Term
| do you always or never include DIRECT FIXED COST? |
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Definition
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Term
| do you always or never include AVODIABLE FIXED COST? |
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Definition
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Term
| do you always or never include COMMON FIXED COST? |
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Definition
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Term
| do you always or never include ALLOCATED FIXED COST? |
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Definition
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Term
| The Joint Process Cost is Sunk. T/F |
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Definition
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Term
| There is an extra cost between the Split off point and the Sell Price after Cost. T/F |
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Definition
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Term
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Definition
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Term
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Definition
| non-numerical factors which could impact final decision such as:customer satisfaction, impact on society, etc. |
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Term
| What are the first three steps of Decision Making? |
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Definition
1) Clarify the decision program
2) Specify the Criterion(goal)
3) Identify the alternatives |
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Term
| What are the last three steps of Decision Making? |
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Definition
4) Develop a decision model
5) Collect the Data
6) Select alternative |
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Term
| What are the three characteristics of useful data |
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Definition
1) Relevant
2) Accurate
3) Timely |
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Term
| Opportunity cost is relevant. T/F |
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Definition
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Term
| Sunk cost is relevant. T/F |
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Definition
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Term
| When labor time is limited, do you decide how much of a product to produce based on CONTRIBUTION MARGIN OR CONTRIBUTION MARGIN per HOUR? |
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Definition
| CONTRIBUTION MARGIN PER HOUR |
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Term
When it comes to decision making, a managerial accountant is chiefly responsible for the:
A) Collection of data so that a decision can be made
B) Clarification of the decision problem
C) Selection of an alternative |
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Definition
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Term
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Definition
| When managers throughout an organization strive to achieve goals set by top management |
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Term
| What is DECENTRALIZATION? |
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Definition
| Allowing divisions to run themselves without a lot of input from Corporate headquarters |
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Term
| What is an INVESTMENT CENTER? |
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Definition
| Manager controls and is judged on total profit of a unit and the invested capital of that unit. ROI is a measure of performance for an investment center |
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Term
| What is one formula for ROI? |
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Definition
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Term
| What is a second formula for ROI? |
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Definition
| Sales margin x Capital Turnover |
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Term
| What is the formula for SALES MARGIN? |
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Definition
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Term
| What is the formula for CAPITAL TURNOVER? |
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Definition
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Term
| What is the formula for RESIDUAL INCOME? |
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Definition
| Income-[minimum rate(a %)x capital) |
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