Accounting Fundamentals: Managerial Accounting Concepts
1. Activity-Based Costing: allocating a company's overhead to those items which
actually use them
2. Breakeven Point: point at which a company's revenue covers cost; beyond the
breakeven point,revenue brings profit for each unit sold
3. Contribution Margin: cost accounting concept which allows a company to
determine the profitability of individual products
4. Conversion Cost: all cost incurred by a company to convert raw material into a
finished product
5. Cost Allocation: process of identifying, aggregating and assigning cost to cost
objects among a company's departments or inventory items
6. Cost Drivers: activities or events which cause a business to incur cost
7. Cost Volume Profit: analysis of how a company's profit changes as volume
changes
8. Job Order Costing: company's cost accounting system which accumulates
manufacturing cost separately for each job
9. Labor Efficiency Variance: measures the company's ability to utilize labor in
accordance with expectation
10. Labor Rate Variance: measures the company's difference between actual
and expected cost of labor
11. Linear Regression: business model uses one independent variable (X) to
explain and/or predict the outcome of a dependent variable (Y)
12. Manufacturing Overhead: all of a company's production cost except for direct
labor and direct material
13. Material Yield Variance: difference between the actual amount of material
used by a company and the standard amount expected to be used
14. Overhead Rate: total indirect cost of a company for a specific reporting period,
divided by an allocation measure
15. Period Cost: any cost which cannot be capitalized by a company into a
prepaid expense, inventory or fixed asset
16. Prime Cost: sum of all direct costs of a company such as direct labor, direct
materials and any other direct costs
17. Process Costing: method of collecting and assigning a company's
manufacturing cost to the unit produced
18. Project Costing: single overhead rate which is applied to each job or in each
department of a company
19. Purchase Price Variance: actual price paid for materials used in a company's
production process, minus the standard cost, multiplied by the number of units
used 20. Selling Price Variance: difference between actual and expected
revenue which is caused by a change in the price of a product or service
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1. Activity-Based Costing: allocating a company's overhead to those items which
actually use them
2. Breakeven Point: point at which a company's revenue covers cost; beyond the
breakeven point,revenue brings profit for each unit sold
3. Contribution Margin: cost accounting concept which allows a company to
determine the profitability of individual products
4. Conversion Cost: all cost incurred by a company to convert raw material into a
finished product
5. Cost Allocation: process of identifying, aggregating and assigning cost to cost
objects among a company's departments or inventory items
6. Cost Drivers: activities or events which cause a business to incur cost
7. Cost Volume Profit: analysis of how a company's profit changes as volume
changes
8. Job Order Costing: company's cost accounting system which accumulates
manufacturing cost separately for each job
9. Labor Efficiency Variance: measures the company's ability to utilize labor in
accordance with expectation
10. Labor Rate Variance: measures the company's difference between actual
and expected cost of labor
11. Linear Regression: business model uses one independent variable (X) to
explain and/or predict the outcome of a dependent variable (Y)
12. Manufacturing Overhead: all of a company's production cost except for direct
labor and direct material
13. Material Yield Variance: difference between the actual amount of material
used by a company and the standard amount expected to be used
14. Overhead Rate: total indirect cost of a company for a specific reporting period,
divided by an allocation measure
15. Period Cost: any cost which cannot be capitalized by a company into a
prepaid expense, inventory or fixed asset
16. Prime Cost: sum of all direct costs of a company such as direct labor, direct
materials and any other direct costs
17. Process Costing: method of collecting and assigning a company's
manufacturing cost to the unit produced
18. Project Costing: single overhead rate which is applied to each job or in each
department of a company
19. Purchase Price Variance: actual price paid for materials used in a company's
production process, minus the standard cost, multiplied by the number of units
used 20. Selling Price Variance: difference between actual and expected
revenue which is caused by a change in the price of a product or service
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