Exam 1 study guide

Exam 1 study guide - Nicholas Ross Test Review Guide - Test...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Nicholas Ross Test Review Guide - Test 1, Chapters 16, 17, 18 ACC 212 - Spring 2010 1. Financial Accounting uses financial statements. These statements are used by external users and management. Their characteristics are: objective, prepared according to GAAP, prepared at fixed intervals, and company as a whole. Managerial Accounting uses management reports. These reports are used my management. Their characteristics are objective and subjective, prepared according to management needs, prepared at fixed intervals, or as needed, and company as a whole or segment. 2. Management use planning in developing the company’s objectives and translating these objectives into courses of action. Planning may be classified as strategic planning , which is developing long-term actions to achieve the company’s objectives; and operational planning , which develops short-term actions for managing the day-to-day operations of the company. The process by which managers run day-to-day operations is called directing . Monitoring operating results and comparing actual results with the expected results is controlling . Feedback is also used by managers to support continuous process improvement. Continuous process improvement is the philosophy of continually improving employees, business processes, and products. Inherent in each of the preceding management processes is decision making . 3. a. Cost object Costs are often classified by their relationship to a segment of operations, called a cost object . A cost object may be a product, a sales territory, a department, or an activity, such as research and development. b. Direct cost Identified with and can be traced to a cost object. For example, the cost of wood (materials) used by Legend Guitars in manufacturing a guitar is a direct cost of the guitar. c. Indirect cost
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/26/2011 for the course ACCT 455 taught by Professor White during the Spring '11 term at Jackson State.

Page1 / 4

Exam 1 study guide - Nicholas Ross Test Review Guide - Test...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online