CH1 Managerial Accounting Questions and answers

Activity based costing (ABC) - a method of allocating overhead based on each products use of activities in making the product balanced scorecard - a performance-measurement approach that uses both financial and nonfinancial measures, tied to company objectives, to evaluate a companys operations in an integrated fashion board of directors - the group of officials elected by the stockholders of a corporation to formulate operating poicies, select officers, and otherwise manage the company cheif executive officer - corporate officer who has overall responsibilites to other coporate officers chief financial officer - corporate officer who is responsible for all of the accounting and finance issues of the company controller - financial officer responsible for a companys accounting records, system of internal control, and preparation of financial statements, tax returns, and internal reports cost of goods manufactured - total cost of work in process minus the cost of the ending work in process inventory direct labor - the work of factory employees that can be physically and dircectly associated with converting raw materials into finished goods direct materials - raw materials that can be physically and directly associaed with manufacturing the finished product enterprise resource planning (ERP) system - software that provides a comprehensive, centralized, integrated source of information used to manage all major business processesindirect labor - work of factory employees that has no physical associaion with the finished product, or for which it is impractical to trace the costs to the goods produced indirect materials - raw materials that do not physically become part of the finished product or cannot be traced because of their physical association with the finished product is to small just-in-time (JIT) inventory - inventory system in which goods are manufactured or purchased just in time for use