Managerial Accounting - Accurate Solutions For All
Questions
Marginal Cost Right Ans - Extra cost of producing one additional unit of
production.
Unit Cost Right Ans - The average production cost per unit
Continuous Improvement Right Ans - Ongoing small, incremental
improvements in all parts of an organization
Kaizan Right Ans - short term approach to enhancing efficiency that
focuses on improving an existing process or an activity within a process
Direct Cost Right Ans - a cost that can be easily and conveniently traced to
a specified cost object.
Direct Labor Right Ans - the labor specifically used in the creation of a
good.
Direct Materials Right Ans - the materials specifically used in the creation
of a good.
Indirect Cost Right Ans - a cost that cannot be easily and conveniently
traced to a specified cost object, a part of manufacturing overhead.
Manufacturing Overhead Right Ans - everything that is indirectly involved
with the production of a good. not direct materials and not direct labor
Product/ Inventorial Cost Right Ans - costs that are a necessary and
integral part of producing the finished product. shows up on the balance sheet
until product is sold.
Period Cost Right Ans - all non-manufacturing costs, deducted as an
expense in the accounting period in which they are incurred.
Variable Cost Right Ans - a cost that rises or falls depending on how much
is produced. they are constant.
, Fixed Cost Right Ans - a cost that does not change, no matter how much of a
good is produced
Differential Cost Right Ans - A relevant costs: costs that can be avoided
when alternatives are changed.
Opportunity Cost Right Ans - Cost of the next best alternative use of money,
time, or resources when one choice is made rather than another
Sunk Cost Right Ans - Any cost that has already been incurred and that
cannot be changed by any decision made now or in the future. It is never
relevant
TQM Right Ans - Total Quality Management: A process developed by Dr. W.
Ed Deming to increase productivity through quality control techniques.
Theory of Constraints Right Ans - A specific approach used to identify and
manage constraints in order to achieve the company's goals.
Gross Margin a.k.a. Gross Profit Right Ans - Net Sales - COGS
Linear Equation Right Ans - Y= a+bx
Y - total mixed cost
a - fixed costs
b - y intercept
Committed Fixed Cost Right Ans - Cannot be changed or eliminated with
ease.
Discretionary Fixed Cost Right Ans - Can change/eliminate the fixed cost.
Contribution Margin Right Ans - Amount of money available after
subtracting your variable costs. Sales Revenue-Variable Cost
Prime Costs Right Ans - Direct Materials + Direct Labor
Conversion Costs Right Ans - Direct Labor + Manufacturing Overhead
Questions
Marginal Cost Right Ans - Extra cost of producing one additional unit of
production.
Unit Cost Right Ans - The average production cost per unit
Continuous Improvement Right Ans - Ongoing small, incremental
improvements in all parts of an organization
Kaizan Right Ans - short term approach to enhancing efficiency that
focuses on improving an existing process or an activity within a process
Direct Cost Right Ans - a cost that can be easily and conveniently traced to
a specified cost object.
Direct Labor Right Ans - the labor specifically used in the creation of a
good.
Direct Materials Right Ans - the materials specifically used in the creation
of a good.
Indirect Cost Right Ans - a cost that cannot be easily and conveniently
traced to a specified cost object, a part of manufacturing overhead.
Manufacturing Overhead Right Ans - everything that is indirectly involved
with the production of a good. not direct materials and not direct labor
Product/ Inventorial Cost Right Ans - costs that are a necessary and
integral part of producing the finished product. shows up on the balance sheet
until product is sold.
Period Cost Right Ans - all non-manufacturing costs, deducted as an
expense in the accounting period in which they are incurred.
Variable Cost Right Ans - a cost that rises or falls depending on how much
is produced. they are constant.
, Fixed Cost Right Ans - a cost that does not change, no matter how much of a
good is produced
Differential Cost Right Ans - A relevant costs: costs that can be avoided
when alternatives are changed.
Opportunity Cost Right Ans - Cost of the next best alternative use of money,
time, or resources when one choice is made rather than another
Sunk Cost Right Ans - Any cost that has already been incurred and that
cannot be changed by any decision made now or in the future. It is never
relevant
TQM Right Ans - Total Quality Management: A process developed by Dr. W.
Ed Deming to increase productivity through quality control techniques.
Theory of Constraints Right Ans - A specific approach used to identify and
manage constraints in order to achieve the company's goals.
Gross Margin a.k.a. Gross Profit Right Ans - Net Sales - COGS
Linear Equation Right Ans - Y= a+bx
Y - total mixed cost
a - fixed costs
b - y intercept
Committed Fixed Cost Right Ans - Cannot be changed or eliminated with
ease.
Discretionary Fixed Cost Right Ans - Can change/eliminate the fixed cost.
Contribution Margin Right Ans - Amount of money available after
subtracting your variable costs. Sales Revenue-Variable Cost
Prime Costs Right Ans - Direct Materials + Direct Labor
Conversion Costs Right Ans - Direct Labor + Manufacturing Overhead
