Podcast
Questions and Answers
At some companies, what is the title given to the manager of the accounting function in a business unit?
At some companies, what is the title given to the manager of the accounting function in a business unit?
- Controller (correct)
- Senior Analyst
- Analyst
- Chief Financial Officer
Which of the following best describes the primary function of a vertical within a company?
Which of the following best describes the primary function of a vertical within a company?
- Providing support services to other departments.
- Developing and marketing products or services. (correct)
- Ensuring compliance with legal regulations.
- Managing the company's financial assets.
What is the key distinguishing characteristic of a horizontal department?
What is the key distinguishing characteristic of a horizontal department?
- They focus on product development and innovation.
- They provide support services to other departments. (correct)
- They directly generate revenue through sales.
- They manage the company's long-term strategic goals.
In some smaller companies, the title 'controller' might refer to the:
In some smaller companies, the title 'controller' might refer to the:
At Intel Corporation, what is the typical progression of job titles for accounting and finance employees?
At Intel Corporation, what is the typical progression of job titles for accounting and finance employees?
Which document is typically prepared by a vertical department to track its financial results?
Which document is typically prepared by a vertical department to track its financial results?
What is a typical vertical function in an airline?
What is a typical vertical function in an airline?
Which of the following departments is typically classified as a horizontal within a company?
Which of the following departments is typically classified as a horizontal within a company?
Why might a company choose to centralize finance and accounting functions as a horizontal department?
Why might a company choose to centralize finance and accounting functions as a horizontal department?
Which of the following is considered a horizontal function in a hotel?
Which of the following is considered a horizontal function in a hotel?
If a 'VP of Finance' reports to the CFO, what type of department do they likely work within?
If a 'VP of Finance' reports to the CFO, what type of department do they likely work within?
In a hospital setting, which of these represents a horizontal function?
In a hospital setting, which of these represents a horizontal function?
In a banking institution, what role is categorized under vertical functions?
In a banking institution, what role is categorized under vertical functions?
Which role is primarily responsible for technical accounting, accounting policy, credit, and tax within a company?
Which role is primarily responsible for technical accounting, accounting policy, credit, and tax within a company?
What is 'operations finance' also known as, when describing the role of financial professionals within verticals and horizontals?
What is 'operations finance' also known as, when describing the role of financial professionals within verticals and horizontals?
Which function is described as supporting the aggregation of financial statements from other units?
Which function is described as supporting the aggregation of financial statements from other units?
Which role is directly supervised by the Chief Financial Officer?
Which role is directly supervised by the Chief Financial Officer?
What is the relationship between the Vice President of Finance and the Chief Accounting Officer?
What is the relationship between the Vice President of Finance and the Chief Accounting Officer?
Which of these roles does not report directly to a Vice President?
Which of these roles does not report directly to a Vice President?
An individual in which of these roles would directly oversee the 'Verticals' and 'Horizontals' groups?
An individual in which of these roles would directly oversee the 'Verticals' and 'Horizontals' groups?
Which of the following is NOT at the same hierarchical level as the Chief Technology Officer?
Which of the following is NOT at the same hierarchical level as the Chief Technology Officer?
If the Chief Accounting Officer needs to escalate an issue, to whom would they most likely report the issue?
If the Chief Accounting Officer needs to escalate an issue, to whom would they most likely report the issue?
Which area's Vice President reports directly to the Executive Vice President but is NOT a 'business unit'?
Which area's Vice President reports directly to the Executive Vice President but is NOT a 'business unit'?
Which of these roles would be considered a 'Horizontal' team within the organizational structure?
Which of these roles would be considered a 'Horizontal' team within the organizational structure?
For a guitar manufacturing company, if the cost object is a single guitar, what type of cost would a production supervisor's salary be considered?
For a guitar manufacturing company, if the cost object is a single guitar, what type of cost would a production supervisor's salary be considered?
When the cost object is Legend Guitars' overall production process, how are the salaries of production supervisors classified?
When the cost object is Legend Guitars' overall production process, how are the salaries of production supervisors classified?
The classification of a cost as either direct or indirect is:
The classification of a cost as either direct or indirect is:
Which of the following best describes a direct cost in a manufacturing setting?
Which of the following best describes a direct cost in a manufacturing setting?
An example of an indirect cost related to the production of guitars would be:
An example of an indirect cost related to the production of guitars would be:
Which management process involves setting long-term goals for a company?
Which management process involves setting long-term goals for a company?
Which management process is primarily concerned with comparing actual results with expected results?
Which management process is primarily concerned with comparing actual results with expected results?
What is the main goal of the ‘control’ management process?
What is the main goal of the ‘control’ management process?
Which management process is responsible for defining the performance metrics that will be used to gauge the company's success?
Which management process is responsible for defining the performance metrics that will be used to gauge the company's success?
What is the primary difference between strategic planning and operational planning?
What is the primary difference between strategic planning and operational planning?
Which of these is NOT a core management process described?
Which of these is NOT a core management process described?
In the context of management processes, what does 'encouraging specific behaviors' refer to?
In the context of management processes, what does 'encouraging specific behaviors' refer to?
If a company uses key performance indicators (KPIs) to assess how well they are achieving goals, which management process is being used?
If a company uses key performance indicators (KPIs) to assess how well they are achieving goals, which management process is being used?
Which cost category includes expenses beyond direct materials and direct labor, accumulated during the manufacturing process?
Which cost category includes expenses beyond direct materials and direct labor, accumulated during the manufacturing process?
What is the main characteristic of costs that are classified as factory overhead?
What is the main characteristic of costs that are classified as factory overhead?
Which of the following is NOT typically a component of factory overhead costs?
Which of the following is NOT typically a component of factory overhead costs?
Where are costs such as factory insurance and maintenance typically categorized?
Where are costs such as factory insurance and maintenance typically categorized?
What does the classification of a cost as 'factory overhead' imply regarding its relationship to production?
What does the classification of a cost as 'factory overhead' imply regarding its relationship to production?
How do factory overhead costs relate to the overall cost of manufacturing a product?
How do factory overhead costs relate to the overall cost of manufacturing a product?
Which of the following is NOT a way factory overhead costs are typically incurred?
Which of the following is NOT a way factory overhead costs are typically incurred?
If a manufacturing company incurs costs for factory supervisors' salaries, where would these be categorized?
If a manufacturing company incurs costs for factory supervisors' salaries, where would these be categorized?
Flashcards
Vertical
Vertical
A company unit focused on specific products or services, responsible for profit and loss. For example, the Consumer Business Unit at McAfee.
Horizontal
Horizontal
A unit within a company that provides support services to other units, like marketing or finance. They don't generate revenue directly.
Income Statement
Income Statement
A financial statement that shows a company's revenue, expenses, and net income over a specific period.
Chief Financial Office (CFO)
Chief Financial Office (CFO)
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Chief Executive Officer (CEO)
Chief Executive Officer (CEO)
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Operations Finance
Operations Finance
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Functional Organization
Functional Organization
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Financial Planning and Analysis (FP&A)
Financial Planning and Analysis (FP&A)
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Controller
Controller
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Accounting and Finance VP
Accounting and Finance VP
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Consolidations
Consolidations
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Vertical Functions
Vertical Functions
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Horizontal Functions
Horizontal Functions
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Independence of Accounting and Finance
Independence of Accounting and Finance
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Service Company Functions
Service Company Functions
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Vertical Functions in Service Companies
Vertical Functions in Service Companies
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Direct Cost
Direct Cost
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Indirect Cost
Indirect Cost
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Cost Object
Cost Object
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Variable Cost
Variable Cost
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Fixed Cost
Fixed Cost
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Strategic planning
Strategic planning
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Measurement
Measurement
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Evaluation
Evaluation
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Control
Control
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Operational Planning
Operational Planning
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Force Majeure Clause
Force Majeure Clause
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Managerial Accounting
Managerial Accounting
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Managerial Accounting Reports
Managerial Accounting Reports
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VP, Consumer Business Unit
VP, Consumer Business Unit
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VP, Enterprise Business Unit
VP, Enterprise Business Unit
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VP, Sales & Marketing
VP, Sales & Marketing
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Chief Technology Officer (CTO)
Chief Technology Officer (CTO)
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General Counsel
General Counsel
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VP, Human Resources
VP, Human Resources
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Chet Financial Office
Chet Financial Office
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Factory Overhead Cost
Factory Overhead Cost
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Direct Cost Object
Direct Cost Object
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Indirect Cost Object
Indirect Cost Object
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Activity-Based Costing
Activity-Based Costing
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Study Notes
Managerial Accounting Overview
- Managerial accounting supports the management process
- It differs from financial accounting, which is for external users
- Its role within an organization is crucial for internal decision-making
Types of Costs
- Manufacturing Costs: Direct materials, direct labor, and factory overhead.
- Direct materials: Raw materials that are directly involved in the production process.
- Direct labor: Wages paid to employees directly involved in the manufacturing process.
- Factory overhead: Indirect costs associated with manufacturing. These include various indirect materials, indirect labor (employees not directly involved in the manufacturing process), and manufacturing support costs like depreciation of equipment.
- Period Costs: Non-manufacturing costs that are expensed in the period in which they are incurred. These costs include selling and administrative expenses.
- Prime Costs: The total of direct materials cost and direct labor cost.
- Conversion Costs: The total of direct labor cost and factory overhead cost.
Manufacturing Operations
- Nature of manufacturing: The process of converting raw materials into finished products. The process involves steps like receiving materials, cutting, assembling, and finishing.
- Direct costs: Costs that can be traced to a particular product or service. Examples include direct materials and direct labor.
- Indirect costs: Costs that cannot be traced directly to a particular product or service. Examples include factory overhead.
Financial Statements for Manufacturing Companies
- The balance sheet includes three inventory accounts (materials, work-in-process, and finished goods).
- The income statement includes the cost of goods sold. The cost of goods sold is calculated by adding the beginning finished goods inventory to the cost of goods manufactured, and subtracting the ending finished goods inventory.
Managerial Accounting Tools
- Cost-Volume-Profit Analysis: A technique that helps managers understand the relationships between costs, volume, and profits.
- Budgeting: A plan for the allocation of resources over a specific time period.
- Decentralization: Distributing decision-making authority to different organizational units.
- Differential Analysis: Used to make decisions based on comparing the cost of alternative solutions. Often used for short-term decisions.
- Capital Investment Analysis: Helps determine whether to invest in a capital project. Used for long-term decisions.
- Activity Analysis: Helps identify and eliminate wasteful activities.
- The Balanced Scorecard: a performance measurement system which considers financial, customer, learning, and internal processes perspectives.
- Corporate Social Responsibility (CSR): A concept focusing on the ethical and sustainable practices within a company.
Analysis for Decision Making
- Utilization rates: A measure of how effectively resources are used in service companies. Examples include occupancy rate in hotels or utilization rates for equipment in production facilities. A high utilization rate is desirable, as it means a company is maximizing the returns on its investment.
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Description
Test your knowledge on the roles and structure of accounting and finance functions within various companies. This quiz covers titles, department classifications, and typical job progressions in the field. Perfect for students and professionals interested in corporate finance structure.
