Involves the measuring, recording, and reporting of product costs. From the data accumulated, companies determine both the total cost and the unit cost of each product.

As a result of the Sarbanes-Oxley Act of 2002, managerial accounting reports must now comply with generally accepted accounting principles (GAAP).

Manufacturing consists of activities and processes that convert raw materials into finished goods. Manufacturing costs are typically classified into Direct Materials, Direct Labor and Manufacturing Overhead

Raw materials that can be physically and directly associated with the finished product during the manufacturing process are called:

The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is called:

A costs that are matched with the revenue of a specific time period rather than included as part of the cost of a salable product. These are non manufacturing costs which includes selling and administrative expenses.

A report that provides details on cost elements used in calculating cost of goods manufactured.

This refers to all activities associated with providing a product or service.

Companies allocate overhead based on each product’s use of activities in making the product. For example, companies can keep track of their cost of setting up machines for each batch of a production process. Then companies can allocate part of the total set-up cost to a particular product based on the number of set-ups that product required. This type of product costing is called.

Under this type of product costing, the company assigns costs to each job or to each batch of goods.

This type of product costing applies to manufactures with a large volume of similar products.

A performance-measurement approach that uses both financial and non-financial measures to evaluate all aspects of a company’s operations in an integrated fashion. The performance measures are linked in a cause and effect fashion to ensure that they all tie to the company’s overall objectives.

A rate based on the relationship between estimated annual overhead costs and expected annual operating activity, expressed in terms of a common activity base.

A study of the effects of changes in costs and volume on a company’s profits.

A key relationship in CVP analysis is the level of activity at which total revenues equal total costs (both fixed and variable). This is called:

The amount of revenue remaining after deducting variable costs.

The process used to identify the financial data that change under alternative courses of action is called:

The selling price that will provide the desired profit on a product when the seller has the ability to determine the product’s price.

A formal written statement of management’s plans for a specified future time period, expressed in financial terms.