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All Correct Answers, Verified and Graded A+ Business - Accounting Specialization (Accounting 102)

All Correct Answers, Verified and Graded A Business - Accounting Specialization (Accounting 102) Business - Accounting Specialization (Accounting 102) 1. A method of cost measurement that uses the actual costs of direct materials, direct labor, and overhead to calculate a product or service unit cost. 2. Plan of action based on forecasted transactions, activities, and events; includes a forecasted income statement, statement of cash flows, and balance sheet 3. A comprehensive statement of how a company will achieve its strategic, tactical, and operating objectives 4. The costs of converting direct materials into a finished product; the sum of direct labor costs and overhead costs 5. Costs that can be conveniently and economically traced to a cost object 6. The process of generating and communicating accounting information about operating, investing, and financing activities for internal use by managers 7. The flow of manufacturing costs (direct materials, direct labor, and overhead) through the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory accounts into the Cost of Goods Sold account 8. A method of cost measurement that combines the actual direct costs of materials and labor with estimated overhead costs to determine a product or service unit cost 9. Short-term goals that outline expectations for the performance of day-to-day operations 10. Production-related costs that cannot be practically or conveniently traced to an end product or service 11. The costs of resources used during an accounting period that are not assigned to products or services. Also called non inventoriable costs or selling, administrative, and general expenses 12. The primary costs of production; the sum of direct materials costs and direct labor costs 13. A method of cost measurement that uses the estimated or standard costs of direct materials, direct labor, and overhead to calculate a product or service unit cost. 14. A method of assigning costs that calculates a more accurate product cost than traditional methods by categorizing all indirect costs by activity, tracing the indirect costs to those activities, and assigning those costs to products using a cost driver related to the cause of the cost 15. The process of assigning a collection of indirect costs to a specific cost object using an allocation base known as a cost driver 16. An activity base that causes a cost pool to increase in amount as the cost driver increases in volume 17. A product costing system that traces the costs of direct materials, direct labor, and overhead to a specific batch of products or a specific job order; used by companies that make unique or special-order products 18. A product costing system that combines parts of job order costing and process costing to create a hybrid system designed specifically for an organization's production process 19. A product costing system that traces the costs of direct materials, direct labor, and overhead to processes, departments, or work cells and then assigns the costs to the products manufactured by those processes, departments, or work cells; used by companies that produce large amounts of similar products or liquid products or that have long, continuous production runs of identical products 20. A set of procedures that is used to account for an organization's product costs and to provide timely and accurate unit cost information for pricing, cost planning and control, inventory valuation, and financial statement preparation. 21. The amount that remains after all variable costs are subtracted from sales 22. An examination of the cost behavior patterns that underlie the relationships among cost, volume of output, and profit 23. A three-step approach to separating a mixed cost into its variable and fixed components 24. A linear equation, Y = a(X) b, where Y is total mixed cost, a is the variable rate per unit, X is the units produced, and b is the fixed cost for the period. 25. The average annual level of operating capacity needed to meet expected sales demand 26. The upper limit of an organization's productive output capability, given its existing resources 27. Theoretical capacity reduced by normal and expected work stoppages 28. The proportion of each product's unit sales relative to the company's total unit sales 29. The maximum productive output for a given period in which all machinery and equipment are operating at optimum speed, without interruption. Also called ideal capacity 30. A straight line equation, Y = a(X), where Y is total variable cost, a is the variable rate per unit, and X is the units produced 31. The hourly direct labor rate that is expected to prevail during the next accounting period for each function or job classification 32. The difference between the standard direct labor rate and the actual direct labor rate multiplied by the actual direct labor hours worked. Also called direct labor spending variance 33. The expected labor time required for each department, machine, or process to complete the production of one unit or one batch of output. 34. A careful estimate of the cost of a specific direct material in the next accounting period. 35. The difference between the standard price and the actual price per unit multiplied by the actual quantity purchased. Also called direct materials spending or rate variance. 36. The difference between budgeted and actual fixed overhead costs. Also called budgeted fixed overhead variance. 37. The difference between budgeted fixed overhead costs and the overhead costs that are applied to production using the standard fixed overhead rate. 38. A method of cost control with three components: a standard, or predetermined, performance level; a measure of actual performance; and a measure of the difference, or variance, between standard and actual performance. 39. Realistic estimates of costs based on analyses of both past and projected operating costs and conditions. 40. The standard wage for direct labor multiplied by the standard hours of direct labor. 41. The standard price for direct materials multiplied by the standard quantity for direct materials 42. Total budgeted fixed overhead costs divided by an expression of capacity, usually normal capacity in terms of standard direct labor hours or units. 43. The difference between a standard cost and an actual cost. 44. The process of computing the differences between standard costs and actual costs and identifying the causes of those differences. 45. The difference between the standard direct labor hours allowed for good units produced and the actual direct labor hours worked multiplied by the standard direct labor rate. Also called direct labor quantity or usage variance. 46. The shareholder wealth created by an investment center; calculated as After-Tax Operating Income - [Cost of Capital in Dollars × (Total Assets - Current Liabilities)]. 47. A technique for determining a company's competitive advantage by comparing its performance with that of its closest competitors. 48. A measure of profitability that shows how efficiently assets are used to produce sales; calculated as Net Revenue ÷ Average Total Assets 49. A method of preparing profit center performance reports that classifies a manager's controllable costs as either fixed or variable and produces a variable costing income statement. 50. A traditional performance measure that takes into account both operating income and the assets invested to produce that income; calculated as Operating Income ÷ Assets Invested. 51. An organizational unit whose manager has been assigned the responsibility of managing a portion of the organization's resources. The five types of responsibility centers are a cost center, discretionary cost center, revenue center, profit center, and investment center 52. A measure of profitability that shows the percentage of each sales dollar that results in net income; calculated as Net Income ÷ Net Revenues (or Net Sales) 53. A summary of expected costs for a range of activity levels. Also called a variable budget. 54. An equation that determines the expected, or budgeted, cost for any level of output; calculated as (Variable Cost per Unit × Number of Units Produced) Budgeted Fixed Costs. 55. The linking of employee compensation to the achievement of measurable business targets. 56. Budgets that are prepared anew each period. All budget items must be justified; nothing is taken for granted 57. Budgets that are prepared once a year and do not change during the annual budget period. 58. A detailed plan of operating expenses, other than those related to production, that are needed to support sales and overall operations during an accounting period. 59. A detailed plan of anticipated manufacturing costs, other than direct materials and direct labor costs, that must be incurred to meet budgeted production needs. 60. The process by which management establishes an organization's long-term goals. 61. Budget plans used in daily operations 62. A set of operating budgets and a set of financial budgets that detail an organization's financial plans for a specific accounting period. 63. A projection of the cash that an organization will receive and the cash that it will pay out during an accounting period 64. A rolling 12-month budget that summarizes budgets for the next 12 months. Each month managers prepare a budget for that month, 12 months hence. 65. A detailed plan that summarizes the estimated costs of production during an accounting period 66. A detailed plan that estimates the direct labor hours needed during an accounting period and the associated costs. 67. A detailed plan that identifies the quantity of purchases required to meet budgeted production and inventory needs and the costs associated with those purchases

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