Term
| Term: Study of how specific costs respond to changes in the level of business activity |
|
Definition
|
|
Term
| Term: Identifies the activity that causes changes in the behavior of costs |
|
Definition
|
|
Term
| What are the three categories behavior is classified into? |
|
Definition
|
|
Term
| Term: Costs that vary in total directly and proportionately with changes in the level |
|
Definition
|
|
Term
| What are some types of variable costs? |
|
Definition
Direct materials
Direct labor
Cost of goods sold
Sales commission
Freight
Gasoline |
|
|
Term
| What type of companies have many variable costs? |
|
Definition
| Companies that rely on labor/sell a service |
|
|
Term
| What type of companies have few variable costs? |
|
Definition
| Companies with a high proportion of equipment/machinery |
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|
Term
| Term: Costs that remain the same in total regardless of changes in the activity level |
|
Definition
|
|
Term
| True/False: Variable costs usually have linear relationships with the amount sold |
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Definition
|
|
Term
| Term: Range over which a company expects to operate during the year |
|
Definition
|
|
Term
| Term: Costs that contain both a variable and fixed element |
|
Definition
|
|
Term
| How can a mixed cost be identified? |
|
Definition
| Change in total but not proportionately with changes in the activity level |
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|
Term
| Term: Type of analysis that uses total costs incurred at high and low levels of activity to classify mixed costs into fixed and variable components |
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Definition
|
|
Term
| Does the high-low method produce a precise amount? |
|
Definition
| No, only a reasonable amount |
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|
Term
| Term: Study of the effects of changes in costs and volume on a company's profits |
|
Definition
| Cost-Volume-Profit (CVP) analysis |
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|
Term
| What are the basic components of CVP analysis? |
|
Definition
Volume of level of activity
Unit selling prices
Variable cost per unit
Total fixed costs
Sales mix
CVP assumptions |
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|
Term
| What are the CVP analysis assumptions? |
|
Definition
-Behavior of costs/revenues linear in RR
-Costs accurately classified fixed or variable
-Changes in activity only factor that affects costs
-All units produced are sold
-Sales mix remains constant if >1 type of product sold |
|
|
Term
| What happens when the CVP analysis assumptions are invalid? |
|
Definition
|
|
Term
| Term: Classifies costs as variable or fixed and computes a contribution margin |
|
Definition
|
|
Term
| Term: Amount of revenue remaining after deducting variable costs |
|
Definition
|
|
Term
| How is the contribution margin often stated? |
|
Definition
| As a total amount and on a per unit basis |
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|
Term
| Term: Unit selling price - unit variable costs |
|
Definition
| Contribution margin per unit |
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|
Term
| Term: Contribution margin per unit divided by the unit selling price |
|
Definition
| Contribution margin ratio |
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|
Term
| Term: Level of activity in which total revenues = total cost |
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Definition
|
|
Term
| How can the break-even point be found? |
|
Definition
-Computed from equation
-Computed using contribution margin
-Derived from a CVP graph |
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|
Term
| How can the break-even point be expressed? |
|
Definition
| Either in sales units or sales dollars |
|
|
Term
| What does the contribution margin equal at the break-even point? |
|
Definition
|
|
Term
| Fixed costs/Contribution margin per unit= |
|
Definition
| Break-even point in units |
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|
Term
| Fixed costs/contribution margin ratio= |
|
Definition
| Break-even point in dollars |
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|
Term
| Term: Graph that shows the break-even point, costs, volume, and profits |
|
Definition
|
|
Term
| What is recorded along the horizontal axis of a CVP graph? |
|
Definition
|
|
Term
| What is recorded along the vertical axis of a CVP graph? |
|
Definition
|
|
Term
| Term: Indicates sales necessary to achieve a specific level of income |
|
Definition
|
|
Term
| How may required sales be expressed? |
|
Definition
|
|
Term
| Term: Difference between actual/expected sales and sales at break-even point |
|
Definition
|
|
Term
| How can the margin of safety be expressed? |
|
Definition
|
|
Term
| Term: Margin of safety in $/actual or expected sales |
|
Definition
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|
Term
| Term: Use of budgets in controlling operations |
|
Definition
|
|
Term
| Term: Compare actual results with planned objectives |
|
Definition
|
|
Term
| What is a budget report based on? |
|
Definition
| The belief that planned objectives lose much of their potential value without some monitoring of progress along the way |
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|
Term
| Each part of a master budget is called a ____ _____ |
|
Definition
|
|
Term
| Term: Projection of budget data at one level of activity |
|
Definition
|
|
Term
| When is being under and over budget favorable and unfavorable? |
|
Definition
Sales:
Over budget - favorable
Under budget - unfavorable
Costs:
Over budget - unfavorable
Under budget - favorable |
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|
Term
| When are static budgets appropriate in evaluating a manager's effectiveness in controlling costs? |
|
Definition
-Activity level closely approximates master budget budget activity level
-Behavior of costs in response to changes in activity is fixed |
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|
Term
| What is the static budget appropriate for? |
|
Definition
-Fixed manufacturing costs
-Fixed selling and administrative expenses |
|
|
Term
| Term: Projects budget data for various levels of activity |
|
Definition
|
|
Term
| What are the four steps in preparing a flexible budget? |
|
Definition
1. Identify activity index and relevant range
2. Identify variable costs and determine budgeted variable cost per unit for each cost
3. Identify fixed costs and determine budgeted amount for each cost
4. Prepare budget for selected increments of activity within relevant range |
|
|
Term
| What are the two sections flexible budget reports consist of? |
|
Definition
-Production data for a selected activity of index
-Cost data for variable and fixed costs |
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|
Term
| What are the two areas a manager can be evaluated from a flexible budget report? |
|
Definition
-Production control
-Cost control |
|
|
Term
| Term: Top manager's review of a budget report is focused entirely or primarily on differences between actual and planned expenses |
|
Definition
|
|
Term
| What is the criteria for management by exception? |
|
Definition
-Materiality
-Controlability |
|
|
Term
| Term: % difference from budget |
|
Definition
|
|
Term
| Term: Involves accumulating and reporting costs on the basis of the manager who has the authority to make the day-to-day decisions about the items |
|
Definition
| Responsibility accounting |
|
|
Term
| When can responsibility accounting be used? |
|
Definition
When all of the following apply:
-Costs and revenues directly associated with specific level of management responsibility
-Costs and revenues can be controlled by employees at level of responsibility they are associated with
-Budget data can be developed for evaluating a manager's effectiveness in controlling the cost/revenues |
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|
Term
| Term: Control of operations is delegated to many managers throughout organization |
|
Definition
|
|
Term
| Term: Area of responsibility in decentralized organization |
|
Definition
|
|
Term
| How does reporting costs and revenues under responsibility accounting differ from budgeting? |
|
Definition
-Distinction between controllable and uncontrollable items
-Reports either emphasize or include only items controllable by individual manager |
|
|
Term
| Term: Cost a manager has control over |
|
Definition
|
|
Term
| Term: Costs incurred indirectly and allocated to a responsibility level |
|
Definition
|
|
Term
| Term: Involves the preparation of a report for each level of responsibility in the company's organization chart |
|
Definition
| Responsibility reporting system |
|
|
Term
| What are the three types of responsibility centers? |
|
Definition
Cost center
Profit center
Investment center |
|
|
Term
| Term: Incurs costs and expenses but does not directly generate revenues |
|
Definition
|
|
Term
| What departments are usually cost centers? |
|
Definition
-Production departments
-Service departments |
|
|
Term
| Term: Incurs costs and expenses and also generates revenues |
|
Definition
|
|
Term
| Term: Incurs costs and expenses and generates revenues and has control over decisions regarding assets available for use |
|
Definition
|
|
Term
| Term: [Traceable costs] Relate specifically to one center and are incurred for the sole benefit of that center |
|
Definition
|
|
Term
| Term: [Common costs]Pertain to a company's overall operating activities and are incurred for the benefit of more than one profit center |
|
Definition
|
|
Term
| Term: Excess of contribution margin over controllable fixed costs |
|
Definition
|
|
Term
| Are noncontrollable fixed costs reported in the responsibility report? |
|
Definition
|
|
Term
| What is considered to be the best measure of the manager's performance in controlling revenues and costs |
|
Definition
|
|
Term
| What are some judgmental factors in ROI? |
|
Definition
-Valuation of operating assets
-Margin (income) measure |
|
|
Term
| What can the valuation of operating assets be valued at? |
|
Definition
-Acquisition
-Book value
-Appraised value
-Market value |
|
|
Term
| How can ROI be increased? |
|
Definition
-Increase controllable margin
-Reducing average operating assets |
|
|
Term
| How can controllable margin be increased? |
|
Definition
-Increasing sales
-Reducing variable and controllable fixed costs |
|
|
Term
| What is the formula for ROI? |
|
Definition
| Controllable margin/Average operating assets |
|
|
Term
| Term: Management function that compares actual results with budget goals |
|
Definition
|
|
Term
| What are the behavioral principles? |
|
Definition
-Managers should have direct input into processing of establishing budget goals of their area of responsibility
-Evaluation of performance based entirely on matters controllable by manager being evaluated
-Top management should support evaluation process
-Evaluation process must allow managers to respond to evaluations
-Evaluation should identify both good and poor performance |
|
|
Term
| Where is responsibility accounting especially valuable? |
|
Definition
|
|
Term
| What does financial information relate to? |
|
Definition
| Revenues and costs and their effect on a company's overall profitability |
|
|
Term
| What does non-financial information relate to? |
|
Definition
| Factors such as effect of decision on employee turnover, the environment, or the overall image of the company |
|
|
Term
| What are the different types of incremental analysis? |
|
Definition
-Accept an order at a special price
-Make or buy
-Sell or process further
-Retain or replace equipment
-Eliminate an unprofitable resource
-Allocate limited resources |
|
|
Term
| When is accepting an order at a special price acceptable? |
|
Definition
-It doesn't go over 100% plant capacity
-Revenue per unit must be greater than variable cost per unit |
|
|
Term
| Term: Potential benefit that may be obtained by following an alternative course of action |
|
Definition
|
|
Term
| Is the book value of the older machine relevant? |
|
Definition
|
|
Term
| What parts of retaining/replacing equipment are irrelevant and relevant? |
|
Definition
Irrelevant - sunk cost
Relevant - Trade-in allowance/cash disposal |
|
|
Term
| Term: Next generation of internet use - more mature, distinctive communication platform characterized by new qualities such as collaboration, sharing, and free |
|
Definition
|
|
Term
| Term: Consists of non-proprietary hardware and software based on publicly known standards that allow third parties to create add-on products to plug into or interoperate with the system |
|
Definition
|
|
Term
| Term: Contains instructions written by a programmer specifying the actions to be performed by computer software |
|
Definition
|
|
Term
| Term: Only software whose source code is made available free for any third party to review and modify |
|
Definition
|
|
Term
| Term: Created and updated by many users for many users |
|
Definition
| User-contributed/generated content |
|
|
Term
| Term: One of the most popular forms of user-generated content in which buyers post feedback on sellers |
|
Definition
|
|
Term
| Term: Set of tools that supports work of teams/groups by facilitating the sharing and flow of information |
|
Definition
|
|
Term
| Term: Collaborating and tapping into core knowledge of all employees, partners, and customers |
|
Definition
|
|
Term
| Term: Most common form of collective intelligence which involves capturing, classifying, evaluating, retrieving, and sharing information assets to provide context for effective decisions and actions |
|
Definition
| Knowledge management (KM) |
|
|
Term
| Term: Supports the capturing, organization, and dissemination of knowledge |
|
Definition
| Knowledge management system (KMS) |
|
|
Term
| What are the two categories that intellectual and knowledge-based assets fall into? |
|
Definition
|
|
Term
| Term: Anything that can be documented, archived, and codified with the help of IT |
|
Definition
|
|
Term
| Give an example of explicit knowledge |
|
Definition
Patents
Trademarks
Business plans
Marketing research
Customer lists |
|
|
Term
| Term: Knowledge contained in people's heads |
|
Definition
|
|
Term
| What is the most common form of common intelligence outside an organization? |
|
Definition
|
|
Term
| Term: Wisdom of the crowd |
|
Definition
|
|
Term
| Term: Communication in which message and reply do not occur at the same time |
|
Definition
| Asynchronous communication |
|
|
Term
| Term: Communications that occur at the same time |
|
Definition
| Synchronous communication |
|
|
Term
| Term: Websites that rely on user participation and user-generated content |
|
Definition
|
|
Term
| Term: Application that connects people by matching profile information |
|
Definition
|
|
Term
| Term: Practice of expanding your business and/or social contacts by constructing a personal network |
|
Definition
|
|
Term
| Term: Maps group contacts identifying who knows/works with each other |
|
Definition
| Social networking analysis (SNA) |
|
|
Term
| Term: Specific keywords or phrases incorporated into website content for means of classification |
|
Definition
|
|
Term
| Term: Collaborative activity of making shared online content with keywords or tags to organize it for future navigation |
|
Definition
|
|
Term
| Term: Similar to taxonomy except that crowdsourcing determines tags |
|
Definition
|
|
Term
| Term: Locally stored address or URL of a file or internet page saved as a shortcut |
|
Definition
|
|
Term
| Term: Allows user to share, organize, search, and manage bookmarks |
|
Definition
|
|
Term
| What are the tools of collaborating business 2.0 |
|
Definition
|
|
Term
| Term: Online journal that allows users to post their own comments, graphics, and videos |
|
Definition
|
|
Term
| Term: Practice of sending brief posts (140-200 characters) to a personal blog, either publicly or to a private group of subscribers who can read the posts as IMs or texts |
|
Definition
|
|
Term
| How can microblogging be accomplished? |
|
Definition
|
|
Term
| Term: Web format used to publish frequently updated works in a standardized format |
|
Definition
| Real simple syndication (RSS) |
|
|
Term
| Term: Type of collaborative website that allows users to add, remove, or change content which can be easily reorganized as required |
|
Definition
|
|
Term
| Term: How products in a network increase in value to users as the number of users increases |
|
Definition
|
|
Term
| Term: Website or web application that uses content from more than one source to create a new product or service |
|
Definition
|
|
Term
| Term: Set of routines, protocols, and tools for building software applications |
|
Definition
| Application programming interface (API) |
|
|
Term
| What is a mashup usually sourced from? |
|
Definition
|
|
Term
| Term: Provide a visual interface to build a mashup |
|
Definition
|
|
Term
| What are the challenges of business 2.0? |
|
Definition
-Technology dependence
-Information vandalism
-Violations of copyright and plaigarism |
|
|
Term
| Term: Component of web 3.0 that describes things in a way that computers understand |
|
Definition
|
|
Term
| Term: Use of strategies and technologies to transform government by improving delivery of services and enhancing quality of interactions between citizen/consumer and all branches of government |
|
Definition
|
|
Term
| Term: Ability to purchase goods and services through a wireless internet-enabled device |
|
Definition
| Mobile business/Ebusiness/Ecommerce |
|
|
Term
| Term: Enable transmission of data over public or private networks |
|
Definition
| Telecommunication systems |
|
|
Term
| Term: Communications, data exchange, and resource-sharing system created by linking two or more computers and establishing protocols so they can work together |
|
Definition
|
|
Term
| Term: Designed to connect a group of computers in close proximity |
|
Definition
|
|
Term
| What is a LAN line useful for? |
|
Definition
| Sharing files, printers, games, and apps |
|
|
Term
| Term: Spans a large area and connects multiple smaller networks |
|
Definition
|
|
Term
| Term: Large computer network usually spanning a city |
|
Definition
| Metropolitan network (MAN) |
|
|
Term
| How are networks differentiated? |
|
Definition
Architecture
Topology
Protocols
Media |
|
|
Term
| Term: Any network without a central file server that all computers have access to |
|
Definition
| Peer-to-peer (P2P) network |
|
|
Term
| Term: Computer designed to request information from server |
|
Definition
|
|
Term
| Term: Computer designed to provide information in response to external requests |
|
Definition
|
|
Term
| Term: Model for applications in which the bulk of back-end processing, such as performing a physical search of a database, takes place on a server, while the front-end processes, which include communicating with the users, is handled by the client |
|
Definition
|
|
Term
| Term: Operating system that runs a network, steering information and managing security and users |
|
Definition
| Network operating system (NOS) |
|
|
Term
| Term: Sending computer divides a message into units called packets which contain addresses of destination computer |
|
Definition
|
|
Term
| Term: Intelligent connecting device that examines each packet of data and decides which way to send to destination |
|
Definition
|
|
Term
| Term: Geometric arrangement of actual physical organization of the computers in a network |
|
Definition
|
|
Term
| Term: Standard that specifies format of data as well as rules during transmission; language of computers |
|
Definition
|
|
Term
| Term: Capability of two or more computer to share data and resources, even though made by different manufacturers |
|
Definition
|
|
Term
| What are the most common interoperabilities? |
|
Definition
|
|
Term
| Term: Physical and data layer technology for LAN networking |
|
Definition
|
|
Term
| What are the four characteristics of ethernet? |
|
Definition
Easy
Low-cost
Extensive flexibility
Successful interconnection |
|
|
Term
| What is the most common telecommunication protocol? |
|
Definition
|
|
Term
| Term: Provides technical foundation for the public internet as well as for large numbers of private networks |
|
Definition
|
|
Term
| What is the key achievement of TCP/IP? |
|
Definition
| Flexibility with respect to lower-leveled protocols |
|
|
Term
| Term: Provides transport functions, ensuring among other things that the amount of data received is the same as the amount transmitted |
|
Definition
|
|
Term
| Term: Provides the addressing and routing mechanism that acts as a postmaster |
|
Definition
|
|
Term
| Describe the four-layer reference model? |
|
Definition
-Application layer: Window for users/apps to access network services
-Transport layer: Handles end-to-end packet transportation
-Internet layer: Formats data and packets, adds header containing packet sequence and address of receiving device, species the services required from the network
-Network interface layer: Places data packets on network for transmission |
|
|
Term
| Name and describe the TCP/IP applications? |
|
Definition
-File transfer protocol (FTP): Allows files to be down/uploaded onto network
-Simple mail-transfer protocol (SMTP): TCP/IP's messaging system for email
-Telnet protocol: Provides terminal emulation that allows a pc or workstation to act as a terminal, or access device, for server
-Hypertext transfer protocol (HTTP): Allows web browsers and servers to send and receive web pages
-Simple network management protocol (SNMP): Allows management of networked nodes to be managed from a single point |
|
|
Term
| What is the other model aside from the four-layer reference model? |
|
Definition
| Seven-layer Open System Interconnection (OSI) reference model |
|
|
Term
| What are the seven-layers of the OSI reference model? |
|
Definition
7. Application
-Presentation
-Session
-Transport
-Network
-Data link
1.Physical |
|
|
Term
| What do layers 1-3 of the OSI reference model represent? |
|
Definition
|
|
Term
| What do the upper layers (4-7) of the OSI model represent? |
|
Definition
| End-to-end communications |
|
|
Term
| Why didn't OSI replace TCP/IP? |
|
Definition
|
|
Term
| Term: Various types of media used to carry signal between computers |
|
Definition
| Network transmission media |
|
|
Term
| What are the two types of transmission media? |
|
Definition
Wire (guided)
Wireless (unguided) |
|
|
Term
| Term: Transmission material manufactured so signals confine to narrow path and will behave predictably |
|
Definition
|
|
Term
| What are the three most common guided materials? |
|
Definition
Twisted-pair wiring
Coaxial cable
Fiber-optic cable |
|
|
Term
| Term: Type of cable composed of four or more copper wires twisted around each other within a plastic sheath |
|
Definition
|
|
Term
| Why is twisted-pair wiring twisted? |
|
Definition
| To reduce outside electrical interference |
|
|
Term
| Which transmission media is the most popular and best for LAN? |
|
Definition
| Unshielded twisted pair (UTP) |
|
|
Term
| Term: Cable that carry a wide range of frequencies with low signal loss |
|
Definition
|
|
Term
| Term: Technology associated with transmission of information as light impulses along a glass wire or fiber |
|
Definition
| Fiber-optic/Optical fiber |
|
|
Term
| What are the disadvantages of fiber-optic media? |
|
Definition
-More fragile than wire
-Difficult to split
-Labor intensive to install |
|
|
Term
| Term: Natural parts or Earth's environment that can be used as physical paths to carry electrical signals |
|
Definition
|
|
Term
| Term: Uses TCP/IP technology to transmit voice calls over long-distance telephone lines |
|
Definition
|
|
Term
| Term: Way to use public telecommunication infrastructure (internet) to provide secure access to an organization's network |
|
Definition
| Virtual private network (VPN) |
|
|
Term
| Term: Private network provided by third party for exchanging information through a high-capacity connection |
|
Definition
| Value-added network (VAN) |
|
|
Term
| Term: Difference between the highest and lowest frequencies that can be transmitted on a single medium; measure of medium's capacity |
|
Definition
|
|
Term
| Term: High-speed internet connections transmitting data at speeds greater than 200Kbps |
|
Definition
|
|
