BUS 254 Study Guide - Midterm Guide: Sunk Costs, Balanced Scorecard, Management Accounting

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 254
• Professor: Marco Faccone

Document Summary

Managerial accounting: internal users, internal reports as freq as needed, specific purpose, very detailed, no independent audits. 3 functions of management: planning, directing, controlling. Managerial accounting plays key part in value chain. Balanced scorecard (uses financial & non-financial measures) Important to be ethical for success of business. Intentional misstatement of financial reports/financial reporting fraud most costly. Recorded as inventory incurred (absorption), not expensed until finished goods sold. Moh: indirect materials, indirect labour, factory buildings/insurance/maintenance. Product cost = dm + dl + moh. Relevant range = normal operating parameters of business (min to max) High-low method classifies mixed cost into vc & fc. Cost accounting = measuring, recording, reporting of product costs. Job-order cost accounting sys = make customizable products. Poh = estimated annual oh costs / expected annual operating activity. Cogs method: overapplied credit cogs, debit moh. Proration method: overapplied credit wip + fg + cogs, debit moh. Benefits of abc: enhanced control of oh costs, better management decisions.