ACCT 202
Study online at https://quizlet.com/_2gu2tz
1. Managerial ac- Provides economic and financial information for managers and other internal
counting users.
2. Similarities be- •Both deal with the economic events of a business.
tween Manageri-
al & Financial ac- •Both require that a company's economic event be quantified.
counting
3. Differences be-
tween Manageri-
al & Financial ac-
counting
4. Planning •Maximize short-term profit and market share.
•Commit to environmental protection and social programs.
•Add value to the business. (Value is usually measured by the price of the compa-
ny's stock and by the potential selling price of the company)
5. Directing •Coordinate diverse activities and human resources.
•Implement planned objectives.
•Provide incentives to motivate employees
•Hire and train employees.
•Produce a smooth-running operation.
6. Controlling •Keeping activities on track.
•Determine whether goals are met.
•Decide changes needed to get back on track.
•May use an informal or formal system of evaluations.
7. Manufacturing Consists of activities and processes that convert raw materials into finished goods.
•vs. Merchandising, which sells products in the form in which they are purchased
, ACCT 202
Study online at https://quizlet.com/_2gu2tz
Manufacturing costs are classified as *direct materials*, *direct labor*, and *man-
ufacturing overhead*.
8. Raw Materials The basic materials and parts used in the manufacturing process
9. Direct Materials Raw materials that can be physically and directly associated with manufacturing
(DM) the finished product.
•Example: flour in the baking of bread, syrup in the bottling of soft drinks, steel in
the making of automobiles, seats installed in a car made by Toyota.
10. Indirect Materials Raw materials that do not physically become part of the finished product
•Example: polishing compounds used by Current Designs for the finishing touches
on kayaks
11. Direct Labor (DL) Work of factory employees that can be physically and directly associated with
converting raw materials into finished goods.
•Example: wages paid to automobile assembly workers at Toyota.
12. Indirect Labor Refers to the work of employees that has no physical association with the finished
product or for which it is impractical to trace costs to the goods produced.
•Example: wages of factory maintenance people, factory time-keepers, and factory
supervisors.
13. Manufacturing •Costs that are indirectly associated with manufacturing the finished product.
Overhead (MOH) •Includes all manufacturing costs *except* direct materials and direct labor.
•Example: *indirect materials*, *indirect labor*, depreciation on factory buildings
and machines, and insurance, taxes, and maintenance on factory facilities.
•Also called factory overhead, indirect manufacturing costs, or burden.
Study online at https://quizlet.com/_2gu2tz
1. Managerial ac- Provides economic and financial information for managers and other internal
counting users.
2. Similarities be- •Both deal with the economic events of a business.
tween Manageri-
al & Financial ac- •Both require that a company's economic event be quantified.
counting
3. Differences be-
tween Manageri-
al & Financial ac-
counting
4. Planning •Maximize short-term profit and market share.
•Commit to environmental protection and social programs.
•Add value to the business. (Value is usually measured by the price of the compa-
ny's stock and by the potential selling price of the company)
5. Directing •Coordinate diverse activities and human resources.
•Implement planned objectives.
•Provide incentives to motivate employees
•Hire and train employees.
•Produce a smooth-running operation.
6. Controlling •Keeping activities on track.
•Determine whether goals are met.
•Decide changes needed to get back on track.
•May use an informal or formal system of evaluations.
7. Manufacturing Consists of activities and processes that convert raw materials into finished goods.
•vs. Merchandising, which sells products in the form in which they are purchased
, ACCT 202
Study online at https://quizlet.com/_2gu2tz
Manufacturing costs are classified as *direct materials*, *direct labor*, and *man-
ufacturing overhead*.
8. Raw Materials The basic materials and parts used in the manufacturing process
9. Direct Materials Raw materials that can be physically and directly associated with manufacturing
(DM) the finished product.
•Example: flour in the baking of bread, syrup in the bottling of soft drinks, steel in
the making of automobiles, seats installed in a car made by Toyota.
10. Indirect Materials Raw materials that do not physically become part of the finished product
•Example: polishing compounds used by Current Designs for the finishing touches
on kayaks
11. Direct Labor (DL) Work of factory employees that can be physically and directly associated with
converting raw materials into finished goods.
•Example: wages paid to automobile assembly workers at Toyota.
12. Indirect Labor Refers to the work of employees that has no physical association with the finished
product or for which it is impractical to trace costs to the goods produced.
•Example: wages of factory maintenance people, factory time-keepers, and factory
supervisors.
13. Manufacturing •Costs that are indirectly associated with manufacturing the finished product.
Overhead (MOH) •Includes all manufacturing costs *except* direct materials and direct labor.
•Example: *indirect materials*, *indirect labor*, depreciation on factory buildings
and machines, and insurance, taxes, and maintenance on factory facilities.
•Also called factory overhead, indirect manufacturing costs, or burden.
