Chapter 1Accounting Past & Present
What is accounting?
Accounting is a process used to identify, measure and communicate economic
information about an entity for users to make decisions and informal judgements.
Generally refers to t
Accounting Chapter 16Cost Analysis for Decision Making
Differential costswill differ based on the selection of an alternate activity.
Sunk costhas been incurred and will not be undone by a future action.
Opportunity costis income that
Accounting Chapter 15Cost Analysis for Control
A comparison of the actual results to budgeted amounts.
Allows management to determine if the differences between the actual results and
the budget are favorable or unfavorable.
Chapter 7Accounting for and Presentation of Liabilities:
Liabilitieslegal obligations of the entity that are a result of past transactions, to pay cash,
transfer assets or provide services to others in the future. Debts owed to creditors.
Accounting Chapter 13Cost Accounting and Reporting Systems
Cost managementusing cost information to make decisions regarding the activities of the
Costs for accounting purposes
o Buy finished goods
o Sell finished goods
FINAL REVIEW EXAM
Identify major differences between financial accounting and managerial accounting
Describe the difference between variable and fixed cost behavior patterns
Explain what types of costs are likely to have a v
Chapter 12Managerial Accounting and Cost-Volume-Profit Relationships
Managerial vs. Financial Accounting
Managerial accounting that supports the internal planning decisions of
Financial accounting that is more historical information for owne
Chapter 3Fundamental Interpretations made from Financial Statement Data
A ratio is the relationship between two numbers
The name of most financial ratios describes the numbers to be related and usually
how the ratio is calculated.