Chapter 7. Job Costing
-A job is simply a product or service that can be easily (in other words, at reasonable cost) distinguished
from other products or services and for which the firm desires that a specific cost be recorded for the
product or service.
Terrys Top Ten from Chapters 1 and 2
(1) The Financial Accounting Standards Board (FASB) is responsible for
setting US Generally Accepted Accounting Principles (US GAAP) and the
International Accounting Standards Board (IASB) is responsible for
Exam 1 Study Guide
1. Management accounting information is aimed at helping managers within the organization
make decisions. Financial accounting is aimed at providing information to parties outside the
2. Value chain is the set of
1. Methods of estimating fixed costs; when should each be used
-engineering: cost estimate based on measurement and pricing of the work involved in
task; used for large projects or new products; detail each step required to perform an operation;
Chapter 3: Fundamentals of Cost Volume Profit Analysis
3-1. Cost-Volume-Profit Analysis
-cost-volume-profit (CVP) analysis: study of the relations among revenue, cost, and volume and
their effect on profit
Operating profit= total revenues
Chapter 13: Planning and Budgeting
-budget: financial plan of the resources needed to carry out activities and meet financial goals
-critical success factors: strength of a company that enable it to outperform competitors
-master budget: financ
Chapter 4: Fundamentals of Cost Analysis for Decision Making
-differential analysis: process of estimating revenues and costs of alternative actions available to
decision makers and of comparing these estimates to the status quo
-short run: per
-activity based cost management: approach that uses activity-based costing data to evaluate the
cost of value-chain activities and to identify opportunities for improvement
-process reengineering: changing operational processes to im
Chapter 4 in class quiz questions
1. The major emphasis in GAAS related to consideration of fraud in a financial statement audit (AU
240) is on management fraud.
2. Management fraud generally refers to intentional distortions of financial statements.
Chapter 5 auditing in class quiz questions
1. An audit teams responsibility would not include designing clients internal controls.
2. The appropriate separation of duties does not include data preparation.
3. A set of characteristics that helps to define