Managerial Accounting Tools
This costing method tracks costs by individual job and is used for customized orders.
What is Job Order Costing?
This budgeting method uses different activity levels to evaluate performance.
What is a Flexible Budget?
What are notes receivable?
Notes receivable are promissory notes that a business accepts from customers.
What is and define managerial accounting?
Managerial accounting is a branch of accounting focused on providing financial information internally to help managers make informed decisions about operations and planning.
The difference between a static and flexible budget is that a flexible budget...
...adjusts based on actual activity levels.
What is the normal balance of an assets account?
The debit side of the T account is the normal
How would you start the indirect method of accounting?
Starts with the net income and then makes adjustments to arrive at the cash flow from operating activities.
In CVP analysis, this is the point where total revenue equals total cost.
What is the Break-Even Point?
What is the accounting equation, and how is it normally stated?
It is normally stated as: Assets = Liabilities + Owner's Equity
What is the debt equity ratio?
total debt/ total shareholders equity
What is the Labor Efficiency Variance?
This variance measures the difference between the actual hours worked and the standard hours allowed, multiplied by the standard rate.
What is Selling Price per Unit minus Variable Cost per Unit?
This is the formula used to calculate the contribution margin per unit.
How do you calculate cost of goods manufactured?
To calculate the Cost of Goods Manufactured, you must add direct materials used, direct labor, and this cost to total manufacturing costs.
What is the times interest earned ratio?
Earnings before interest and taxes divided by total interest expense
What is the difference between traditional costing and ABC systems?
Traditional costing systems allocate overhead costs using a single predetermined rate, often based on direct labor hours or machine hours. In contrast, Activity-Based Costing (ABC) systems assign overhead costs to products based on the activities involved in their production, using multiple cost drivers.
What is the costing method if a company experiences rising prices during the year and this will result in the highest ending inventory value?
What is FIFO (First-In, First-Out)?
What is Cost-Plus Pricing?
This pricing method adds a fixed percentage or amount to the cost of producing a product to determine its selling price.
What is the asset turnover ratio?
Net sales/ average total assets