MGT 5 Study Guide - Quiz Guide: Direct Labor Cost, Perpetual Inventory, Subledger

• School: UCSD
• Department: Rady School of Management
• Course: MGT 5
• Professor: Wade Lindenberger

Document Summary

Differences between financial and managerial accounting (pg. Managerial accounting deals with internal reports and users. Financial accounting deals with external users and financial statements. External users include stockholders, creditors, and regulators: three management functions (pg. Planning requires managers to look ahead and to establish objectives such as maximizing short-term profits and market share, maintaining a commitment to environmental protection, and contributing to social programs. Directing involves coordinating a company"s diverse activities and human resources to produce a smooth-running operation. Controlling process of keeping the company"s activities on track: three classes of manufacturing costs (pg. Direct labor- work of factory employees that can be physically and directly associated with converting raw materials into finished goods. Manufacturing overhead- costs that are indirectly associated with manufacturing the finished product and includes all other manufacturing costs: definition of period costs vs. product/manufacturing costs (pg.