Term
| Securities and Exchange Commission (SEC) |
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Definition
gov't agency authorized by Congress to regulate financial reporting practices of public companies
requires companies that issue securities to the public to file audited financial statements with gov't annually |
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Term
| Financial Accounting Standards Board (FASB) |
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Definition
allowing accounting profession considerable influence over financial accounting reports
private, independent standard-setting body established by the accounting profession that has been delegated the authority by the SEC to establish most of the accounting rules and regulations for public financial reporting |
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Term
| generally accepted accounting principles (GAAP) |
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Definition
| rules and practices that accountants agree to follow in financial reports prepared for public disribution |
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Term
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Definition
| benefits attained (value added) from a process should exceed the cost of the process |
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Term
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Definition
all cost related to obtaining or manufacturing a product intended for sale to customers
accumulated inventory accounts and expressed as costs of goods sold at point of sale
direct materials, direct labor, and manufacturing overhead |
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Term
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Definition
| strategy that sets the selling price at cost plus a makeup equal to percentage of the cost |
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Term
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Definition
| classifying and accumulating costs of individual inputs to determine cost of making a producting or providing a service |
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Term
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Definition
| asset account used to accumulate the product costs assoc. with completed products that have not yet been sold |
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Term
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Definition
| total cost of making products/ total number of products made |
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Term
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Definition
| physical commodities transformed into products through manufacturing process |
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Term
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Definition
| cost of raw materials used to make products that can be easily and convienently traced to those products |
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Term
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Definition
| wages paid to production workers whose efforts can be easily and conveniently traced to products |
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Term
| General, selling, and administrative costs (GS&A) |
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Definition
all ocsts not associated with obtaining or manufacturing a product
sometimes called period costs because normally expensed in period in which economic sacrifice is incurred |
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Term
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Definition
| cost that either cannot be easily traced to a cost object or for which it is not economically feasible to do so |
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Term
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Definition
| production costs that cannot be easily or economically traced directly to products |
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Term
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Definition
| process of dividing a total cost into parts and assigning the parts to relevent objects |
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Term
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Definition
| costs incurred before beginning the manufacturing process, such as research and development costs |
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Term
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Definition
| costs incurred after the manufacturing process is complete such as delivery costs and sales commissions |
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Term
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Definition
| costs associated with acquiring and retaining inventory including cost of storage space, lost, stolen, or damaged merchandise, insurance, personnel and management costs, and interest |
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Term
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Definition
inventory management system that minimizes amount of inventory on hand by avoiding inventory acquisition until products demanded by customers, therefore eliminating need to store inventory
can also eliminate opportunity costs such as lost revenue due to lack of availability in inventory |
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Term
| Sarbanes-Oxely Act of 2002 |
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Definition
| federal law that regualtes corporate governance |
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Term
| Features of managerial accounting |
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Definition
USERS:
insiders, executives, managers, operator
INFO TYPES:
economic and physical with financial data
LEVEL OF AGGREGATION:
local info on subunits of organization
REGULATION:
none, only value-added principle
INFO CHARACTERISTICS:
estimates for relevance and timeliness
TIME HORIZON:
past, present, future
REPORTING FREQUENCY:
continuous |
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Term
| Features of Financial Accounting |
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Definition
USERS:
outsiders, creditors, gov't, analysts, reporters
INFO TYPE:
financial data
LEVEL OF AGGREGATION:
global info on company as whole
REGULATION:
SEC, FASB, GAAP
INFO CHARACTERISTICS:
factual info by objectivity, reliability, consistency, and accuracy
TIME HORIZON:
past, historically based
REPORTING FREQUENCY:
delayed with emphasis on annual reports |
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Term
| Average cost per unit equation |
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Definition
| total cost/number of units |
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Term
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Definition
| opportunity, pressure, and rationalization |
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