Can you name them all?
Do you know your formulas?
Concepts
Definitions
I'm feeling lucky.
100
A management approach that organizes resources such as people and machines around the flow of business processes and that only produces units in response to customer orders.
What is Lean Production
100
(Cost at high activity level - Cost at low activity level) ---------------------------------------------------------------- (High activity level - Low activity level)
What is the high-low method.
100
The range of activity within which the assumption that cost behavior is strictly linear is reasonably valid.
What is the relevant range.
100
A costing system in which a single product is produced either on a continuous basis of for long periods of time. All units of product are identical. Costs are accumulated by department. Unit costs are computed by department.
What is Process Costing
100
Actual overhead costs are debited to this account as they are incurred throughout the period.
What is the manufacturing overhead account.
200
Three types of manufacturing costs.
What are direct materials, direct labor, and manufacturing overhead.
200
Total Cost - (Variable Cost per Unit * Units Produced)
What is the total fixed cost
200
An income statement format that organizes costs by their behavior. Costs are separated into variable and fixed categories rather than being separated into product and period costs for external reporting purposes.
What is the contribution approach.
200
This accounting system focuses on reporting to those outside the organization, emphasizing financial consequences of past activities, objectivity, verifiability, precision, as well as company-wide reports. It must follow GAAP/IFRS and has mandatory external reports.
What is Financial Accounting.
200
Overhead is applied to this account using the predetermined overhead rate.
What is the Work In Process (WIP) account.
300
Three different types of controls.
What are preventive, detective, and corrective.
300
(Estimated total manufacturing overhead cost) --------------------------------------------------------- (Estimated total amount of the allocation base)
What is the predetermined overhead allocation rate.
300
A costing method that includes all manufacturing costs – direct materials, direct labor and both variable and fixed manufacturing overhead – in the cost of a product.
What is absorption costing.
300
An accounting system focused on reporting to managers inside the organization, emphasize decisions affecting the future, relevance, timeliness and segment reports. It is not required to follow GAAP/IFRS.
What is Managerial Accounting.
300
Direct Labor and Manufacturing overhead costs go to this account on the balance sheet.
What is Work in Process Inventory.
400
These two items make up the costs of goods sold.
What are the finished goods cost and manufacturing overhead costs.
400
Sales - Variable Expenses ---------------------------- Contribution Margin - Fixed Expenses ---------------------------- Net Operating Income
What is a contribution income statement.
400
A costing system in which many different jobs are worked on during each period, each job having different production requirements. Costs are accumulated by individual jobs. Unit costs are computed by job on the job cost sheet.
What is Job-Order Costing.
400
The major business functions that add value to a company’s products and services, such as research and development, product design, manufacturing, marketing, distribution, and customer service.
What is the Value Chain.
400
(Units transferred into next department or finished goods) + (Equivalent units in ending work in process inventory) ------------------------------------------------------------------- ???
What is Equivalent units of production.
500
These five factors affect the Cost-Volume-Profit Analysis.
What are the selling price, sales volume, unit variable costs, total fixed costs, and mix of products sold.
500
(Total budgeted/actual sales − Break even sales) ---------------------------------------------------------- (Total budgeted/actual sales)
What is the margin of safety ratio.
500
On a CVP graph, if the total revenue line is above the total expense line, are you making/incurring a:
What is a profit.
500
This cost consists of direct labor costs and manufacturing overhead costs.
What is a Conversion Cost.
500
(beginning WIP inventory + cost added during the period) ------------------------------------------------------------------- (Equivalent units of production)
What is the Cost per Equivalent Unit.
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