managerial acctg
Terms
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- account-classification method
- also called account analysis) A cost-estimation method involving a careful examination of the ledger accounts for the purpose of classifying each cost as variable, fixed, or semivariable.
- cost management system (CMS)
- A management planning and controlling system that measures the cost of significant activities, identifies non-value-added costs, and identifies activities that will improve organizational performance.
- cost driver
- A characteristic of an activity or event that results in the incurrence of costs by that activity or event.
- cost prediction
- Forecast of cost at a particular level of activity.
- activity base
- ) A measure of an organization's activity that is used as a basis for specifying cost behavior. The activity base also is used to compute a predetermined overhead rate. The current trend is to refer to the activity base as a volume-based cost driver.
- actual overhead rate
- The rate at which overhead costs are actually incurred during an accounting period.
- controllable cost
- A cost that is subject to the control or substantial influence of a particular individual.
- cost of goods sold
- The expense measured by the cost of the finished goods sold during a period of time.
- balanced scorecard
- A model of business performance evaluation that balances measures of financial performance, internal operations, innovation and learning, and customer satisfaction.
- average cost per unit
- The total cost of producing a particular quantity of product divided by the number of units produced.
- activity cost pool
- A grouping of overhead costs assigned to various similar activities identified in an activity-based costing system.
- applied manufacturing overhead
- The amount of manufacturing-overhead costs added to Work-in-Process Inventory during an accounting period.
- activity
- A measure of an organization's output of goods or services.
- curvilinear cost
- A cost with a curved line for its graph.
- consumption ratio
- The proportion of an activity consumed by a particular product.
- Certified Management Accountant (CMA
- An accountant who has earned professional certification in managerial accounting.
- cost
- The sacrifice made, usually measured by the resources given up, to achieve a particular purpose.
- controlling
- Ensuring that an organization operates in the intended manner and achieves its goals. (One of the four fundamental management processes.)
- actual manufacturing overhead
- The actual costs incurred during an accounting period for manufacturing overhead. Includes actual indirect material, indirect labor, and other manufacturing costs.
- activity-based management (ABM
- Using an activity-based costing system to improve the operations of an organization.
- continuous improvement
- The constant effort to eliminate waste, reduce response time, simplify the design of both products and processes, and improve quality and customer service.
- cost behavior
- The relationship between cost and activity.
- batch-level activity
- An activity that must be accomplished for each batch of products rather than for each unit.
- activity accounting
- The collection of financial or operational performance information about significant activities in an enterprise.
- activity dictionary
- A complete listing of the activities included in an organization's ABC analysis.
- activity-based costing (ABC) system
- A two-stage procedure used to assign overhead costs to products or services produced. In the first stage, significant activities are identified, and overhead costs are assigned to activity cost pools in accordance with the way resources are consumed by the activities. In the second stage, the overhead costs are allocated from each activity cost pool to each product line in proportion to the amount of the cost driver consumed by the product line.
- cost estimation
- The process of determining how a particular cost behaves.
- actual costing
- A product-costing system in which actual direct-material, direct-labor, and actual manufacturing-overhead costs are added to Work-in-Process Inventory.
- attention-directing function
- The function of managerial-accounting information in pointing out to managers issues that need their attention.
- chief financial officer (CFO)
- An organization's top managerial and financial accountant. (Same as controller.)
- administrative costs
- All costs associated with the management of an organization as a whole. (Classified as period costs.)
- cost distribution
- (sometimes called cost allocation) The first step in assigning manufacturing-overhead costs. Overhead costs are assigned to all departmental overhead centers.
- conversion costs
- Direct-labor cost plus manufacturing-overhead cost.
- committed cost
- A cost that results from an organization's ownership or use of facilities and its basic organization structure.
- cost of goods manufactured
- The total cost of direct labor, direct material, and overhead transferred from Work-in-Process Inventory to Finished-Goods Inventory during an accounting period.
- cost-accounting system
- Part of the basic accounting system that accumulates cost for use in both managerial and financial accounting.
- coefficient of determination (R2)
- A statistical measure of goodness of fit.
- bill of activities
- A complete listing of the activities required for a particular product or service to be produced.
- bill of materials
- A list of all the materials needed to manufacture a product or product component.