Managerial Accounting FINAL EXAM
Study online at https://quizlet.com/_95wwiw
1. Identify managers 3 primary responsibilities: Plan, Direct, and Control
2. Distinguish financial accounting from managerial accounting: external vs
internal perspective
3. Describe the role of the Institute of Management Accountants (IMA): US
professional association for management accountants
4. What are the IMA's ethical standards?: competence, confidentiality, integrity,
and credibility
5. service company: Sells intangible services. No inventory.
6. Merchandising Company: Resell tangible products bought from suppliers
7. Manufacturing Company: Convert raw materials into finished goods using labor,
plant, and equipment
8. Product Cost: direct materials, direct labor, manufacturing overhead (IM,IL,Oth-
er)
9. Period Costs: all costs that are not product costs
10. Manufacturing company financial statement includes:: Raw Materials Used,
Cost of Good Manufactured, Finished goods, and Cost of Goods Sold
11. Job Costing: used by companies to produce unique, customer-ordered prod-
ucts, or small batches of different products
12. Process Costing: Used by manufacturers who produce large numbers of iden-
tical units.
13. Predetermined Overhead Rate=: Total Estimated Overhead Cost/Total Esti-
mated Allocated Base
14. Allocated Overhead=: Predetermined Overhead Rate x Actual Amount of Allo-
cated Base
15. The cost of a job=: DM+ DL+ manufacturing overhead applied
16. IF: MOH Allocated < Actual MOH then:: -under allocated
-increase cost of goods sold
17. IF: MOH Allocated > Actual MOH then:: -over allocated
-Decrease Cost of Goods Sold
18. Activity Cost Allocation Rate=: Total Estimated Overhead Costs per activity /
Total Estimated Allocation Base per Activity
19. Allocated Overhead per activity=: Activity Allocation Rate x Actual Amount of
Allocation Base
20. fixed costs: do not change in total with volume but per unit amount changes
21. variable costs: change in total with volume but per unit amount does not change
22. mixed costs: change in total with volume but not proportionately
23. step costs: fixed over a small range of activities and then increase to a new fixed
level with changes in volume
24. Total Costs=: Variable Cost per Unit + Fixed Costs
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Study online at https://quizlet.com/_95wwiw
1. Identify managers 3 primary responsibilities: Plan, Direct, and Control
2. Distinguish financial accounting from managerial accounting: external vs
internal perspective
3. Describe the role of the Institute of Management Accountants (IMA): US
professional association for management accountants
4. What are the IMA's ethical standards?: competence, confidentiality, integrity,
and credibility
5. service company: Sells intangible services. No inventory.
6. Merchandising Company: Resell tangible products bought from suppliers
7. Manufacturing Company: Convert raw materials into finished goods using labor,
plant, and equipment
8. Product Cost: direct materials, direct labor, manufacturing overhead (IM,IL,Oth-
er)
9. Period Costs: all costs that are not product costs
10. Manufacturing company financial statement includes:: Raw Materials Used,
Cost of Good Manufactured, Finished goods, and Cost of Goods Sold
11. Job Costing: used by companies to produce unique, customer-ordered prod-
ucts, or small batches of different products
12. Process Costing: Used by manufacturers who produce large numbers of iden-
tical units.
13. Predetermined Overhead Rate=: Total Estimated Overhead Cost/Total Esti-
mated Allocated Base
14. Allocated Overhead=: Predetermined Overhead Rate x Actual Amount of Allo-
cated Base
15. The cost of a job=: DM+ DL+ manufacturing overhead applied
16. IF: MOH Allocated < Actual MOH then:: -under allocated
-increase cost of goods sold
17. IF: MOH Allocated > Actual MOH then:: -over allocated
-Decrease Cost of Goods Sold
18. Activity Cost Allocation Rate=: Total Estimated Overhead Costs per activity /
Total Estimated Allocation Base per Activity
19. Allocated Overhead per activity=: Activity Allocation Rate x Actual Amount of
Allocation Base
20. fixed costs: do not change in total with volume but per unit amount changes
21. variable costs: change in total with volume but per unit amount does not change
22. mixed costs: change in total with volume but not proportionately
23. step costs: fixed over a small range of activities and then increase to a new fixed
level with changes in volume
24. Total Costs=: Variable Cost per Unit + Fixed Costs
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