MA 1 medio aperto

Financial accounting serves external parties like stockholders, creditors, and regulators, while managerial accounting provides information to internal managers for planning, control, and decision-making.

Cost classification serves purposes like assigning costs to cost objects, accounting for costs in manufacturing, predicting cost behavior, and making decisions.

Direct costs are easily traced to a unit of product or cost object, such as direct material and direct labor.

<p>Common costs are incurred to support multiple cost objects and cannot be directly associated with a single cost object.</p> Signup and view all the answers

<p>Product costs include direct materials, direct labor, and manufacturing overhead and are relevant for evaluating cost of goods sold and inventory on financial statements.</p> Signup and view all the answers

<p>Direct materials costs are transferred from raw materials to work in process when used in production.</p> Signup and view all the answers

<p>Product costs include direct labor, direct materials, and manufacturing overhead, and are assigned to units of product. Period costs include selling and administrative costs, and are assigned to the period when the cost is incurred.</p> Signup and view all the answers

<p>Variable costs vary in direct proportion to changes in the level of activity, while fixed costs remain constant regardless of changes in activity.</p> Signup and view all the answers

<p>Committed fixed costs are long-term and cannot be significantly reduced in the short term, while discretionary fixed costs may be altered in the short term by current managerial decisions.</p> Signup and view all the answers

<p>Opportunity cost is the potential benefit given up when one alternative is selected over another and should be explicitly considered in every decision.</p> Signup and view all the answers

<p>Sunk costs have already been incurred and cannot be changed now or in the future, and should be ignored when making decisions.</p> Signup and view all the answers

<p>The traditional format is used for external reporting purposes, while the contribution format is used primarily for managerial purposes.</p> Signup and view all the answers

<p>Managerial accounting is focused on providing quantitative information to the internal audience, particularly management at all levels of the organization. It does not require detailed information but rather aggregate measures of the company. Financial accounting, on the other hand, is more focused on external reporting and follows specific accounting principles and formats.</p> Signup and view all the answers

<p>The formula for determining break-even quantity is: $Q = \frac{FC},{P - V}$. This formula is essential for a business to determine the quantity of sales needed to cover all fixed and variable costs, ensuring that the business stays afloat.</p> Signup and view all the answers

<p>The audience of managerial accounting is the internal management, from top management to operating levels. They require quantitative information that is used at all levels of the organization, but do not need detailed information, only aggregate measures of the company.</p> Signup and view all the answers

<p>The scope of managerial accounting broadens significantly compared to financial accounting. Managerial accounting uses free formats and does not follow specific accounting principles, while financial accounting is based on principles to organize the information.</p> Signup and view all the answers

<p>The degree of operating leverage (DOL) measures the percentage change in profit associated with a change in volume or sales. It is calculated using the formula: $DOL = \frac{CM},{NI}$, where $CM$ is the contribution margin and $NI$ is the net income.</p> Signup and view all the answers

<p>Managers typically assume constant selling price, linear costs, and constant product mix for CVP calculations.</p> Signup and view all the answers

<p>Managerial accounting provides quantitative information to the management, including data collection, organization, and classification, as well as aggregate measures of the company. This information is used at all levels of the organization for decision-making purposes.</p> Signup and view all the answers

<p>Managerial accounting focuses on providing quantitative information to the internal management, uses free formats, and does not follow specific accounting principles. Financial accounting, on the other hand, is more focused on external reporting, follows specific accounting principles, and has set formats for organizing information.</p> Signup and view all the answers

<p>The contribution margin is the amount remaining from sales revenue after variable expenses have been deducted. It helps managers assess the impact on profits of changes in selling price, cost, or volume.</p> Signup and view all the answers

<p>Managerial accounting provides quantitative information to the internal management, focusing on aggregate measures of the company, while financial accounting is more focused on external reporting and follows specific accounting principles and formats.</p> Signup and view all the answers

<p>The contribution format income statement can be expressed as: [Sales - Variable\ Expenses = Contribution\ Margin - Fixed\ Expenses = Net\ Income]</p> Signup and view all the answers

<p>The margin of safety indicates how safe the company is in terms of reaching the break-even point and provides insight into the potential for profits.</p> Signup and view all the answers

<p>Financial accounting is primarily focused on external persons making financial decisions, with an emphasis on historical perspective, objectivity, and verifiability. Managerial accounting, on the other hand, is concerned with managers planning for and controlling an organization, with a focus on the future, relevance, precision, and timeliness.</p> Signup and view all the answers

<p>Financial accounting has a primary focus on companywide reports, must follow GAAP/IFRS and prescribed formats, and is mandatory for external reports. Managerial accounting, in contrast, focuses on segment reports, is not bound by GAAP/IFRS or any prescribed format, and is not mandatory.</p> Signup and view all the answers

<p>The IMA estimates that over 80% of professional accountants in the U.S. work in non-public accounting environments.</p> Signup and view all the answers

<p>To become a CMA, membership in the Institute of Management Accountants, a bachelor's degree, two years of relevant professional experience, and passage of the CMA exam are required.</p> Signup and view all the answers

<p>The CMA exam content specifications cover topics such as financial reporting, planning, performance, and control, as well as financial decision-making, risk management, and professional ethics.</p> Signup and view all the answers

<p>Managerial accounting courses aim to teach measurement skills that managers use to support planning, controlling, and decision-making activities, and focus on cost concepts.</p> Signup and view all the answers