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To assist managers in decision making, planning, and control
What's the goal of managerial accounting?
DM + DL + OH
What's the formula for Total Product/Manufacturing Cost?
Selling Costs & Administrative Costs
What are the usual operating expenses/period costs' examples? What do operating expenses/period costs usually include?
Has historical orientation and can share with external users?
What are some of the financial accounting's features?
Gross margin is the revenue left over after you subtract your company's direct costs (i.e., the cost of producing or selling your goods or services) from your sales revenue. These direct costs are called the cost of goods sold (COGS).
What is gross margin?
How to get DM used?
DM Used= Beginning Inventory of Materials + Purchases - Ending Inventory of Materials
Explain DM, DL and OH(can give example)
DM is direct materials, usually ingredients/raw materials
DL is direct labor, like factory laborers
OH is manufacturing overhead, usually include indirect material and indirect labor
CONGRATS🎉
You get 300 points!!! YEAH!!!
;)
Gift Questions
Play Rock, Paper, Scissors with me
What's the difference between COGM and COGS
Hint: Manufactured & Sold; See formlua(Two Knowledge Points)
COGM: Focus on things completed in the manufacturing process/complete products & WIP
COGS: Focus on goods that are sold & Finished Goods
Can you explain COGS and Total Product/Manufacturing Cost? (Not about the formula; focus on the difference)
COGS:about complete products, products you manufactured
LIST three things you should do in SI sessions(hint:in my slides!)
Participation; Group Activity; Fill out attendance code; Ask any questions; Respect others; Do not send code to your friends...
What are six features of managerial accounting?
Internally focused, Emphasis on the Future, No Mandatory Rules, Financial & Nonfinancial Information, Broad & Multidisciplinary, Information is very detailed, including departments and aspects, generally not as a whole firm
Can you explain operating income by connecting all other formulas?
Starting from total manufacturing cost to COGM to COGS. Then use Sales Revenue - COGS to get GM. Then use GM - Operating Expenses to get operating income.
Special Challenge👊
In your group, each person says one word; the person next to them says the next word, until the whole group finishes saying a formula. And it should also be said correctly.