cost object or business
segment.
,Managerial Accounting Flashcards Exam
Question And Answers 2024
relevant range: - correct answers✅range in which
costs are linear
market price: - correct answers✅price paid by willing
buyer/seller
Pricing - correct answers✅company needs to produce
and get an adequate return
cost plus pricing - correct answers✅price is a markup
on the cost (cost base + markup %)
Variable cost pricing does not cover FC, - correct
answers✅makes contribution to FC
importance of transfer pricing: - correct
answers✅allows manipulation and moving of profits to
low tax environments.
Financial Accounting vs Managerial Accounting - correct
answers✅Financial: external users of financial
statements; follow GAAP
Managerial: internal users; no GAAP
,Managerial Accounting Flashcards Exam
Question And Answers 2024
The Rule Makers - correct answers✅SEC: Securities
and Exchange Commission
IRS: Internal Revenue Service
FASB: Financial Accounting Standards Board
GAAS: Generally Accepted Auditing Standards
GAAP: Generally Accepted Accounting Principles
CPA: Certified Public Accountant
AICPA: American Institute of Certified Public Accountants
Controller: - correct answers✅typically the top
accounting person in a company
The Security and Exchange Act of 1934 - correct
answers✅created the Securities and Exchange
Commission (SEC)
authorized the SEC to set accounting rules
SEC delegated the rule to a private non-profit industry
group
(now) FASB - Financial Accounting Standards Board
Entity - correct answers✅organizational element about
which accounting information is collected
, Managerial Accounting Flashcards Exam
Question And Answers 2024
all costs are - correct answers✅historical
Objectivity - correct answers✅arm's length
negotiation: arm's length transaction is to ensure that
both parties in the deal are acting in their own self
interest and are not subject to any pressure or duress
from the other party. both parties are on equal footing.
Going Concern - correct answers✅company will be
around long enough to use up assets and pay all liabilities
Revenue Recognition - correct answers✅Earned:
rendered goods and services
Recognized: expectation of payment
Matching: - correct answers✅match expenses with
revenue in the period they occur
Consistency: - correct answers✅follow the same
procedures each accounting period so can compare
financial statements
Conservatism: - correct answers✅if multiple options
exist, pick the least favorable
