Accounting II Final Exam Review Chapter 18 Direct and Indirect Costs -Cost – a payment of cash or a commitment to pay cash in the future for the purpose of generating revenues. A. Cost object – costs that are often classified by their relationship to a segment of operations. Ex. Product‚ sales territory‚ a department‚ or an activity‚ such as research and development 1. Direct Cost = identified with and can be traced to a cost object Ex. The wood for a guitar is a direct cost of the
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STRATEGICMANAGEMENT ACCOUNTING During the last years issues of strategic management accounting have received widespread attention in the accounting literature. Adapting to the changing needs of business in the 1990’s is one of the main challenges facing management accountants today. One dramatic change‚ in how many organisations operate‚ is the growing shift towards strategic alliances and partnering agreements with suppliers. However‚ there is still no comprehensive framework as to what constitutes
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elevance of Managerial Concepts in the Banking Industry by Zabihollah Rezaee Ph.D.‚ CPA‚ CMA‚ INTRODUCTION In the past‚ bank accountants paid little or no attention to the use of managerial accounting concepts in the banking industry. Viewing managerial accounting from the perspective of the banking industry provides a unique opportunity to explore the development of the internal reporting structure. While the use of internal cost and profitabiHty reports is widespread in merchandising‚ manufacturing
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cost accounting. This introductory chapter explains the intertwining roles of managers and management accountants in choosing an organization’s strategy‚ and in planning and controlling its operations. Unlike the remainder of the textbook‚ this chapter has no “number crunching.” Its main purpose is to emphasize the management accountant’s role in providing information for managers. Review Points organization. Cost accounting provides information for both management accounting and
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Direct labor hours (c) Machine hours (Points : 6) Predetermined overhead rate based on machine hours = (776000-175000)/105000 = 5.72 per hour | 3. (TCO 1) List and briefly describe four of the five differences between managerial accounting and financial accounting. (Points : 4) | 4. (TCO 2)The following information is available for Sappy’s Surgical Shears for the fiscal year ending December 31‚ 20XX. Beginning balance in Finished Goods $ 17‚000 Ending balance in Finished Goods 15‚200
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Cost accounting deals with ascertainment ‚ allocation ‚ apportionment accounting aspect of costs.Management accounting deals with the effect and impact of costs on the business. 2. Cost accounting provides a base for management accounting whereas management accounting is derived from cost accounting and financial accounting. 3. Cost accounting does not include financial accounting ‚ tax planning and tax accounting. Management accounting includes financial and cost accounting ‚ tax accounting
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Leventhal School of Accounting University of Southern California McGraw-Hill Irwin Contents PARTI FINANCIAL ACCOUNTING 1 Chapter 1 The Nature and Purpose of Accounting 2 The Need for Information 2 Operating Information 3 Financial Accounting Information 4 Management Accounting Information 4 Tax Accounting Information 5 Definition of Accounting 6 The Profession of Accounting 6 Our Approach to Accounting 7 Preconceptions about Accounting 7 Plan of the Book 8 The Financial Accounting Framework’ Accounting
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* Chapter 1 * MULTIPLE CHOICE A set of two or more interrelated components that interact to achieve a goal is: a) A system b) An accounting information system c) Data d) Mandatory information This results when a subsystem achieves its goals while contributing to the organization’s overall goal. e) Goal conflict f) Goal congruence g) Value of information h) Systems congruence Goal conflict may result when i) A decision or action
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COST ACCOUNTING: A BRANCH OF ACCONTING THE PRINCIPAL PURPOSE OF WHCH IS TO DTERMINE THE COST OF A SINGLE UNIT OR SERVICES (FOR STOCK VALUATION‚COST PLANNING AND CONTROL AND PROFIT REPORTING PURPOSE) . OR A BRANCH OF ACCOUNTING THAT DEALS WITH THE ACCUMULATION AND ANALYSIS OF COST INFORMATION FOR INTERNAL USE TO AID MAMNAGEMENT IN PLANNING‚ CONTROL AND DECISION MAKING
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Evolution of Management Accounting discipline and its relationship with other functions in organizations The challenges of the competitive environment in the 1980s should cause us to examine our traditional cost of accounting and management control systems. The DuPont Corporation (1903) and the reorganization of General Motors (1920) provided the opportunity for major innovations in the management control of decentralized operations‚ including the ROI criterion for evaluation of performance and
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