Managerial Accounting
This is considered the primary reason for the preparation of managerial accounting reports.
What is manager needs?
This type of system provides for a separate record of the cost of each particular quantity of product that passes through the factory.
What is a job order cost system?
These are the two categories of cost making up conversion costs.
What are direct labor and factory overhead?
Using multiple department factory overhead instead of a single plantwide factory overhead rate results in
What is a more accurate product cost?
These are the three most common cost behavior classifications
What are fixed costs, variable costs, and mixed costs?
In most business organizations, this is what the chief management accountant is called.
What is the controller?
Job order costing and process costing are considered this type of system.
What is cost accounting systems?
The three categories of manufacturing costs comprising the total cost of work in process are direct labor, direct materials, and
These are the two most common allocation bases for factory overhead
What are direct labor hours and machine hours?
The excess of sales revenue over variable cost
What is contribution margin?
These are costs that appear on both the income statement and balance sheet.
What are product costs?
The source document used as support for debiting Work in Process for direct materials is a
What is a materials requisition?
The portion of whole units that were completed with respect to either materials or conversion costs within a given accounting period.
What are equivalent units?
Dividing the cost budgeted for each activity pool by the estimated activity base for that pool is used to determine
What are activity rates?
This is the systematic examination of the relationships among selling prices, volume of sales and production, costs, and profits
What is cost-volume-profit analysis?
On the income statement of a manufacturing company, this replaces purchases in the cost of goods sold section of a retail company?
What is cost of goods manufactured?
Period costs are classified on the income statement as one of two expense accounts.
What are selling expenses or administrative expenses?
Equivalent production units are generally determined for
What are direct materials and conversion costs?
If selling and administrative expenses are allocated to different products, they should be reported on the income statement in this manner.
What is as a period cost?
This is represented by the point where the profit line intersects the horizontal axis on the profit-volume chart
What is the break-even point?
Factory heating and lighting cost are considered part of what cost.
What is factory overhead cost?
A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the controlling account in the general ledger to the controlling accounts for these two accounts.
What is Work in Process and Factory Overhead?
In a process cost system, the amount of work in process inventory is valued by
What is by allocating departmental costs between completed and partially completed units?
The three most common methods of allocating factory overhead using predetermined factory overhead rate
What are single plantwide, multiple production department, and activity-based costing?
When a business sells more than one product at varying selling prices, the business's break-even point can be determined as long as the number of products does not exceed