Statement of Cash Flows
The statement of cash flows helps users evaluate
What is the management of a company
An activity that provides financial and nonfinancial information to an organization's managers
What is managerial accounting
Costs that are moved from one department to another under a process costing system
What are transfer costs
What section changes when you choose the indirect method vs. the direct method of preparing a statement of cash flows?
What is the operating section
The managerial role that involves the day-to-day running of the business is the
What is directing function
One of the purposes of the statement of cash flows
What is predict the company's ability to pay debts
The users of managerial accounting information
Who are internal users: managers, employees, and other decision makers within the organization
The first step in calculating under a process costing system
What is determine the physical flow of units
Two methods of preparing a statement of cash flows
What are direct and indirect
Providing feedback about results after the end of a period
What is controlling
Included in the operating activities section
What are activities that create revenue or expenses
The three functions of managerial accounting
What are planning, controlling, and directing
A key idea in process costing that refers to the number of units that could have been started and completed during the period is known as
What are equivalent units of production
A system of accounting in which costs are accumulated and then measured per unit by combining costs per equivalent unit from various departments is
What is process costing
The process of setting goals is part of which managerial function
What is planning
When preparing a statement of cash flows using the indirect method, what do you do with depreciation expense?
What is add it back to net income in the operating activities section
The purpose of managerial accounting information
What is help managers make decisions
Under process costing, indirect labor and material costs are charged to
What is manufacturing overhead
Series of activities that add value to a company's products or services
What is the value chain
The process of applying overhead costs to individual products or processes
What is allocation
The three major categories included on the statement of cash flows
What are investing, operating, and financing activities
Three major components of a manufactured product
What are direct materials, direct labor and overhead
The combined costs of direct labor and factory overhead per equivalent unit in process costing
What are conversion costs
Rejects the notion of "good enough" and challenges managers and employers to improve business practices
What is continuous improvement
Comparing actual results to planned results
What is controlling