Get 2 days of premium access
Study Guides (380,000)
US (220,000)
LSU (10,000)
ACCT (200)
Study Guide

ACCT 2101- Final Exam Guide - Comprehensive Notes for the exam ( 22 pages long!)


Department
Accounting
Course Code
ACCT 2101
Professor
E. Briggs
Study Guide
Final

This preview shows pages 1-3. to view the full 22 pages of the document.
LSU
ACCT 2101
Final EXAM
STUDY GUIDE

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Chapter 1
Managerial Accounting
o Provides economic and financial information for managers and other internal users
Primary users of reports
o Internal users
Types of frequency of reports
o Internal reports as frequently as needed
Purpose of reports
o Special purpose for specific decisions
Content of reports
o Pertains to subunits of the business, very detailed, extends beyond double entry accounting to any relevant data
Verification process
o No independent audits
Planning
o Maximize short term profit and market share
o Commit to environmental protection and social programs
o Add value to the business
Directing
o Coordinate diverse activities and humnan resources
o Implement planned objectives
o Provide incentives to motivate employees
o Hire and train employees
o Produce a smooth running operation
Controlling
o Keeping activites on track
o Determine whether goals are met
o Decide changes needed
o May use an informal or formal system
Manufacturing costs
o Consists of activites and processes that convert raw materials into finished goods (direct materials + direct labor +
manufacturing overhead)
Direct materials
Raw materials basic materials and parts used in manufacturing process
Can be physically and directly associated with the finished product during the process
Indirect materials
No physical part of the finished product and are impractical to trace to the finished product
(considered part of manufacturing overhead
Direct labor
Work of factory employees
Indirect labor work of factory employees with no association to the product
Manufacturing overhead
find more resources at oneclass.com
find more resources at oneclass.com
You're Reading a Preview

Unlock to view full version

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Costs that are indirectly associated with manufacturing the product
Includes all manufacturing costs except direct materials and direct labor
Product costs vs period costs
o Product costs (direct materials, direct labor and manufacturing overhead)
Integral part of producing the product and recorded in “inventory acct
Not an expense (COGS) until the goods are sold
o Period costs charged to expense as incurred, non-manufacturing costs, includes all selling and admin expenses
Managerial cost concepts
o Direct materials ex: tires, spokes, handlebars
o Direect labor ex: salaries of employees who put the tires on the wheels
o Overhead ex: factory depreciation, lubricants, manager salary, maintenance employee salary
Income statement
o Merchandiser
Beginning inventory + cost of good purchased ending inventory = cost of goods sold
o Manufacturer
Beginning finished goods inventory + cost of good manufactured ending finished goods inventory =
COGS
Total manufacturing costs direct materials + direct labor + manufacturing overhead
Total work in process cost of beginning work in process and total manufacturing costs for the period
Value chain
o Just in time investory method - Inventory system in which goods are manufactured or purchased just in time for sale
o Total quality management - Reduce defects in finished products with the goal of zero defects
o Theory of constraints limit the companys potential profitability and specific approach to identify the constraints in
order to achieve company goals
o Enterprise resource planning software programs designed to manage all major business processes
o Activity based costing allocated overhead based on use of activites and results in more accurate product
costing in the value chain, evaluates operation and uses both financial and non financial meaures
o Sarbanes oxley act clarifies management responsibilities, requires cert by CEO and CFO
find more resources at oneclass.com
find more resources at oneclass.com
You're Reading a Preview

Unlock to view full version