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Principles of Accounting, Volume 2: Managerial Accounting

Index

Principles of Accounting, Volume 2: Managerial AccountingIndex
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Table of contents
  1. Preface
  2. 1 Accounting as a Tool for Managers
    1. Why It Matters
    2. 1.1 Define Managerial Accounting and Identify the Three Primary Responsibilities of Management
    3. 1.2 Distinguish between Financial and Managerial Accounting
    4. 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
    5. 1.4 Describe the Role of the Institute of Management Accountants and the Use of Ethical Standards
    6. 1.5 Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting
    7. Key Terms
    8. Summary
    9. Multiple Choice
    10. Questions
    11. Exercise Set A
    12. Exercise Set B
    13. Thought Provokers
  3. 2 Building Blocks of Managerial Accounting
    1. Why It Matters
    2. 2.1 Distinguish between Merchandising, Manufacturing, and Service Organizations
    3. 2.2 Identify and Apply Basic Cost Behavior Patterns
    4. 2.3 Estimate a Variable and Fixed Cost Equation and Predict Future Costs
    5. Key Terms
    6. Summary
    7. Multiple Choice
    8. Questions
    9. Exercise Set A
    10. Exercise Set B
    11. Problem Set A
    12. Problem Set B
    13. Thought Provokers
  4. 3 Cost-Volume-Profit Analysis
    1. Why It Matters
    2. 3.1 Explain Contribution Margin and Calculate Contribution Margin per Unit, Contribution Margin Ratio, and Total Contribution Margin
    3. 3.2 Calculate a Break-Even Point in Units and Dollars
    4. 3.3 Perform Break-Even Sensitivity Analysis for a Single Product Under Changing Business Situations
    5. 3.4 Perform Break-Even Sensitivity Analysis for a Multi-Product Environment Under Changing Business Situations
    6. 3.5 Calculate and Interpret a Company’s Margin of Safety and Operating Leverage
    7. Key Terms
    8. Summary
    9. Multiple Choice
    10. Questions
    11. Exercise Set A
    12. Exercise Set B
    13. Problem Set A
    14. Problem Set B
    15. Thought Provokers
  5. 4 Job Order Costing
    1. Why It Matters
    2. 4.1 Distinguish between Job Order Costing and Process Costing
    3. 4.2 Describe and Identify the Three Major Components of Product Costs under Job Order Costing
    4. 4.3 Use the Job Order Costing Method to Trace the Flow of Product Costs through the Inventory Accounts
    5. 4.4 Compute a Predetermined Overhead Rate and Apply Overhead to Production
    6. 4.5 Compute the Cost of a Job Using Job Order Costing
    7. 4.6 Determine and Dispose of Underapplied or Overapplied Overhead
    8. 4.7 Prepare Journal Entries for a Job Order Cost System
    9. 4.8 Explain How a Job Order Cost System Applies to a Nonmanufacturing Environment
    10. Key Terms
    11. Summary
    12. Multiple Choice
    13. Questions
    14. Exercise Set A
    15. Exercise Set B
    16. Problem Set A
    17. Problem Set B
    18. Thought Provokers
  6. 5 Process Costing
    1. Why It Matters
    2. 5.1 Compare and Contrast Job Order Costing and Process Costing
    3. 5.2 Explain and Identify Conversion Costs
    4. 5.3 Explain and Compute Equivalent Units and Total Cost of Production in an Initial Processing Stage
    5. 5.4 Explain and Compute Equivalent Units and Total Cost of Production in a Subsequent Processing Stage
    6. 5.5 Prepare Journal Entries for a Process Costing System
    7. Key Terms
    8. Summary
    9. Multiple Choice
    10. Questions
    11. Exercise Set A
    12. Exercise Set B
    13. Problem Set A
    14. Problem Set B
    15. Thought Provokers
  7. 6 Activity-Based, Variable, and Absorption Costing
    1. Why It Matters
    2. 6.1 Calculate Predetermined Overhead and Total Cost under the Traditional Allocation Method
    3. 6.2 Describe and Identify Cost Drivers
    4. 6.3 Calculate Activity-Based Product Costs
    5. 6.4 Compare and Contrast Traditional and Activity-Based Costing Systems
    6. 6.5 Compare and Contrast Variable and Absorption Costing
    7. Key Terms
    8. Summary
    9. Multiple Choice
    10. Questions
    11. Exercise Set A
    12. Exercise Set B
    13. Problem Set A
    14. Problem Set B
    15. Thought Provokers
  8. 7 Budgeting
    1. Why It Matters
    2. 7.1 Describe How and Why Managers Use Budgets
    3. 7.2 Prepare Operating Budgets
    4. 7.3 Prepare Financial Budgets
    5. 7.4 Prepare Flexible Budgets
    6. 7.5 Explain How Budgets Are Used to Evaluate Goals
    7. Key Terms
    8. Summary
    9. Multiple Choice
    10. Questions
    11. Exercise Set A
    12. Exercise Set B
    13. Problem Set A
    14. Problem Set B
    15. Thought Provokers
  9. 8 Standard Costs and Variances
    1. Why It Matters
    2. 8.1 Explain How and Why a Standard Cost Is Developed
    3. 8.2 Compute and Evaluate Materials Variances
    4. 8.3 Compute and Evaluate Labor Variances
    5. 8.4 Compute and Evaluate Overhead Variances
    6. 8.5 Describe How Companies Use Variance Analysis
    7. Key Terms
    8. Summary
    9. Multiple Choice
    10. Questions
    11. Exercise Set A
    12. Exercise Set B
    13. Problem Set A
    14. Problem Set B
    15. Thought Provokers
  10. 9 Responsibility Accounting and Decentralization
    1. Why It Matters
    2. 9.1 Differentiate between Centralized and Decentralized Management
    3. 9.2 Describe How Decision-Making Differs between Centralized and Decentralized Environments
    4. 9.3 Describe the Types of Responsibility Centers
    5. 9.4 Describe the Effects of Various Decisions on Performance Evaluation of Responsibility Centers
    6. Key Terms
    7. Summary
    8. Multiple Choice
    9. Questions
    10. Exercise Set A
    11. Exercise Set B
    12. Problem Set A
    13. Problem Set B
    14. Thought Provokers
  11. 10 Short-Term Decision Making
    1. Why It Matters
    2. 10.1 Identify Relevant Information for Decision-Making
    3. 10.2 Evaluate and Determine Whether to Accept or Reject a Special Order
    4. 10.3 Evaluate and Determine Whether to Make or Buy a Component
    5. 10.4 Evaluate and Determine Whether to Keep or Discontinue a Segment or Product
    6. 10.5 Evaluate and Determine Whether to Sell or Process Further
    7. 10.6 Evaluate and Determine How to Make Decisions When Resources Are Constrained
    8. Key Terms
    9. Summary
    10. Multiple Choice
    11. Questions
    12. Exercise Set A
    13. Exercise Set B
    14. Problem Set A
    15. Problem Set B
    16. Thought Provokers
  12. 11 Capital Budgeting Decisions
    1. Why It Matters
    2. 11.1 Describe Capital Investment Decisions and How They Are Applied
    3. 11.2 Evaluate the Payback and Accounting Rate of Return in Capital Investment Decisions
    4. 11.3 Explain the Time Value of Money and Calculate Present and Future Values of Lump Sums and Annuities
    5. 11.4 Use Discounted Cash Flow Models to Make Capital Investment Decisions
    6. 11.5 Compare and Contrast Non-Time Value-Based Methods and Time Value-Based Methods in Capital Investment Decisions
    7. Key Terms
    8. Summary
    9. Multiple Choice
    10. Questions
    11. Exercise Set A
    12. Exercise Set B
    13. Problem Set A
    14. Problem Set B
    15. Thought Provokers
  13. 12 Balanced Scorecard and Other Performance Measures
    1. Why It Matters
    2. 12.1 Explain the Importance of Performance Measurement
    3. 12.2 Identify the Characteristics of an Effective Performance Measure
    4. 12.3 Evaluate an Operating Segment or a Project Using Return on Investment, Residual Income, and Economic Value Added
    5. 12.4 Describe the Balanced Scorecard and Explain How It Is Used
    6. Key Terms
    7. Summary
    8. Multiple Choice
    9. Questions
    10. Exercise Set A
    11. Exercise Set B
    12. Problem Set A
    13. Problem Set B
    14. Thought Provokers
  14. 13 Sustainability Reporting
    1. Why It Matters
    2. 13.1 Describe Sustainability and the Way It Creates Business Value
    3. 13.2 Identify User Needs for Information
    4. 13.3 Discuss Examples of Major Sustainability Initiatives
    5. 13.4 Future Issues in Sustainability
    6. Key Terms
    7. Summary
    8. Multiple Choice
    9. Questions
    10. Thought Provokers
  15. A | Financial Statement Analysis
  16. B | Time Value of Money
  17. C | Suggested Resources
  18. Answer Key
    1. Chapter 1
    2. Chapter 2
    3. Chapter 3
    4. Chapter 4
    5. Chapter 5
    6. Chapter 6
    7. Chapter 7
    8. Chapter 8
    9. Chapter 9
    10. Chapter 10
    11. Chapter 11
    12. Chapter 12
    13. Chapter 13
  19. Index
A
absorption costing 6.5 Compare and Contrast Variable and Absorption Costing
accounting rate of return (ARR) 11.2 Evaluate the Payback and Accounting Rate of Return in Capital Investment Decisions
activity base 6.1 Calculate Predetermined Overhead and Total Cost under the Traditional Allocation Method
activity-based costing 6.1 Calculate Predetermined Overhead and Total Cost under the Traditional Allocation Method, 6.3 Calculate Activity-Based Product Costs
After-tax income 12.3 Evaluate an Operating Segment or a Project Using Return on Investment, Residual Income, and Economic Value Added
allocated costs 9.4 Describe the Effects of Various Decisions on Performance Evaluation of Responsibility Centers, 10.4 Evaluate and Determine Whether to Keep or Discontinue a Segment or Product
Alternatives 11.1 Describe Capital Investment Decisions and How They Are Applied
annuities due 11.3 Explain the Time Value of Money and Calculate Present and Future Values of Lump Sums and Annuities
annuity 11.3 Explain the Time Value of Money and Calculate Present and Future Values of Lump Sums and Annuities
Asset turnover 12.3 Evaluate an Operating Segment or a Project Using Return on Investment, Residual Income, and Economic Value Added
attainable standard 8.1 Explain How and Why a Standard Cost Is Developed
Automation 1.5 Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting
Average fixed cost (AFC) 2.2 Identify and Apply Basic Cost Behavior Patterns
Average variable cost (AVC) 2.2 Identify and Apply Basic Cost Behavior Patterns
avoidable cost 10.1 Identify Relevant Information for Decision-Making
B
balanced scorecard 12.4 Describe the Balanced Scorecard and Explain How It Is Used
balanced scorecard (BSC) 1.5 Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting
Baseline criteria 11.1 Describe Capital Investment Decisions and How They Are Applied
batch-level cost 6.3 Calculate Activity-Based Product Costs
board of directors 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
bottleneck 10.6 Evaluate and Determine How to Make Decisions When Resources Are Constrained
break-even point 3.2 Calculate a Break-Even Point in Units and Dollars
bribery 1.4 Describe the Role of the Institute of Management Accountants and the Use of Ethical Standards
Brundtland Commission Report 13.1 Describe Sustainability and the Way It Creates Business Value
budget 7.1 Describe How and Why Managers Use Budgets
budget analyst 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
budgeted balance sheet 7.3 Prepare Financial Budgets
budgeted income statement 7.2 Prepare Operating Budgets
business sustainability 13.1 Describe Sustainability and the Way It Creates Business Value
business value 13.1 Describe Sustainability and the Way It Creates Business Value
C
capital asset budget 7.3 Prepare Financial Budgets
Capital assets 12.3 Evaluate an Operating Segment or a Project Using Return on Investment, Residual Income, and Economic Value Added
capital budgeting 11.1 Describe Capital Investment Decisions and How They Are Applied
capital expenditure budget 7.3 Prepare Financial Budgets
Capital investment 11.1 Describe Capital Investment Decisions and How They Are Applied
carbon footprint 13.1 Describe Sustainability and the Way It Creates Business Value
carbon output 13.1 Describe Sustainability and the Way It Creates Business Value
cash budget 7.3 Prepare Financial Budgets
cash collections schedule 7.3 Prepare Financial Budgets
Cash flow 11.2 Evaluate the Payback and Accounting Rate of Return in Capital Investment Decisions
cash inflow 11.2 Evaluate the Payback and Accounting Rate of Return in Capital Investment Decisions
cash outflow 11.2 Evaluate the Payback and Accounting Rate of Return in Capital Investment Decisions
cash payments schedule 7.3 Prepare Financial Budgets
cash-management accountant 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
Centralization 9.1 Differentiate between Centralized and Decentralized Management
Certified Fraud Examiner (CFE) 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
Certified Government Auditing Professional (CGAP) 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
Certified Internal Auditor (CIA) 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
Certified Management Accountant (CMA) 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
Certified Public Accountant (CPA) 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
charitable giving 13.1 Describe Sustainability and the Way It Creates Business Value
Chartered Financial Analyst (CFA) 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
chief executive officer (CEO) 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
chief financial officer (CFO) 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
Chili’s 4.1 Distinguish between Job Order Costing and Process Costing
CITGO 4.1 Distinguish between Job Order Costing and Process Costing
climate change 13.1 Describe Sustainability and the Way It Creates Business Value
Collaboration 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
Commercial awareness 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
Common fixed costs 6.5 Compare and Contrast Variable and Absorption Costing
composite unit 3.4 Perform Break-Even Sensitivity Analysis for a Multi-Product Environment Under Changing Business Situations
Compounding 11.3 Explain the Time Value of Money and Calculate Present and Future Values of Lump Sums and Annuities
constraint 10.6 Evaluate and Determine How to Make Decisions When Resources Are Constrained
Continuous improvement 1.5 Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting
Contribution margin 3.1 Explain Contribution Margin and Calculate Contribution Margin per Unit, Contribution Margin Ratio, and Total Contribution Margin
contribution margin income statement 3.1 Explain Contribution Margin and Calculate Contribution Margin per Unit, Contribution Margin Ratio, and Total Contribution Margin
contribution margin per unit 3.1 Explain Contribution Margin and Calculate Contribution Margin per Unit, Contribution Margin Ratio, and Total Contribution Margin
contribution margin ratio 3.1 Explain Contribution Margin and Calculate Contribution Margin per Unit, Contribution Margin Ratio, and Total Contribution Margin
Controllable costs 9.4 Describe the Effects of Various Decisions on Performance Evaluation of Responsibility Centers
controllable factors 12.1 Explain the Importance of Performance Measurement
controller 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
Controlling 1.1 Define Managerial Accounting and Identify the Three Primary Responsibilities of Management
conversion costs 2.2 Identify and Apply Basic Cost Behavior Patterns, 4.1 Distinguish between Job Order Costing and Process Costing, 5.1 Compare and Contrast Job Order Costing and Process Costing
corporate social responsibility 13.1 Describe Sustainability and the Way It Creates Business Value
Corporate social responsibility (CSR) 1.5 Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting
cost accountants 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
cost approach 9.4 Describe the Effects of Various Decisions on Performance Evaluation of Responsibility Centers
cost behaviors 2.2 Identify and Apply Basic Cost Behavior Patterns
cost center 9.3 Describe the Types of Responsibility Centers, 12.1 Explain the Importance of Performance Measurement
cost driver 2.2 Identify and Apply Basic Cost Behavior Patterns, 4.2 Describe and Identify the Three Major Components of Product Costs under Job Order Costing, 6.2 Describe and Identify Cost Drivers
cost equation 2.3 Estimate a Variable and Fixed Cost Equation and Predict Future Costs
cost of goods manufactured 4.3 Use the Job Order Costing Method to Trace the Flow of Product Costs through the Inventory Accounts
cost of goods sold 4.3 Use the Job Order Costing Method to Trace the Flow of Product Costs through the Inventory Accounts
cost per unit 6.3 Calculate Activity-Based Product Costs
cost pool 6.3 Calculate Activity-Based Product Costs
cost-volume-profit (CVP) analysis 3.2 Calculate a Break-Even Point in Units and Dollars
costs of goods sold 5.1 Compare and Contrast Job Order Costing and Process Costing
D
Decentralization 9.1 Differentiate between Centralized and Decentralized Management
differential analysis 10.1 Identify Relevant Information for Decision-Making
differential cost 10.1 Identify Relevant Information for Decision-Making
differential revenue 10.1 Identify Relevant Information for Decision-Making
Direct labor 2.1 Distinguish between Merchandising, Manufacturing, and Service Organizations, 4.2 Describe and Identify the Three Major Components of Product Costs under Job Order Costing, 4.2 Describe and Identify the Three Major Components of Product Costs under Job Order Costing, 6.1 Calculate Predetermined Overhead and Total Cost under the Traditional Allocation Method
direct labor budget 7.2 Prepare Operating Budgets
direct labor rate variance 8.3 Compute and Evaluate Labor Variances
direct labor time variance 8.3 Compute and Evaluate Labor Variances
direct labor variance 8.3 Compute and Evaluate Labor Variances
Direct material 6.1 Calculate Predetermined Overhead and Total Cost under the Traditional Allocation Method
Direct materials 2.1 Distinguish between Merchandising, Manufacturing, and Service Organizations, 4.2 Describe and Identify the Three Major Components of Product Costs under Job Order Costing, 4.2 Describe and Identify the Three Major Components of Product Costs under Job Order Costing
direct materials budget 7.2 Prepare Operating Budgets
direct materials price variance 8.2 Compute and Evaluate Materials Variances
direct materials quantity variance 8.2 Compute and Evaluate Materials Variances
direct materials variance 8.2 Compute and Evaluate Materials Variances
discount cash flow model 11.4 Use Discounted Cash Flow Models to Make Capital Investment Decisions
Discounting 11.3 Explain the Time Value of Money and Calculate Present and Future Values of Lump Sums and Annuities
discretionary cost center 9.3 Describe the Types of Responsibility Centers
Dow 4.1 Distinguish between Job Order Costing and Process Costing
E
Economic value added (EVA) 12.3 Evaluate an Operating Segment or a Project Using Return on Investment, Residual Income, and Economic Value Added
effective communication 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
Enrolled Agent (EA) 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
enterprise resource planning (ERP) 1.5 Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting
Environmental sustainability 13.1 Describe Sustainability and the Way It Creates Business Value
equity issues 13.1 Describe Sustainability and the Way It Creates Business Value
equivalent units 5.1 Compare and Contrast Job Order Costing and Process Costing
estimated activity base 4.4 Compute a Predetermined Overhead Rate and Apply Overhead to Production
ethics 1.4 Describe the Role of the Institute of Management Accountants and the Use of Ethical Standards
Evaluating 1.1 Define Managerial Accounting and Identify the Three Primary Responsibilities of Management
expense recognition principle 4.1 Distinguish between Job Order Costing and Process Costing, 5.1 Compare and Contrast Job Order Costing and Process Costing, 6.5 Compare and Contrast Variable and Absorption Costing
external users 1.2 Distinguish between Financial and Managerial Accounting
F
factory-level cost 6.3 Calculate Activity-Based Product Costs
favorable variance 8.1 Explain How and Why a Standard Cost Is Developed
financial accounting 1.2 Distinguish between Financial and Managerial Accounting
Financial Accounting Standards Board (FASB) 1.2 Distinguish between Financial and Managerial Accounting
financial analyst 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
financial budget 7.1 Describe How and Why Managers Use Budgets
finished goods inventory 4.3 Use the Job Order Costing Method to Trace the Flow of Product Costs through the Inventory Accounts, 4.3 Use the Job Order Costing Method to Trace the Flow of Product Costs through the Inventory Accounts
Fixed assets 12.3 Evaluate an Operating Segment or a Project Using Return on Investment, Residual Income, and Economic Value Added
fixed cost 2.2 Identify and Apply Basic Cost Behavior Patterns
Fixed costs 3.1 Explain Contribution Margin and Calculate Contribution Margin per Unit, Contribution Margin Ratio, and Total Contribution Margin, 10.1 Identify Relevant Information for Decision-Making
fixed factory overhead variance 8.4 Compute and Evaluate Overhead Variances
flexible budget 7.4 Prepare Flexible Budgets, 8.4 Compute and Evaluate Overhead Variances
flow of goods through production 4.1 Distinguish between Job Order Costing and Process Costing
Foreign Corrupt Practices Act (FCPA) 1.4 Describe the Role of the Institute of Management Accountants and the Use of Ethical Standards
full-cost accounting 13.1 Describe Sustainability and the Way It Creates Business Value
future value 11.3 Explain the Time Value of Money and Calculate Present and Future Values of Lump Sums and Annuities
future value (FV) 11.3 Explain the Time Value of Money and Calculate Present and Future Values of Lump Sums and Annuities
G
GAAP 1.4 Describe the Role of the Institute of Management Accountants and the Use of Ethical Standards, 6.5 Compare and Contrast Variable and Absorption Costing
generally accepted accounting principles (GAAP) 1.2 Distinguish between Financial and Managerial Accounting
Global Reporting Initiative (GRI) 13.3 Discuss Examples of Major Sustainability Initiatives
globalization 1.5 Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting
goal congruence 9.4 Describe the Effects of Various Decisions on Performance Evaluation of Responsibility Centers, 12.1 Explain the Importance of Performance Measurement
goals 1.1 Define Managerial Accounting and Identify the Three Primary Responsibilities of Management
Government agencies 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
H
H&R Block 4.1 Distinguish between Job Order Costing and Process Costing
high-low method 2.3 Estimate a Variable and Fixed Cost Equation and Predict Future Costs
hurdle rate 11.2 Evaluate the Payback and Accounting Rate of Return in Capital Investment Decisions
I
ideal standard 8.1 Explain How and Why a Standard Cost Is Developed
Incremental expenses 11.2 Evaluate the Payback and Accounting Rate of Return in Capital Investment Decisions
incremental net income 11.2 Evaluate the Payback and Accounting Rate of Return in Capital Investment Decisions
Incremental revenues 11.2 Evaluate the Payback and Accounting Rate of Return in Capital Investment Decisions
indirect labor 2.2 Identify and Apply Basic Cost Behavior Patterns, 4.2 Describe and Identify the Three Major Components of Product Costs under Job Order Costing, 6.1 Calculate Predetermined Overhead and Total Cost under the Traditional Allocation Method
indirect material 2.2 Identify and Apply Basic Cost Behavior Patterns, 6.1 Calculate Predetermined Overhead and Total Cost under the Traditional Allocation Method
Indirect materials 4.2 Describe and Identify the Three Major Components of Product Costs under Job Order Costing
initial investment 11.2 Evaluate the Payback and Accounting Rate of Return in Capital Investment Decisions
Institute of Management Accountants (IMA) 1.4 Describe the Role of the Institute of Management Accountants and the Use of Ethical Standards
intangible goods 1.5 Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting
intangible products 2.1 Distinguish between Merchandising, Manufacturing, and Service Organizations
Integrated Reporting 13.3 Discuss Examples of Major Sustainability Initiatives
internal auditor 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
internal rate of return (IRR) 11.4 Use Discounted Cash Flow Models to Make Capital Investment Decisions
internal users 1.2 Distinguish between Financial and Managerial Accounting
inventory account 4.3 Use the Job Order Costing Method to Trace the Flow of Product Costs through the Inventory Accounts
Invested capital 12.3 Evaluate an Operating Segment or a Project Using Return on Investment, Residual Income, and Economic Value Added
investment center 9.3 Describe the Types of Responsibility Centers, 12.1 Explain the Importance of Performance Measurement
irrelevant cost 10.1 Identify Relevant Information for Decision-Making
irrelevant revenue 10.1 Identify Relevant Information for Decision-Making
J
job cost sheet 4.1 Distinguish between Job Order Costing and Process Costing, 4.5 Compute the Cost of a Job Using Job Order Costing
job order cost system 4.5 Compute the Cost of a Job Using Job Order Costing
Job order costing 4.1 Distinguish between Job Order Costing and Process Costing, 4.1 Distinguish between Job Order Costing and Process Costing, 4.1 Distinguish between Job Order Costing and Process Costing
joint costs 10.5 Evaluate and Determine Whether to Sell or Process Further
Just-in-time (JIT) manufacturing 1.5 Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting
K
Kaizen 1.5 Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting
Kellogg’s 4.1 Distinguish between Job Order Costing and Process Costing
L
lean business model 1.5 Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting
Lean Six Sigma (LSS) 1.5 Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting
life-cycle 13.1 Describe Sustainability and the Way It Creates Business Value
loss leader 4.2 Describe and Identify the Three Major Components of Product Costs under Job Order Costing
Lower-level management 9.1 Differentiate between Centralized and Decentralized Management
lump sum 11.3 Explain the Time Value of Money and Calculate Present and Future Values of Lump Sums and Annuities
M
management control system 9.1 Differentiate between Centralized and Decentralized Management
Managerial accounting 1.1 Define Managerial Accounting and Identify the Three Primary Responsibilities of Management, 1.2 Distinguish between Financial and Managerial Accounting
manufacturing 2.1 Distinguish between Merchandising, Manufacturing, and Service Organizations
manufacturing costs 4.1 Distinguish between Job Order Costing and Process Costing, 5.1 Compare and Contrast Job Order Costing and Process Costing
manufacturing organization 2.1 Distinguish between Merchandising, Manufacturing, and Service Organizations
Manufacturing overhead 2.1 Distinguish between Merchandising, Manufacturing, and Service Organizations, 4.2 Describe and Identify the Three Major Components of Product Costs under Job Order Costing, 4.2 Describe and Identify the Three Major Components of Product Costs under Job Order Costing
manufacturing overhead budget 7.2 Prepare Operating Budgets
manufacturing overhead costs 6.1 Calculate Predetermined Overhead and Total Cost under the Traditional Allocation Method
margin of safety 3.5 Calculate and Interpret a Company’s Margin of Safety and Operating Leverage
market price approach 9.4 Describe the Effects of Various Decisions on Performance Evaluation of Responsibility Centers
Marshalls 4.1 Distinguish between Job Order Costing and Process Costing
master budget 7.1 Describe How and Why Managers Use Budgets
materiality 13.3 Discuss Examples of Major Sustainability Initiatives
materials requisition form 4.2 Describe and Identify the Three Major Components of Product Costs under Job Order Costing
merchandising 2.1 Distinguish between Merchandising, Manufacturing, and Service Organizations
merchandising firm 2.1 Distinguish between Merchandising, Manufacturing, and Service Organizations
metric 12.1 Explain the Importance of Performance Measurement
metrics 12.4 Describe the Balanced Scorecard and Explain How It Is Used
Mid-level management 9.1 Differentiate between Centralized and Decentralized Management
minimum required rate of return 12.3 Evaluate an Operating Segment or a Project Using Return on Investment, Residual Income, and Economic Value Added
mission statement 1.1 Define Managerial Accounting and Identify the Three Primary Responsibilities of Management
Mixed costs 2.2 Identify and Apply Basic Cost Behavior Patterns
monetary accounting information 1.2 Distinguish between Financial and Managerial Accounting
multi-product environment 3.4 Perform Break-Even Sensitivity Analysis for a Multi-Product Environment Under Changing Business Situations
multiplier effect 3.5 Calculate and Interpret a Company’s Margin of Safety and Operating Leverage
N
negotiated price approach 9.4 Describe the Effects of Various Decisions on Performance Evaluation of Responsibility Centers
Net present value (NPV) 11.4 Use Discounted Cash Flow Models to Make Capital Investment Decisions
non-renewable resources 13.1 Describe Sustainability and the Way It Creates Business Value
Non-time value methods 11.2 Evaluate the Payback and Accounting Rate of Return in Capital Investment Decisions
nonmonetary accounting information 1.2 Distinguish between Financial and Managerial Accounting
Nonprofit (not-for-profit) organizations 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
normal capacity 10.2 Evaluate and Determine Whether to Accept or Reject a Special Order
O
objectives 1.1 Define Managerial Accounting and Identify the Three Primary Responsibilities of Management
Operating assets 12.3 Evaluate an Operating Segment or a Project Using Return on Investment, Residual Income, and Economic Value Added
operating budget 7.1 Describe How and Why Managers Use Budgets
Operating budgets 7.2 Prepare Operating Budgets
operating expense 11.1 Describe Capital Investment Decisions and How They Are Applied
operating income 12.3 Evaluate an Operating Segment or a Project Using Return on Investment, Residual Income, and Economic Value Added
Operating leverage 3.5 Calculate and Interpret a Company’s Margin of Safety and Operating Leverage
operating overhead 4.8 Explain How a Job Order Cost System Applies to a Nonmanufacturing Environment
opportunity costs 10.1 Identify Relevant Information for Decision-Making
ordinary annuity 11.3 Explain the Time Value of Money and Calculate Present and Future Values of Lump Sums and Annuities
organizational chart 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants, 9.2 Describe How Decision-Making Differs between Centralized and Decentralized Environments
Outsourcing 1.5 Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting, 10.3 Evaluate and Determine Whether to Make or Buy a Component
overapplied overhead 4.6 Determine and Dispose of Underapplied or Overapplied Overhead
overhead 4.2 Describe and Identify the Three Major Components of Product Costs under Job Order Costing, 4.2 Describe and Identify the Three Major Components of Product Costs under Job Order Costing
overhead costs 4.1 Distinguish between Job Order Costing and Process Costing
overhead rate 4.4 Compute a Predetermined Overhead Rate and Apply Overhead to Production
overhead variances 8.4 Compute and Evaluate Overhead Variances
P
P/E ratio 13.2 Identify User Needs for Information
Paris Climate Agreement 13.1 Describe Sustainability and the Way It Creates Business Value
payback method (PM) 11.2 Evaluate the Payback and Accounting Rate of Return in Capital Investment Decisions
performance measurement system 12.1 Explain the Importance of Performance Measurement
performance measures 12.1 Explain the Importance of Performance Measurement
period cost 4.1 Distinguish between Job Order Costing and Process Costing
Period costs 2.2 Identify and Apply Basic Cost Behavior Patterns, 5.1 Compare and Contrast Job Order Costing and Process Costing
Pet Smart 4.1 Distinguish between Job Order Costing and Process Costing
planning 1.1 Define Managerial Accounting and Identify the Three Primary Responsibilities of Management
predetermined overhead allocation rate 4.4 Compute a Predetermined Overhead Rate and Apply Overhead to Production
predetermined overhead rate 6.1 Calculate Predetermined Overhead and Total Cost under the Traditional Allocation Method
preference decision 11.1 Describe Capital Investment Decisions and How They Are Applied
present value 11.3 Explain the Time Value of Money and Calculate Present and Future Values of Lump Sums and Annuities
Present value (PV) 11.3 Explain the Time Value of Money and Calculate Present and Future Values of Lump Sums and Annuities
price-earnings ratio 13.2 Identify User Needs for Information
Primary users 13.2 Identify User Needs for Information
Prime costs 2.2 Identify and Apply Basic Cost Behavior Patterns, 4.1 Distinguish between Job Order Costing and Process Costing, 5.1 Compare and Contrast Job Order Costing and Process Costing
process costing 4.1 Distinguish between Job Order Costing and Process Costing, 4.1 Distinguish between Job Order Costing and Process Costing, 5.1 Compare and Contrast Job Order Costing and Process Costing
Product costs 2.2 Identify and Apply Basic Cost Behavior Patterns, 5.1 Compare and Contrast Job Order Costing and Process Costing
product-level cost 6.3 Calculate Activity-Based Product Costs
production budget 7.2 Prepare Operating Budgets
production cost report 5.3 Explain and Compute Equivalent Units and Total Cost of Production in an Initial Processing Stage
Productive assets 12.3 Evaluate an Operating Segment or a Project Using Return on Investment, Residual Income, and Economic Value Added
profit center 9.3 Describe the Types of Responsibility Centers, 12.1 Explain the Importance of Performance Measurement
profit margin percentage 9.3 Describe the Types of Responsibility Centers
Q
qualitative factor 10.1 Identify Relevant Information for Decision-Making
qualitative factors 12.4 Describe the Balanced Scorecard and Explain How It Is Used
quantitative factor 10.1 Identify Relevant Information for Decision-Making
quantitative factors 12.4 Describe the Balanced Scorecard and Explain How It Is Used
R
radio-frequency identification (RFID) 1.5 Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting
raw materials inventory 4.2 Describe and Identify the Three Major Components of Product Costs under Job Order Costing, 4.3 Use the Job Order Costing Method to Trace the Flow of Product Costs through the Inventory Accounts, 4.3 Use the Job Order Costing Method to Trace the Flow of Product Costs through the Inventory Accounts
relevant cost 10.1 Identify Relevant Information for Decision-Making
relevant range 2.2 Identify and Apply Basic Cost Behavior Patterns, 3.1 Explain Contribution Margin and Calculate Contribution Margin per Unit, Contribution Margin Ratio, and Total Contribution Margin, 10.2 Evaluate and Determine Whether to Accept or Reject a Special Order
relevant revenue 10.1 Identify Relevant Information for Decision-Making
renewable energy 13.1 Describe Sustainability and the Way It Creates Business Value
reporting 1.2 Distinguish between Financial and Managerial Accounting, 1.2 Distinguish between Financial and Managerial Accounting, 1.2 Distinguish between Financial and Managerial Accounting
residual income (RI) 12.3 Evaluate an Operating Segment or a Project Using Return on Investment, Residual Income, and Economic Value Added
Residual income (RI) 9.3 Describe the Types of Responsibility Centers
Responsibility accounting 9.3 Describe the Types of Responsibility Centers, 12.1 Explain the Importance of Performance Measurement
responsibility centers 9.3 Describe the Types of Responsibility Centers
Return on investment 9.3 Describe the Types of Responsibility Centers
return on investment (ROI) 12.3 Evaluate an Operating Segment or a Project Using Return on Investment, Residual Income, and Economic Value Added
revenue center 9.3 Describe the Types of Responsibility Centers, 12.1 Explain the Importance of Performance Measurement
Robinson-Patman Act 10.2 Evaluate and Determine Whether to Accept or Reject a Special Order
rolling budget 7.1 Describe How and Why Managers Use Budgets
S
sales budget 7.2 Prepare Operating Budgets
Sales margin 12.3 Evaluate an Operating Segment or a Project Using Return on Investment, Residual Income, and Economic Value Added
sales mix 3.4 Perform Break-Even Sensitivity Analysis for a Multi-Product Environment Under Changing Business Situations
Sarbanes-Oxley Act of 2002 (SOX) 1.4 Describe the Role of the Institute of Management Accountants and the Use of Ethical Standards
scatter graph 2.3 Estimate a Variable and Fixed Cost Equation and Predict Future Costs
screening decision 11.1 Describe Capital Investment Decisions and How They Are Applied
SEC 1.4 Describe the Role of the Institute of Management Accountants and the Use of Ethical Standards
secondary users 13.2 Identify User Needs for Information
segment 10.4 Evaluate and Determine Whether to Keep or Discontinue a Segment or Product
segments 9.2 Describe How Decision-Making Differs between Centralized and Decentralized Environments
Selling and administrative (S&A) expenses 5.1 Compare and Contrast Job Order Costing and Process Costing
Selling and administrative costs 4.1 Distinguish between Job Order Costing and Process Costing
selling and administrative expense budget 7.2 Prepare Operating Budgets
sensitivity analysis 3.3 Perform Break-Even Sensitivity Analysis for a Single Product Under Changing Business Situations
service 2.1 Distinguish between Merchandising, Manufacturing, and Service Organizations
service industries 4.8 Explain How a Job Order Cost System Applies to a Nonmanufacturing Environment
service organization 2.1 Distinguish between Merchandising, Manufacturing, and Service Organizations
Sherwin Williams 4.1 Distinguish between Job Order Costing and Process Costing
short-term decision analysis 10.1 Identify Relevant Information for Decision-Making
social contract 13.2 Identify User Needs for Information
Sony 4.8 Explain How a Job Order Cost System Applies to a Nonmanufacturing Environment
special orders 10.2 Evaluate and Determine Whether to Accept or Reject a Special Order
split-off point 10.5 Evaluate and Determine Whether to Sell or Process Further
spoilage 5.3 Explain and Compute Equivalent Units and Total Cost of Production in an Initial Processing Stage
Stakeholders 12.4 Describe the Balanced Scorecard and Explain How It Is Used, 13.1 Describe Sustainability and the Way It Creates Business Value
standard 8.1 Explain How and Why a Standard Cost Is Developed
standard cost 8.1 Explain How and Why a Standard Cost Is Developed
static budget 7.4 Prepare Flexible Budgets
stepped cost 2.2 Identify and Apply Basic Cost Behavior Patterns
Stockholders 12.4 Describe the Balanced Scorecard and Explain How It Is Used
strategic goals 9.1 Differentiate between Centralized and Decentralized Management
strategic plan 12.1 Explain the Importance of Performance Measurement
strategic planning 1.1 Define Managerial Accounting and Identify the Three Primary Responsibilities of Management
sunk cost 10.1 Identify Relevant Information for Decision-Making
sustainability 1.5 Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting, 13.1 Describe Sustainability and the Way It Creates Business Value
Sustainability Accounting Standards Board (SASB) 13.3 Discuss Examples of Major Sustainability Initiatives
sustainability report 13.1 Describe Sustainability and the Way It Creates Business Value
sustainable development 13.1 Describe Sustainability and the Way It Creates Business Value
T
tangible goods 1.5 Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting
tangible products 2.1 Distinguish between Merchandising, Manufacturing, and Service Organizations
target pricing 3.3 Perform Break-Even Sensitivity Analysis for a Single Product Under Changing Business Situations
technology 1.5 Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting
theory of constraints (TOC) 1.5 Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting
time tickets 4.2 Describe and Identify the Three Major Components of Product Costs under Job Order Costing
time value of money 11.3 Explain the Time Value of Money and Calculate Present and Future Values of Lump Sums and Annuities
Titleist 4.1 Distinguish between Job Order Costing and Process Costing
total contribution margin 3.1 Explain Contribution Margin and Calculate Contribution Margin per Unit, Contribution Margin Ratio, and Total Contribution Margin
total cost 2.2 Identify and Apply Basic Cost Behavior Patterns
total direct labor variance 8.3 Compute and Evaluate Labor Variances
total direct materials cost variance 8.2 Compute and Evaluate Materials Variances
total fixed costs 2.2 Identify and Apply Basic Cost Behavior Patterns
Total quality management (TQM) 1.5 Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting
total variable costs 2.2 Identify and Apply Basic Cost Behavior Patterns
total variable overhead cost variance 8.4 Compute and Evaluate Overhead Variances
Traditional allocation 6.1 Calculate Predetermined Overhead and Total Cost under the Traditional Allocation Method, 6.4 Compare and Contrast Traditional and Activity-Based Costing Systems
transfer pricing 9.4 Describe the Effects of Various Decisions on Performance Evaluation of Responsibility Centers
treasurer 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
triple bottom line 13.1 Describe Sustainability and the Way It Creates Business Value
Turkey Hill 4.1 Distinguish between Job Order Costing and Process Costing
U
unavoidable cost 10.1 Identify Relevant Information for Decision-Making
Uncontrollable costs 9.4 Describe the Effects of Various Decisions on Performance Evaluation of Responsibility Centers
uncontrollable factors 12.1 Explain the Importance of Performance Measurement
underapplied overhead 4.6 Determine and Dispose of Underapplied or Overapplied Overhead
unfavorable variance 8.1 Explain How and Why a Standard Cost Is Developed
unit contribution margin 3.1 Explain Contribution Margin and Calculate Contribution Margin per Unit, Contribution Margin Ratio, and Total Contribution Margin, 10.6 Evaluate and Determine How to Make Decisions When Resources Are Constrained
unit contribution margin per production restraint 10.6 Evaluate and Determine How to Make Decisions When Resources Are Constrained
unit-level cost 6.3 Calculate Activity-Based Product Costs
Upper management 9.1 Differentiate between Centralized and Decentralized Management
V
variable cost 2.2 Identify and Apply Basic Cost Behavior Patterns
Variable costing 6.5 Compare and Contrast Variable and Absorption Costing
Variable costs 3.1 Explain Contribution Margin and Calculate Contribution Margin per Unit, Contribution Margin Ratio, and Total Contribution Margin, 10.1 Identify Relevant Information for Decision-Making
variable overhead efficiency variance 8.4 Compute and Evaluate Overhead Variances
variable overhead rate variance 8.4 Compute and Evaluate Overhead Variances
variance 8.1 Explain How and Why a Standard Cost Is Developed
Variance analysis 7.5 Explain How Budgets Are Used to Evaluate Goals, 8.5 Describe How Companies Use Variance Analysis
W
weighted average cost of capital (WACC) 12.3 Evaluate an Operating Segment or a Project Using Return on Investment, Residual Income, and Economic Value Added
Whistleblowers 1.4 Describe the Role of the Institute of Management Accountants and the Use of Ethical Standards
work in process inventory 4.2 Describe and Identify the Three Major Components of Product Costs under Job Order Costing, 4.2 Describe and Identify the Three Major Components of Product Costs under Job Order Costing, 4.3 Use the Job Order Costing Method to Trace the Flow of Product Costs through the Inventory Accounts, 4.3 Use the Job Order Costing Method to Trace the Flow of Product Costs through the Inventory Accounts
Z
Zero-based budgeting 7.1 Describe How and Why Managers Use Budgets
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