Exam 5 Flashcards Preview

Managerial accouting > Exam 5 > Flashcards

Flashcards in Exam 5 Deck (11)
Loading flashcards...
1
Q

compares actual costs with budgeted costs.

A

performance report

2
Q

Compare actual costs with the budgeted costs for the budgeted level of activity(created in advanced)

A

static budget

3
Q

enables a firm to compute expected costs for a range of activity levels. The key is to know fixed and variable costs

A

flexible budget

4
Q

Delegating decision-making authority to the lower levels of management in a company

A

decentralization

5
Q

-gathering and using information
-focussing of central management
-training and motivating segment managers
enhanced competition, exposing segments to market forces.

A

reasons for decentralization

6
Q

refers to earnings before interest and taxes.

A

operating income

7
Q

all assets acquired to generate operating income, including cash, receivables, inventories, land, buildings, and equipment.

A

operating assests

8
Q

the profit earned per dollar of investment.

A

return on investment (ROI)

9
Q

s the difference between operating income and the minimum dollar return required on a company’s operating assets

A

residual income

10
Q

is after tax operating income minus the dollar cost of capital employed.

A

economic value added (EVA)

11
Q

is the price charged for a component by the selling division to the buying division of the same company.

A

transfer price