Managerial Accounting
A field of accounting that provides economic and financial information for managers and other internal users.
What is Managerial Accounting?
Manufacturing costs consists of these.
What are Direct Materials, Direct Labor, and Manufacturing Overhead?
Work of factory employees that has no physical association with the finished goods or is impractical to trace.
What is Indirect Labor?
Beginning finished goods inventory + cost of goods manufactured - ending finished goods inventory.
What is cost of goods sold?
Deals with what one should do in the business.
What are business ethics?
Both deal with economic events of a business and with events to be quantified and communicated to interested parties.
What is similarities of Financial and Managerial Accounting?
Basic materials used in manufacturing.
What are Raw Materials?
Costs that are indirectly associated with manufacturing the finished product.
What is Manufacturing Overhead?
Beginning work in process inventory + total manufacturing costs - ending work in progress inventory.
What is cost of goods manufactured?
Clarifies management responsibilities; requires certification from CEOs and CFOs; and substantially increases penalties for misconduct.
What is the Sarbanes-Oxley Act?
One is focused externally and one is focused internally.
What are differences in Financial and Managerial Accounting?
Raw materials that can be physically and directly associated with the finished product.
What are Direct Materials?
Includes manufacturing product costs and period costs.
What are all costs?
The three manufacturing inventory accounts on the balance sheet.
What are Raw Materials, Work in Progress, and Finished Goods?
Intentional misstatement of financial statements.
What is financial reporting fraud?
Management activities classifications.
What are Planning, Directing, and Controlling?
Raw materials that cannot be easily associated with the finished product.
What are Indirect Materials?
A necessary and integral part of producing a product; is recorded as inventory when incurred; and is not an expense until the finished goods inventory is sold.
What are Product Costs?
Total Estimated Facility Overhead divided by Total Activity Base.
What is Plantwide Overhead Rate?
Ineffective and unrealistic controls may result in this.
What is unethical behavior?
Looking ahead and establishing objectives.
What is Planning?
Work of employees directly associated with converting raw materials into finished goods.
What is Direct Labor?
Matched with revenue of a specific time period, charged to expenses when incurred, are non-manufacturing costs, and include selling and administrative expenses.
What are Period Costs?
Allocates overhead based on use of activities.
What is Activity-Based-Costing (ABC)?
Name a company who has committed financial fraud.
What is Enron? (Or Worldcom, Tyco, Phar-mor, etc.)