Principles of Financial and Managerial Accounting - D196 WGU Exam Already Passed!!

the production budget - Sales budget + ending finished goods inventory - beginning finished goods inventory direct materials production budget - Production budget × direct materials per unit the direct materials purchases budget - Direct materials production budget + ending direct materials inventory - beginning direct materials inventory Cash collected from customers - (current period revenue × current period collection rate) + cash collected from previous period sales Cash payments to suppliers - (current period purchases × current period payment rate) + cash paid on previous period purchases Cost Variance - Difference between actual costs and budgeted costs Contribution Margin - = Sales Revenue - Variable Costs The difference between total sales and variable costs; the portion of sales revenue available to cover fixed costs and provide a profit. Target Income - = Sales Revenue - Variable Costs - Fixed Costs A profit level desired by management. At break-even - Target income = 0 Sales Revenue - = Sales Price x Number of Units Variable Costs - = Variable Cost per Unit x Number of Units Costs that change in total in direct proportion to changes in activity level.Variable Cost Ratio x Sales Revenue - Variable Costs Unit-level activities - Activities that take place each time a unit of product is produced. Batch-level activities - Activities that take place in order to support a batch or production run, regardless of the size of the batch. Product-line Activities - Activities that take place in order to support a product line, regardless of the number of batches or individual units produced. cost pool - Total cost being generated by a specific overhead cost activity. cost driver - A numerical measure used to reflect the amount of a specific cost that is associated with a particular activity Activity rate - The amount of the estimated cost pool divided by the estimated number of cost driver events How do expenses impact the accounting equation? - Expenses decrease owners' equity Purpose of the accounting cycle? - To turn information about transactions into financial statements How is gross profit computed? - Sales minus cost of good sold Which type of account is retained earnings? - Equity How does a classified balance sheet provide useful info to a decision maker? - It distinguishes between current and long-term assets What are the three primary functions that company managers use managerial accounting info for? - Planning, controlling, evaluatingHow could a period cost be reported in an income statement? - As an admin expense How are the wages of the cashiers classified in a merchandising company? - Selling expense What is the label given to the quantity computed as estimated level of activity - Predetermined overhead rate In a job order costing system, what is the proper accounting for a product cost? - It is reported as a part of cost of goods sold Which item is a period cost? - Utility bills to heat the headquarters building Accounting System - The procedures and processes used by a business to analyze transactions, handle routine bookkeeping tasks, and structure information so it can be used to evaluate the performance and health of the business