ACTG 475 Final Exam Study Guide 100% Pass
FINANCIAL ACCOUNTING - ANSWER focuses on reporting financial information to
external parties such as investors, governmental agencies, banks, and suppliers, based
on GAAP
COST ACCOUNTING - ANSWER measures, analyzes and reports financial and
nonfinancial information related to the costs of acquiring or using resources in an
organization
STRATEGY - ANSWER specifies how an organization matches its own capabilities with
the opportunities in the marketplace
-2 types:
(1) cost leadership
(2) product differentiation
STRATEGIC COST MANAGEMENT - ANSWER describes cost management that
specifically focuses on strategic issues
VALUE - ANSWER usefulness a customer gains from a company's product or service.
-entire customer experience determines
VALUE CHAIN - ANSWER sequence of business functions by which a product is made
progressively more useful to customers
consists of:
-R&D
-designs of products and processes
-production
-marketing (incl. sales)
-distribution
-customer service
PRODUCTION & DISTRIBUTION - ANSWER parts of the value chain associated with
producing and delivering a product or service
-2 functions together known as the VALUE CHAIN
SUPPY CHAIN - ANSWER describes the flow of goods, services and information from the
,initial sources of materials, services and information to their delivery regardless of
whether the activities occur in one organization or in multiple organizations
PLANNING - ANSWER consists of:
1. selecting an organization's goals and strategies
2. predicting results under various alternative ways of achieving those goals
3. deciding how to attain the desired goals, and
4. communicating the goals and how to achieve them to the entire organization.
CONTROL - ANSWER comprises:
-taking actions that implement the planning decisions
-evaluating past performance, and
-providing feedback and learning to help future decision making.
BUDGET - ANSWER most important planning tool when implementing strategy
BUDGET - ANSWER quantitative expression of a proposed plan of action by
management and is an aid to coordinating what needs to be done to execute that plan
COST-BENEFIT APPROACH - ANSWER compares the benefits of an action/purchase to
the costs. Generally, of course, the benefits should exceed the costs
BEHAVIORAL AND TECHNICAL CONSIDERATIONS - ANSWER recognize, among other
things, that management is primarily a human activity that should focus on encouraging
individuals to do their jobs better
LINE MANAGEMENT - ANSWER Line management is directly responsible for achieving
the goals of the organization
STAFF MANAGEMENT - ANSWER provides advice, support and assistance to line
management
COMPETENCE, CONDIFENTIALITY, INTEGRITY, & CREDIBILITY - ANSWER 4 standards
of ethical conduct for management accountants are...
COST - ANSWER a sacrificed or forgone resource to achieve a specific objective.
ACTUAL COST - ANSWER cost that has occurred
BUDGETED COST - ANSWER a predicted cost
COST OBJECT - ANSWER anything for which a cost is desired
COST ACCUMULATION - ANSWER the collection of cost data in an organized way by
means of an accounting system
, COST ASSIGNMENT - ANSWER a general term that encompasses the gathering of
accumulated costs to a cost object in 2 ways:
-Tracing costs with a direct relationship to the cost object, and
-Allocating accumulated costs with an indirect relationship to a cost object
DIRECT COST - ANSWER Costs related to the cost object that can be traced to that
object in an economically feasible (cost-effective) way
INDIRECT COST - ANSWER costs that cannot be unambiguously related to the cost
object
VARIABLE COST - ANSWER change, in total, in proportion to changes in the related
level of activity or volume of output produced;
constant on a per-unit basis
FIXED COSTS - ANSWER remain unchanged, in total, for a given time period, despite
changes in the related level of activity or volume of output produced;
(per unit) change inversely with the level of production
COST DRIVER - ANSWER a variable, such as the level of activity or volume, that causally
affects costs over a given time span
RELEVANT RANGE - ANSWER the band or range of normal activity level (or volume) in
which there is a specific relationship between the level of activity (or volume) and the
cost in question
MANUFACTURING-SECTOR COMPANIES - ANSWER purchase materials and
components and convert them into various finished goods
-all manu costs are inventoriable costs
MERCHANDISING-SECTOR COMPANIES - ANSWER purchase and then sell tangible
products without changing their basic form.
-only 1 type of inventory
("merchandising inventory")
SERVICE-SECTOR COMPANIES - ANSWER provide services (intangible products) like
legal advice or audits.
DIRECT MATERIALS - ANSWER resources in-stock and available for use or;
acquisition costs of material that will become part of the cost object
FINANCIAL ACCOUNTING - ANSWER focuses on reporting financial information to
external parties such as investors, governmental agencies, banks, and suppliers, based
on GAAP
COST ACCOUNTING - ANSWER measures, analyzes and reports financial and
nonfinancial information related to the costs of acquiring or using resources in an
organization
STRATEGY - ANSWER specifies how an organization matches its own capabilities with
the opportunities in the marketplace
-2 types:
(1) cost leadership
(2) product differentiation
STRATEGIC COST MANAGEMENT - ANSWER describes cost management that
specifically focuses on strategic issues
VALUE - ANSWER usefulness a customer gains from a company's product or service.
-entire customer experience determines
VALUE CHAIN - ANSWER sequence of business functions by which a product is made
progressively more useful to customers
consists of:
-R&D
-designs of products and processes
-production
-marketing (incl. sales)
-distribution
-customer service
PRODUCTION & DISTRIBUTION - ANSWER parts of the value chain associated with
producing and delivering a product or service
-2 functions together known as the VALUE CHAIN
SUPPY CHAIN - ANSWER describes the flow of goods, services and information from the
,initial sources of materials, services and information to their delivery regardless of
whether the activities occur in one organization or in multiple organizations
PLANNING - ANSWER consists of:
1. selecting an organization's goals and strategies
2. predicting results under various alternative ways of achieving those goals
3. deciding how to attain the desired goals, and
4. communicating the goals and how to achieve them to the entire organization.
CONTROL - ANSWER comprises:
-taking actions that implement the planning decisions
-evaluating past performance, and
-providing feedback and learning to help future decision making.
BUDGET - ANSWER most important planning tool when implementing strategy
BUDGET - ANSWER quantitative expression of a proposed plan of action by
management and is an aid to coordinating what needs to be done to execute that plan
COST-BENEFIT APPROACH - ANSWER compares the benefits of an action/purchase to
the costs. Generally, of course, the benefits should exceed the costs
BEHAVIORAL AND TECHNICAL CONSIDERATIONS - ANSWER recognize, among other
things, that management is primarily a human activity that should focus on encouraging
individuals to do their jobs better
LINE MANAGEMENT - ANSWER Line management is directly responsible for achieving
the goals of the organization
STAFF MANAGEMENT - ANSWER provides advice, support and assistance to line
management
COMPETENCE, CONDIFENTIALITY, INTEGRITY, & CREDIBILITY - ANSWER 4 standards
of ethical conduct for management accountants are...
COST - ANSWER a sacrificed or forgone resource to achieve a specific objective.
ACTUAL COST - ANSWER cost that has occurred
BUDGETED COST - ANSWER a predicted cost
COST OBJECT - ANSWER anything for which a cost is desired
COST ACCUMULATION - ANSWER the collection of cost data in an organized way by
means of an accounting system
, COST ASSIGNMENT - ANSWER a general term that encompasses the gathering of
accumulated costs to a cost object in 2 ways:
-Tracing costs with a direct relationship to the cost object, and
-Allocating accumulated costs with an indirect relationship to a cost object
DIRECT COST - ANSWER Costs related to the cost object that can be traced to that
object in an economically feasible (cost-effective) way
INDIRECT COST - ANSWER costs that cannot be unambiguously related to the cost
object
VARIABLE COST - ANSWER change, in total, in proportion to changes in the related
level of activity or volume of output produced;
constant on a per-unit basis
FIXED COSTS - ANSWER remain unchanged, in total, for a given time period, despite
changes in the related level of activity or volume of output produced;
(per unit) change inversely with the level of production
COST DRIVER - ANSWER a variable, such as the level of activity or volume, that causally
affects costs over a given time span
RELEVANT RANGE - ANSWER the band or range of normal activity level (or volume) in
which there is a specific relationship between the level of activity (or volume) and the
cost in question
MANUFACTURING-SECTOR COMPANIES - ANSWER purchase materials and
components and convert them into various finished goods
-all manu costs are inventoriable costs
MERCHANDISING-SECTOR COMPANIES - ANSWER purchase and then sell tangible
products without changing their basic form.
-only 1 type of inventory
("merchandising inventory")
SERVICE-SECTOR COMPANIES - ANSWER provide services (intangible products) like
legal advice or audits.
DIRECT MATERIALS - ANSWER resources in-stock and available for use or;
acquisition costs of material that will become part of the cost object
