A managerial accounting course covers the essential principles and practices of accounting from a management perspective, focusing on information that supports decision-making within an organization. These notes are well summarized.
Managerial Accounting
Marginal Cost
Extra cost of producing one additional unit of production.
Unit Cost
The average production cost per unit
Continuous Improvement
Ongoing small, incremental improvements in all parts of an
organization
Kaizan
short term approach to enhancing efficiency that focuses on improving
an existing process or an activity within a process
Direct Cost
a cost that can be easily and conveniently traced to a specified cost
object.
Direct Labor
the labor specifically used in the creation of a good.
Direct Materials
the materials specifically used in the creation of a good.
Indirect Cost
a cost that cannot be easily and conveniently traced to a specified cost
object, a part of manufacturing overhead.
Manufacturing Overhead
, everything that is indirectly involved with the production of a good. not
direct materials and not direct labor
Product/ Inventorial Cost
costs that are a necessary and integral part of producing the finished
product. shows up on the balance sheet until product is sold.
Period Cost
all non-manufacturing costs, deducted as an expense in the accounting
period in which they are incurred.
Variable Cost
a cost that rises or falls depending on how much is produced. they are
constant.
Fixed Cost
a cost that does not change, no matter how much of a good is produced
Differential Cost
A relevant costs: costs that can be avoided when alternatives are
changed.
Opportunity Cost
Cost of the next best alternative use of money, time, or resources when
one choice is made rather than another
Sunk Cost
Any cost that has already been incurred and that cannot be changed by
any decision made now or in the future. It is never relevant
TQM
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