A financial plan that managers use to coordinate a business's activities.
What is a budget
100
When managers intentionally understate expected revenues or overstate expected expenses to increase chances of receiving favorable performance evaluations
What is budgetary slack
100
ABC stands for in cost management
What is Activity-Based Costing
100
Target pricing formula
What is revenue at market price - desired profit = target full product cost
100
A variable cost
What is a cost that increases or decreases in total in direct proportion to increase or decrease in the volume of activity
200
Primary users of managerial accounting
What is internal such as managers and employees
200
A budget prepared for only one level of sales volume
What is a static budget
200
The amount customers are willing to pay for a product or service
What is a target price
200
A constraint
What is a factor that restricts the production or sale of a product
200
A fixed cost
What is a cost that remains the same
300
Managerial accounting definition
What is the type of accounting that focuses on the accounting tools managers use to run a business.
300
The budget that details how the business expects to go from the beginning cash balance to the desired ending cash balance
What is the cash budget
300
Full product cost
What is the cost to develop, produce and deliver the product or service
300
The benefit given up by choosing an alternative course of action
What is an opportunity cost
300
A mixed cost
What is a cost that has both fixed and variable components
400
Prime costs
What is direct materials plus direct labor
400
Interest Expense Formula
What is principal times rate times time = interest expense
400
Three different types of cost management systems
What are activity-based. just-in-time, and quality management systems
400
Cost-plus pricing formula
What is full product cost + desired profit = cost-plus price
400
Contribution margin formula
What is net sales revenue - variable costs
500
Three categories that product costs are classified
What is direct materials, direct labor and manufacturing overhead
500
The three budgets that are included in the master budget
What are the operating budget, capital expenditures budget and financial budget
500
Four types of quality costs
What are prevention costs, appraisal costs, internal failure costs and external failure costs
500
A cost that was incurred in the past and cannot be changed regardless of which future action is taken
What is a sunk cost
500
The break even point
What is the sales level at which operating income is zero