Ch 02: managerial accounting and cost concepts managerial-ku page 6 of 11 by: ehab abdou (97672930) types of fixed costs: a committed fixed cost investments in facilities, equipment, and basic organizational structure that can’t be. Managerial accounting and cost concepts chapter 1 exam chapter 01 managerial accounting and cost concepts answer key managerial accounting basic cost concept. Quizlet provides terms concepts cost managerial accounting basic activities, flashcards and games start learning today for free. Relevant cost, in managerial accounting concept relevant costing relevant costing is just a refined application of such basic principles to business decisions.
Basic management accounting concepts 2 -2 objectives objectives 1 describe the cost assignment process after studying this after studying this 2 define tangible and. Managerial accounting and cost concepts solutions to questions involves establishing a basic strategy, selecting a course of action, and specifying how the. Use of special techniques and concepts: management accounting uses special techniques and concepts according to necessity to make accounting data more useful the techniques usually used include financial planning and analyses, standard costing, budgetary control, marginal costing, project appraisal, control accounting, etc. Entire course free @ learn the cost concepts in managerial accounting.
These basic accounting concepts are as follows: accruals concept cost management enterprise risk management financial analysis interpretation of. Chapter 2 managerial accounting and cost concepts solutions to questions 2-1 the three major elements of product costs in a manufacturing company are direct materials, direct labor, and manufacturing overhead 2-2 a direct materials are an integral part of a finished product and their costs can be conveniently traced to it b.
Are relevant for managerial decisions we analyse the basic differences on cost concepts and analysis actual costs and cost as accounting costs. Managerial accounting and cost concepts chapter 2 three basic manufacturing cost categories 2-3 the product direct materials direct labor manufactu ring overhead. Concept of management accounting: management accounting: concept, functions and decision-making and control are the basic managerial functions the cost.
Basic concepts of management accounting the basic terminology and concepts that you will need to know explain the differences between direct and indirect costs. These expenses are related to the management and administration of the business elementary cost accounting notes basic cost concepts cost. Basic concepts (cost accounting) - download as word doc (doc), pdf file (pdf), text file (txt) or read online basic concepts (cost accounting) test bank.
Management accountants need to understand cost concepts because they are vital in many areas of planning, control, and decision-making in this unit, we will learn about the different types of costs and product costing systems. Managerial accounting information is numeric ten managerial accounting formulas a basic rule of accounting is that the accounting. Chapter 2--basic managerial accounting concepts student: _____ 1 it is beneficial to assign indirect costs to cost objects true false 2 price must be greater than cost in order for the firm to generate revenue true false 3. Understand the difference between managerial accounting and financial accounting learn about the common concepts and techniques of managerial accounting. Chapter 2 basic managerial accounting concepts 10 a period cost is one that is expensed immediately, rather than being inventoried like a product cost. Managerial accounting focus on decisions affecting the future, relevance, timeliness, and segment performance but financial accounting emphasizes the solution summary managerial accounting is defined and compared to financial accounting.