Managerial Accounting Exam 1 (McGraw Hill
ch.1-4)
Financial Accounting - correct answer ~Reports to those outside the organization: Owners, Creditors,
Regulators, & Tax authorities.
~ financial consequences of past activities.
~ objectivity and verifiability.
~ precision.
~ Companywide reports
~Must follow GAAP/FRS
~Mandatory for external reports
Managerial Accounting - correct answer ~concerned with providing information to managers within an
organization so that they can formulate plans, control operations, and make decisions.
~Decisions affecting the future.
~relevance
~timeliness
~segment reports
~does NOT need to follow GAAP/FRS
~Not Mandatory
Segment - correct answer is a part or activity of an organization about which managers would like cost,
revenue, or profit data. ex. departments, plants, or divisions
Planning - correct answer ~involves establishing goals and specifying how to achieve them
~normally accompanied by a budget
Controlling - correct answer involves gathering feedback to ensure that the plan is being properly
executed or modified as circumstances change
Decision Making - correct answer ~involves selecting a course of action from competing alternatives
~basic managerial skill to make intelligent, data driven decisions
, Managerial Accounting Exam 1 (McGraw Hill
ch.1-4)
~What should we be selling?
Who should we be serving?
How should we execute?
A budget - correct answer is a detailed plan for the future that is usually expressed in formal quantitative
terms
Performance report - correct answer compares budgeted data to actual data in an effort to identify and
learn from excellent performance and to identify and eliminate sources of unsatisfactory performance.
Data Analytics - correct answer the process of analyzing data with the aid of specialized systems and
software to draw conclusions about the information they contain
5 types of cost classifications - correct answer 1) assigning costs to cost objects
2) manufacturing companies
3) preparing financial statements
4) predicting cost behavior
5) making decisions
Assigning costs to cost objects - correct answer ~direct cost (can be easily traced)
~indirect cost (cannot be easily traced)
Accounting for cost in manufacturing companies - correct answer ~Manufacturing Cost
~Nonmanufacturing Cost
Manufacturing Costs - correct answer ~Direct Material (DM)
~Direct Labor (DL)
~Manufacturing Overhead (MOH)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller arriane. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
