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Definitions |
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An organization's ratio of fixed to variable costs is called:
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Operating Leverage
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The delegation of freedom to make decisions is called:
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Decentralization
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Which type of cost is variable per unit?
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Fixed Costs
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Costs identified with goods produced or purchased for resale are called:
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Product Costs
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The effect of price changes on sales volume is:
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Price Elasticity
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The process of measuring and identifying appropriate cost drivers & their effect on making product.
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Activity Analysis
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Which of the following is not part of the value chain of business functions?
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Performance Reports-marketing, distribution, R&D
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A mathematical model of the master budget that can react to any set of assumptions is a:
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Financial Planning Model
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The study of the effects of output volume on revenue, expenses and net income is:
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CVP Analysis
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A responsibility center in which managers are responsible for costs only is a:
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Cost Center
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Attributes that managers must achieve in order to drive the organization toward its goals:
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Key Success Factors
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What are the policies to protect and make the most efficient use of an organization's assets?
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Internal Controls
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A cost that has already been incurred and is irrelevant to the decision-making process is a:
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Sunk Cost
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The price that one segment charges to another segment of the same organization for a product:
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Transfer Price
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Which type of accounting is the branch of accounting that develops information for external users?
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Financial Accounting
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Sales - Variable Costs =
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Contribution Margin
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A condition where employees make decisions that help meet the organization's goals:
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Goal Congruence
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Costs for which we can identify no relationship to a cost objective are called:
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Unallocated Costs
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The method of internal reporting that emphasizes the distinction between variable and fixed costs:
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Contribution Approach
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The original costs of an asset less accumulated depreciation is called:
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Net Book Value
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Costs of facilities and services shared by users are:
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Common Costs
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Opportunity costs is:
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The maximum available contribution to profit forgone by using limited resources for a purpose.
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Relevant information is:
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The prediced future costs and revenues that will differ among alternatives
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Those directly involved with making and selling the organization's goods or services are:
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Line Managers
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The continuous process of comparing products and services against industry standards is:
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Benchmarking
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Costs that a company can eliminate without affecting the product's value to a customer are:
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Non-Value Added costs
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A group of individual costs that a company allocates to cost objectives using a single cost driver:
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Cost Pool
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Avoidable costs are:
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Costs that will NOT continue if an ongoing operation is changed or deleted
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Tracing or allocating costs to one or more cost objectives such as activities or departments is called:
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Cost Assignment
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A variance that occurs when actual costs are less than budgeted costs is a:
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Favorable Variance
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The joint formualtion by a manager and his or her superior of a set of goals and plans for the forthcoming period:
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Management by Objectives
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The difference between actual input prices and standard input prices times the actual quantity used:
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Price Variance
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The diferences between master budget amounts and the amounts in the flexible budget are:
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Activity Level Variances
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The aspect of accounting that often involves a special study to assess possible courses of action and recommends the best course to follow is answered by which type of questions?
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Problem Solving Questions
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Markup is the:
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Amount by which price exceeds cost
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Which of the following is not a stage in the product life cycle?
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Customer Focus-mature, development, phase-out
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The effort to ensure goods and services perform to customer expectations:
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Quality Control
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The degree to which a goal, objective or target is met is called:
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Effectiveness
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Which method uses statistics to fit a cost function to all the data?
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Least Squares Regression
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Which costs change at intervals of activity because the resources and costs become indivisible?
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Step Costs
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Management by exception means:
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Concentrating on areas that deviate from the plan and ignoring areas running smoothly
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Measures that drive an organization to meet its goals are called:
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Key Performance Indicators
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A measure of income or profit divided by the investment required to obtain that profit:
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Return on Investment - ROI
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Any output measure that causes costs is a:
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Cost Driver
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Which type of cost changes in direct proportion to the changes in cost driver levels?
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Variable Costs
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The quantitive expression of a plan of action is a:
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Budget
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Any cost that management of a responsibility center cannot affect in a given time span:
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Uncontrollable Cost
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Perfect Competition is:
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A market in which a firm can sell as much of a product as it can produce at a single market price.
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The juncture of manufacturing where joint products become separately identifiable is:
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Split-Off Point
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What types of decisions are part of the management decision making process?
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Planning and Controlling Decisions
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A costing approach that considers all indirect manufacturing costs to be product costs is the:
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Absorption Approach
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The item that restricts or constrains the production or sale of a product or service is:
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Limiting Factor
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the level of sales at which revenue equals expenses and net income is zero is called:
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Break Even Point
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A carefully determined cost per unit that should be attained is called a:
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Standard Cost
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Levels of performance that managers can achieve by realiztic levels of effort are called:
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Currently Attainable Standards
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The diference between the actual variable overhead and the amount budgeted for the actual level of cost driver activity:
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Variable-Overhead Spending Variance
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Weighing estimated costs against probable benefits is called:
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Cost Benefit Balance
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After tax opertaint income less a capital charge is called:
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Residual Income
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Which type of cost is fixed per unit?
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Variable Costs
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Initiatives that minimize costs by maximizing quality is:
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Total Quality Management
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What type of costs have no obvious relationship to levels of capacity or output activity?
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Discretionary Fixed Costs
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Which method to approximate cost functions selects a plausible cost driver and classifies each account as fixed or variable costs?
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Account Analysis
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Which of the following is not part of the Standards of Ethical Conduct?
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Independence-competence, fonfidentiality, integrity
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Any costs beyond the split-off point are
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Separable Costs
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The difference in total cost or revenue between two alternatives is:
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Differential Cost
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