Acct 303 Final Exam Clemson Key Guide
2023 with complete solution
Financial Accounting - External users, such as banks creditors, investors; reports results of past activities
Management Accounting - Primarily internal users; broader than cost acct; internal decision making; future oriented
Cost Accounting - Product costing (more focused than management acct); future oriented; internal users
Cost acct standards - Not parallel to GAAP; only with respect to gov't contracts
Mission Statement - What do we want to do, what do we want to accomplish as a company
Strategy - How are we going to achieve the goals listed in the mission statement
Core Competency - Critical things/components we need to achieve our strategy
Cost leadership strategy - High volume, low cost strategy
Ex. Walmart
Product differentiation strategy - High price, high quality, low volume strategy
Ex. luxury type items, customizable items
Organizational constraints - Monetary, intellectual capital, environmental
Monetary constraints - Not having enough money to do the projects or hire the employees we want
Intellectual capital contraints - getting, hiring, retaining employees
Environmental constraints - Only if you produce a product that has some environmental effects associated with it, monitor emissions coming out of production facilities
Value Chain - R&D
Design - how are we going to make it
Supply - where will we get our raw materials
Production - making the product
Marketing - getting the word out Distribution - how will we get the product to our customers
Customer Service - warranty, customer service
Balanced Scorecard - Lag vs. Lead indicators
4 perspectives
1) Learning and growth - can we adapt to future customer needs
2) Internal business - quality control of the product, employee satisfaction
3) Customer value - are our customers satisfied, are they getting their moneys worth
4) Financial - only one that is entirely a lag indicator
Lead vs Lag Indicators - Lag indicator - past results
Lead indicator - future looking
Earnings Management - "Cooking the books", changing the numbers to make the company look better, generally considered unethical and may be illegal (sometimes consistent with GAAP)
IMA 4 Standards of ethical conduct - Competence - do you have the knowledge and skill to do the job (CPA exam, degree, continuing professional education to maintain competency and learn new info)
Confidentiality - can you keep private info private
Integrity - honesty
Credibility - being fair and objective
Cost - The amount paid in exchange for a good or service
Expired cost - an expense, has been used
Unexpired cost - asset, hasn't been used yet (prepaid insurance)
Cost object - anything you want to know the cost of (most commonly referring to the product)
Direct cost - can be directly traced to the product (ex. materials); cost tracing
Indirect cost - cannot be directly traced to the product (ex. factory rent); cost allocation
Reaction to changes in activity - how does it change the cost if we change the number of units we produce
Relevant range - the range of activity over which the cost behavior pattern is valid
4 Cost Behavior Patterns - Variable, fixed, mixed, step
Variable cost - How does the cost behave both per unit produced and total (ex. direct materials)
2023 with complete solution
Financial Accounting - External users, such as banks creditors, investors; reports results of past activities
Management Accounting - Primarily internal users; broader than cost acct; internal decision making; future oriented
Cost Accounting - Product costing (more focused than management acct); future oriented; internal users
Cost acct standards - Not parallel to GAAP; only with respect to gov't contracts
Mission Statement - What do we want to do, what do we want to accomplish as a company
Strategy - How are we going to achieve the goals listed in the mission statement
Core Competency - Critical things/components we need to achieve our strategy
Cost leadership strategy - High volume, low cost strategy
Ex. Walmart
Product differentiation strategy - High price, high quality, low volume strategy
Ex. luxury type items, customizable items
Organizational constraints - Monetary, intellectual capital, environmental
Monetary constraints - Not having enough money to do the projects or hire the employees we want
Intellectual capital contraints - getting, hiring, retaining employees
Environmental constraints - Only if you produce a product that has some environmental effects associated with it, monitor emissions coming out of production facilities
Value Chain - R&D
Design - how are we going to make it
Supply - where will we get our raw materials
Production - making the product
Marketing - getting the word out Distribution - how will we get the product to our customers
Customer Service - warranty, customer service
Balanced Scorecard - Lag vs. Lead indicators
4 perspectives
1) Learning and growth - can we adapt to future customer needs
2) Internal business - quality control of the product, employee satisfaction
3) Customer value - are our customers satisfied, are they getting their moneys worth
4) Financial - only one that is entirely a lag indicator
Lead vs Lag Indicators - Lag indicator - past results
Lead indicator - future looking
Earnings Management - "Cooking the books", changing the numbers to make the company look better, generally considered unethical and may be illegal (sometimes consistent with GAAP)
IMA 4 Standards of ethical conduct - Competence - do you have the knowledge and skill to do the job (CPA exam, degree, continuing professional education to maintain competency and learn new info)
Confidentiality - can you keep private info private
Integrity - honesty
Credibility - being fair and objective
Cost - The amount paid in exchange for a good or service
Expired cost - an expense, has been used
Unexpired cost - asset, hasn't been used yet (prepaid insurance)
Cost object - anything you want to know the cost of (most commonly referring to the product)
Direct cost - can be directly traced to the product (ex. materials); cost tracing
Indirect cost - cannot be directly traced to the product (ex. factory rent); cost allocation
Reaction to changes in activity - how does it change the cost if we change the number of units we produce
Relevant range - the range of activity over which the cost behavior pattern is valid
4 Cost Behavior Patterns - Variable, fixed, mixed, step
Variable cost - How does the cost behave both per unit produced and total (ex. direct materials)
