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Budgeting - Answer the process of planning future business actions and expressing them as formal plans budget - Answer a formal statement of a company’s plans, expressed in monetary terms- shorter periods Budgetary control process - Answer refers to management's use of budgets to monitor and control a company's operations. 1. Develop budget 2. Compare results to budget 3. Take action 4. Set new plans 5. Repeat Benefits of Budgeting - Answer planning,...

Incremental costs - Answer costs that are different under alternative choices. costs that are the same under either motion are not incremental and are not relevant Relevant benefits - Answer incremental reward from choosing one option over the other Profit - Answer Rev - FC - VC = profit (Fc-VC)= expenses What costs matter when making decisions about Product Mix with Constrained Sources - Answer - SP - DM - DL - CM - demand - profit What costs matter wh...

What three accounts are affected when a company issue shares of stock? - Answer Cash (+), Common Stock (+) Additional Paid in Capital (+) What accounts are affected when a company reacquires shares of its own stock? - Answer Cash (-) Treasury Stock (+) Cash Flows Statement broken down into what three sections? - Answer Cash Flows from operating activities, investing, and financing Cash flows From operating Activities includes: - Answer 1.Net income, tments for ...

depreciation expense - Answer how much value in my buildings and equipment has been used up this year inventory - Answer what i plan to sell to my customers in the future cost of goods sold - Answer the cost of all the stuff i sold to my customers this year wages expense - Answer how much my employees earned this week and have already been paid for accounts payable - Answer what i owe my suppliers job order - Answer cost system; when a job is co...

common costs - Answer costs of operating a facility, activity, or like cost object that is shared by two or more users they are used because each user obtains a lower cost by sharing than if each user acted alone discounted price standalone method - Answer determines the weights for cost allocation by considering each cost object as a separate entity; its a pro-rata method (by %), as if the users are each using the common item separately incremental method - Answer rank...

variable costing - Answer -where DM, DL, and variable OH costs are included in product costs -fixed is in period costs -useful in managerial but not allowed in financial absorption costing - Answer -where DM, DL, variable OH, fixed OH are included in product costs -this method is required for financial GAAP -can result in misleading product costs information and poor managerial decisions When is fixed OH expensed in Variable costing - Answer -expensed at time of unit...

financial accounting users of info - Answer general public investors creditors employees managers financial accounting types of info - Answer audited financial statements -- income, balance, cash flows other public findings -- press releases, quarterly updates, managers discussion and analysis financial accounting purpose of info - Answer to capture company performance financial accounting rules - Answer GAAP managerial accounting users of info - Answ...

tangible assets - Answer physical assets, such as real estate and automobiles, that can be held for either consumption or investment purposes Depreciation Expense - Answer The portion of the cost of a fixed asset that is recorded as an expense each year of its useful life. types of depreciation - Answer - straight-line - units of production - double declining balance

Long-Lived Assets - Answer resources owned by a business that enable it to produce the goods or services that are sold to customers. Ex: machines, equipment, vehicles Capitalize - Answer To record a cost as an asset, rather than an expense. Ordinary repairs and maintenance - Answer expenditures for routine operating upkeep of long-lived assets; they are recorded as expenses Extraordinary repairs - Answer expenditures that extend the useful ife of a tangible ass...

Types of employee Fraud - Answer corruption, asset misappropriation, financial statement fraud fraud triangle - Answer opportunity, incentive, rationalization Sarbanes-Oxley Act (SOX) purpose - Answer to reduce fraud amongst public companies Requirements and Goals of SOX - Answer counteract incentives, reduce opportunities, encourage honesty counteract incentives - Answer those who willfully misrepresent financial results face stiff penalties, including ...

Major advantage of the corporate form of business - Answer -the ease of raising capital as both large and small investors can participate in corporate ownership -simple to become an owner -easy to transfer ownership -provides limited liability Because a corporation is a separate legal entity, it can... - Answer -own assets -incur liabilities -sue and be sued -enter into contracts Stockholder benefits - Answer -voting rights -dividends -residual claims -preemptiv...