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Managerial accounting helps managers and other decision-makers understand how much their products cost, how their companies make money, and how to plan for profits and growth. To use this information, company decision-makers must understand managerial-accounting terms. When planning for the future, they follow a master budgeting process. To prepare this budget, and to understand how costs behave, the decision-makers should understand cost-volume-profit relationships, which explain how changes in volume or price affect profits.
Key Costs Related to Managerial Accounting
In accounting, a cost measures how much you pay/sacrifice for something. Managerial accounting must give managers accurate cost information relevant to their management decisions. Here are several cost-related terms you encounter in managerial accounting:
- Direct cost: Cost that you can trace to a specific product
- Indirect cost: Cost that you can’t easily trace to a specific product
- Materials: Physical things you need to make products
- Labor: Work needed to make products
- Overhead: Indirect materials, indirect labor, and other miscellaneous costs needed to make products
- Variable costs: Costs that change in direct proportion with activity level
- Fixed costs: Costs that don’t change with activity level
- Mixed costs: Combination of fixed and variable costsWe would like to show you a description here but the site won’t allow us. Headquartered in Harrison NY USA, URC is a global leader in automation and control for residential and commercial applications. URC has created legendary systems for over 25 years, including installations in The White House and Air Force One. Dec 15, 2009 The URC Editor software is only availble for Windows at this time. Many Mac users who have used Virtual PC have had success using the Editor(s). The Keyspan brand of serial to USB adapter is specifically recommended by URC, as is Belkin. Aug 14, 2013 Originally Posted by praz /t/1480956/software-for-urc-remote#post23626655 Should have bought the remote from an authorized dealer and this whining would not be necessary. You would have known up front that it requires dealer programming unless the software was going to be included with the purchase. Urc programming software for mac.
- Contribution margin: Sales less variable costs
- Product costs: Costs needed to make goods; considered part of inventory until soldApr 06, 2019 Objective: Explain the relationship of the WCS icon (World Coordinate System) to the AutoCAD coordinate system. Explain the difference between the WCS and the UCS (User Coordinate System). The World Coordinate System is based on the Cartesian Coordinate System. Having an understanding of this coordinate system (which many people have, despite. May 28, 2018 Is there a way to change or redefine the orientation of the WCS in AutoCAD (like UCS). All my research and Uncle Google say it's impossible, but there may be someone here who can do it. We have a site plan which shows a few tanks and structures drawn in the 'real' WCS. We also have this drawing with a defined UCS that lined up with my WCS. Differentiate between ucs and wcs in autocad pdf.
- Period costs: Costs not needed to make goods; recorded as expenses when incurred
- Work-in-process cost: How much you paid for goods that are started but not yet completed
- Finished goods cost: How much you paid for goods completed but not yet sold
- Cost of goods manufactured: The cost of the goods completed during a period
- Cost of goods sold: The cost of making goods that you sold
- Controllable costs: Costs that you can change
- Noncontrollable costs: Costs that you can’t change
- Conversion costs: Direct labor and overhead
- Incremental costs: Costs that change depending on which alternative you choose; also known as relevant costs and marginal costs
- Irrelevant costs: Costs that don’t change depending on which alternative you choose
- Opportunity costs: Costs of income lost because you chose a different alternative
- Sunk costs: Costs you’ve already paid or committed to paying
- Historical cost: How much you originally paid for something
- Cost per unit: Cost of a single unit of product
- Expense: Costs deducted from revenues on the income statement
- Cost driver: Factor thought to affect costs
- Process cost: Cost of similar goods made in large quantities on an assembly line
- Job order cost: Cost of a batch of specially made goods
- Absorption cost: Cost that includes fixed and variable product costs
- Target cost: Cost goal set for engineers designing a product
Budgets that Go into Creating a Master Budget
- Managerial Accounting: Creating Value in a Dynamic Business Environment (11th Edition) problem 2-37. Consider the following cost items: 1. Salaries of players on the Boston Red Sox. Year-end completed goods of Levi Strauss jeans. Executive compensation costs at Home Depot. Advertising costs for Sony.
- Managerial accounting helps managers and other decision-makers understand how much their products cost, how their companies make money, and how to plan for profits and growth. To use this information, company decision-makers must understand managerial-accounting terms. When planning for the future, they follow a master budgeting process. To prepare this budget, and to understand how.
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A master budget is a plan created to manage a company’s manufacturing and sales activity to meet profit and cash flow goals. Creating a master budget requires careful coordination of several smaller budgets covering all parts of the organization; that way, the master budget is realistic but not complacent.
Management Accounting Study Guide
The master budget contains the following elements:
Managerial Accounting Study Guide 9 Answers Test
- Sales budget
- Production budget
- Direct materials budget
- Starcraft 2 legacy of void cheats. Direct labor budget
- Manufacturing overhead budget
- Selling and administrative budget
- Capital acquisitions budget
- Cash budget
- Budgeted financial statements
Cost-Volume-Profit Relationships for Managerial Accounting
Managerial accounting provides useful tools, such as cost-volume-profit relationships, to aid decision-making. Cost-volume-profit analysis helps you understand different ways to meet your company’s net income goals. This image describes the relationship among sales, fixed costs, variable costs, and net income:
- The bottom axis indicates the level of production — the number of units you make.
- The left axis indicates value in dollars.
- Where total sales equals total costs, the company breaks even (which is why that’s called the break-even point).
- The shaded area to the upper right of this break-even point is profit.
- The shaded region to the lower left is net loss.
- Total variable costs are a diagonal line because the higher the production, the greater the variable costs.
- The total fixed costs line is horizontal because regardless of the production level, fixed costs stay the same.
- Total costs equal the sum of total variable costs and total fixed costs.