MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES 2025
C213 Accounting for Decision Makers (2025
Update) – Accurate Test Bank Q&A for VAC2
Terms
Managerial Accounting
The name given to accounting systems designed for internal users.
Manufacturing Overhead
All costs incurred in the manufacturing process other than direct materials and direct labor.
Margin
The profitability of each dollar in sales
Matching
The concept typically used in practice to determine when an expense should be recognized
Materiality
The question of whether an item is large enough to make any difference to anyone
Method
A method of segregating the fixed and variable components of a mixed cost by plotting on total costs at
several activity levels and drawing a regression line through the points.
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
,MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES 2025
Mixed Costs
Costs that contain both variable and fixed costs components.
Multiple-step Income Statement
The multi-step income statement includes multiple sub-totals within the income statement.
Net Assets
Total assets minus total liabilities. In a sole proprietorship the amount of net assets is reported as
owner's equity. In a corporation the amount of net assets is reported as stockholders' equity.
Net Income
The accountant's attempt to summarize in one number the overall economic performance of a company
for a given period.
Net Loss
The difference between revenues and expenses. If revenues exceed expenses, net income results. If, on
the other hand, expenses exceed revenues, there will be a net loss
Non-cash Investing and Financing Activities
Some investing and financing activities affect a company's financial position but not the company's cash
flows during the period.
Non-controlling Interest
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
,MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES 2025
Arises when a corporation has subsidiaries that are not 100 percent owned by the corporation.
Notes to Financial Statements
These provide additional information pertaining to a company's operations and financial position and
are considered to be an integral part of the financial statements.
Number of Days' Sales in Inventories
Calculated by dividing average inventory by average daily cost of goods sold and is interpreted as the
average number of days of sales that can be made using only the supply of inventory on hand.
Operating Activities
All transactions relating to a company's delivering or producing its goods for sale and providing its
services
Deferred Income Tax Liability
The income tax expected to be paid in future years on income that has already been reported in the
income statement but which, because of the tax law, has not yet been taxed.
Derivative
A financial instrument, such as an option or a future, that derives its value from the movement of a
price, an exchange rate, or an interest rate associated with some other item.
Detective Controls
Internal control activities that are designed to detect the occurrence of errors and fraud.
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
, MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES 2025
Differential Costs
Future costs that change as a result of a decision; also called incremental or relevant costs.
Direct Costs
Costs that are specifically traceable to a unit of business or segment being analyzed.
Direct Labor
Wages paid to those who physically work on direct materials to transform them into a finished product
and are traceable to specific products.
Direct Materials
Materials that become part of the product and are traceable to it.
Direct Method
Reporting the information contained in the last column of the adjustment worksheet
Disclosure
Convey the details in a narrative note without ever including anything in the financial statements
themselves.
Discontinued Operations
Report the Hughes results in a separate category called income from discontinued operations.
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
C213 Accounting for Decision Makers (2025
Update) – Accurate Test Bank Q&A for VAC2
Terms
Managerial Accounting
The name given to accounting systems designed for internal users.
Manufacturing Overhead
All costs incurred in the manufacturing process other than direct materials and direct labor.
Margin
The profitability of each dollar in sales
Matching
The concept typically used in practice to determine when an expense should be recognized
Materiality
The question of whether an item is large enough to make any difference to anyone
Method
A method of segregating the fixed and variable components of a mixed cost by plotting on total costs at
several activity levels and drawing a regression line through the points.
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
,MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES 2025
Mixed Costs
Costs that contain both variable and fixed costs components.
Multiple-step Income Statement
The multi-step income statement includes multiple sub-totals within the income statement.
Net Assets
Total assets minus total liabilities. In a sole proprietorship the amount of net assets is reported as
owner's equity. In a corporation the amount of net assets is reported as stockholders' equity.
Net Income
The accountant's attempt to summarize in one number the overall economic performance of a company
for a given period.
Net Loss
The difference between revenues and expenses. If revenues exceed expenses, net income results. If, on
the other hand, expenses exceed revenues, there will be a net loss
Non-cash Investing and Financing Activities
Some investing and financing activities affect a company's financial position but not the company's cash
flows during the period.
Non-controlling Interest
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
,MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES 2025
Arises when a corporation has subsidiaries that are not 100 percent owned by the corporation.
Notes to Financial Statements
These provide additional information pertaining to a company's operations and financial position and
are considered to be an integral part of the financial statements.
Number of Days' Sales in Inventories
Calculated by dividing average inventory by average daily cost of goods sold and is interpreted as the
average number of days of sales that can be made using only the supply of inventory on hand.
Operating Activities
All transactions relating to a company's delivering or producing its goods for sale and providing its
services
Deferred Income Tax Liability
The income tax expected to be paid in future years on income that has already been reported in the
income statement but which, because of the tax law, has not yet been taxed.
Derivative
A financial instrument, such as an option or a future, that derives its value from the movement of a
price, an exchange rate, or an interest rate associated with some other item.
Detective Controls
Internal control activities that are designed to detect the occurrence of errors and fraud.
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
, MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES 2025
Differential Costs
Future costs that change as a result of a decision; also called incremental or relevant costs.
Direct Costs
Costs that are specifically traceable to a unit of business or segment being analyzed.
Direct Labor
Wages paid to those who physically work on direct materials to transform them into a finished product
and are traceable to specific products.
Direct Materials
Materials that become part of the product and are traceable to it.
Direct Method
Reporting the information contained in the last column of the adjustment worksheet
Disclosure
Convey the details in a narrative note without ever including anything in the financial statements
themselves.
Discontinued Operations
Report the Hughes results in a separate category called income from discontinued operations.
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
