Managerial Accounting

all executive, organizational, and clerical costs associated with the general management of an organization rather than with manufacturing or selling

A detailed plan for the future, usually expressed in formal quantitative terms.

A cost that is incurred to support a number of costs objects but that cannot be traced to them individually. for example, the wage cost of the pilot of a 747 airliner is a ________of all the passengers on the aircraft. without the pilot, there would be no flight and no passengers. but no part of the pilot's wage is caused by any one passenger taking the flight.

The process of instituting procedures and then obtaining feedback to ensure that all parts of the organization are functioning effectively and moving toward overall company goals.

the member of the top management team who is responsible for providing relevant and timely data to managers and for preparing financial statements for external users. the _______ reports to the CFO.

Actions taken to help ensure that the plan is being followed and is appropriately modified as circumstances change.

Direct labor cost plus manufacturing overhead cost (MOH)

The way in which a cost reacts to changes in the level of activity

Anything for which cost data are desired. Examples of ____________ are products, customers, jobs, and parts of the organization such as departments or divisions.

The manufacturing costs associated with the goods that were finished during the period

A difference in costs between two alternatives.

The difference in revenue between two alternatives

A cost that can be easily and conveniently traced to a specified cost object

Mobilizing people to carry out plan and run routine operations.

Factory labor costs that can be easily traced to individual units of product. also called touch labor.

Materials that become an integral part of a finished product and whose costs can be conveniently traced to it.

Accounting and other reports that help managers monitor performance and focus on problems and/or opportunities that might otherwise go unnoticed

The phase of accounting concerned with providing information to stockholders, creditors, and others outside the organization.

Units of product that have been completed but not yet sold to customers.

A cost that remains constant, in total, regardless of changes in the level of activity within the relevant range. if a ______ is expressed on a per unit basis, it varies inversely with the level of activity.

An increase in cost between two alternatives.

A Cost that cannot be easily and conveniently traced to a specified cost object.

The labor costs of janitors, supervisors, materials handlers, and other factory workers that cannot be conveniently traced to particular products.

Small items of material such as glue and nails that may be an integral part of a finished product, but whose costs cannot be easily or conveniently traced to it.

Synonym for product cost

The phase of accounting concerned with providing information to managers for use within an organization

All manufacturing costs except direct materials and direct labor.

The potential benefit that is given up when one alternative is selected over another

A detailed reports comparing budgeted data to actual data

Costs that are taken directly to the income statement as expenses in the period in which they are incurred or accrued

Selecting a course of action and specifying how the action will be implemented

The flow of management activities through planning, directing and motivating, and controlling, and then back to planning again.

Direct materials cost plus direct labor cost

All costs that are involved in acquiring or making a product. in the case of manufactured goods, these costs consist of direct materials, direct labor, and manufacturing overhead.

Any materials that go into the final product

The range of activity within which assumptions about variable and fixed cost behavior are valid.

A schedule showing the direct materials, direct labor, and manufacturing overhead costs incurred during a period and the portion of those costs that are assigned to work in process and finished goods.

Any part of an organization that can be evaluated independently of other parts and about which the manager seeks financial data. examples include a product line, a sales territory, a division, or a department.

All costs that are incurred to secure customer orders and get the finished product or service into the hands of the customer.

A cost that has already been incurred and that cannot be changed by any decision made now or in the future.

A cost that varies, in total, in direct proportion to changes in the level of activity. a _______is constant per unit.

Units of product that are only partially complete