Accounting test 1
The 3 different costs related to making the product
DM, DL, MOH
when are costs incurred
along the value chain
why do service companies not have product cost?
because they dont sell tangible products
Similarity between financial and managerial accounting
both use information from the financial accounting system
Advisory Accounting
consulting side of accounting and focuses on using accounting knowledge to improve a companys operations; help with decision making
What costs are easy and convenient to trace
direct
product costs can be ____ or ____
direct, indirect
product costs = ______ costs (factory or office)
factory
public accounting
firms that have clients
two ways to increase profit
increase revenue decrease expenses
period costs are expensed when _____
incurred
managerial accounting consists of ____ users and _____ time
internal, future
product costs are first _____ then turned into ______
inventoried, COGS
product costs are related to _____ the product
making
which company has product costs
merchandiser and manufacturer
period costs = ______ costs (factory or office)
office
period costs are expensed as ______
operating expenses (SG&A)
What does the business cycle consist of (3)
plan, direct, control
Tax acocunting
prepares tax returns and minimizes future tax liabilities
cost helps set the ____
price
equation for profit
revenue - expenses
Audit accounting
reviewing the work of others to determine if the output is "free of material errors"
which company has period costs
service
product costs are expensed when items are ____
sold
managers group costs incurred along the value chain depending on ____
when the costs are incurred
industry accounting
working for a specific businesses' accounting firm