Manaac

• What is the purpose of planning in management?

  To develop the company's objectives and translate them into courses of action.
• What are the two classifications of planning in management?

  • Strategic planning: long-term actions to achieve objectives.
  • Operational planning: short-term actions for day-to-day operations.
• What is the process by which managers run day-to-day operations called?

  Directing.
• What does controlling involve in management?

  Monitoring operating results and comparing actual results with expected results.
• What is the philosophy of controlling by comparing actual and expected results called?

  Management by exception.
• What is the philosophy of continuous process improvement in management?

  • Continually improving employees.
  • Enhancing business processes.
  • Upgrading products.
• What is inherent in each management process discussed?

  Decision making.
• What are the two types of costs identified with cost objects?

  • Direct costs: can be traced to a cost object.
  • Indirect costs: cannot be traced to a cost object.
• How are direct costs defined?

  Costs that can be traced to a cost object.
• What are indirect costs?


  Costs that cannot be identified with or traced to a cost object.
• What does the cost of a manufactured product include?

  • Direct materials cost.
  • Direct labor cost.
  • Factory overhead cost.
• What is classified as direct materials cost?

  Costs that are integral to the finished product and significant in total cost.
• What is direct labor cost?

  The cost of employee wages that is integral to the finished product.
• What are factory overhead costs?

  Costs incurred in the manufacturing process other than direct materials and direct labor.
• What are prime costs and conversion costs?

  • Prime costs: direct materials and direct labor costs.
  • Conversion costs: direct labor and factory overhead costs.
• What are product costs?

  Manufacturing costs including direct materials, direct labor, and factory overhead.
• What are period costs?

  Selling and administrative costs that are not directly related to manufacturing.
• How are product costs recorded and reported?

  • Recorded as inventory on the balance sheet.
  • Reported as cost of goods sold on the income statement when sold.
• How are period costs reported?

  • Reported as expenses on the income statement.
  • Incurred in the period they occur.
  • Never appear on the balance sheet.
• What are the three types of inventory in manufacturing?


  1. Materials inventory: costs of direct and indirect materials not yet used.
  2. Work in process inventory: costs for products in the manufacturing process but not yet completed.
  3. Finished goods inventory: completed products that have not been sold.
• What is sustainability in business?

  The practice of maximizing profits while preserving the environment and future generations' needs.
• Why are sustainability practices important for a company?

  They ensure long-term success by maintaining natural resources and a productive social environment.
• What are eco-efficiency measures in managerial accounting?

  • Practices that enhance sustainability.
  • Aim to reduce waste and improve resource efficiency.