User:Jukeboksi/BBA studies/Accounting: Difference between revisions

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== Managerial Accounting ==

# lesson: '''Cost behaviour''' and '''[[w:cost object|cost object]]s

# lesson: '''[[w:Job costing|Job costing]]''' and '''[[w:overheads|overheads]]'''

# lesson: '''[[w:Activity based costing|Activity based costing]]'''

# lesson: '''[[w:Cost-volume-profit analysis|Cost-volume-profit analysis]]'''

# lesson: '''Master budgets''' and '''operational [[w:budget|budget]]s'''

# lesson: NO LESSON

# lesson: '''Short term business decisions'''

=== Lesson 1 Cost behaviour and cost objects ===

* '''A [[w:Cost object|Cost object]]s''' is a tangible input for a product manufactured/service provided, like labor or material. ( Wikipedia )

* '''[[w:Managerial accounting|Managerial accounting]]''' vs. '''[[w:financial accounting|financial accounting]]''' - differences and characteristics listed in hand-out

* Proper financial accounting is [[w:GAAP|GAAP]] + [[w:IFRS|IFRS]] compliant and is [[w:Certified Public Accountant|CPA]] [[w:auditing|audited]]

::: Certified Public Accountant (CPA) is the statutory title of qualified accountants in the United States ( Wikipedia )

* '''[[w:Generally accepted accounting principles|Generally accepted accounting principles]]''' ('''GAAP''') refer to the standard framework of guidelines for [[w:financial accounting|financial accounting]] used in any given jurisdiction; generally known as '''accounting standards''' or [[w:standard accounting practice|standard accounting practice]]. These include the standards, conventions, and rules that accountants follow in recording and summarizing and in the preparation of [[w:financial statements|financial statements]]. ( Wikipedia )

* '''[[w:International Financial Reporting Standards|International Financial Reporting Standards]] ([[w:IFRS|IFRS]]) are designed as a common global language for business affairs so that company accounts are understandable and comparable across international boundaries. ( Wikipedia )

* '''[[w:Inventory|Inventory]]''' or stock refers to the goods and materials that a business holds for the ultimate purpose of resale (or repair)

* '''[[w:w:Inventory management software|w:Inventory management software]]''' is a [[w:computer|computer]]-based system for tracking [[w:inventory|inventory]] levels, orders, [[w:sales|sales]] and deliveries. ( Wikipedia )

* '''[[w:Working capital|Working capital]]''' or '''operating capital''' is a financial metric which represents [[w:Accounting liquidity|operating liquidity|]] available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Gross working capital equals to current assets. Net working capital (NWC) is calculated as [[w:current assets|current assets]] minus [[w:current liabilities|current liabilities]]. ( Wikipedia )

=== Lesson 2 [[w:Job costing|Job costing]] and [[w:overheads|overheads]] ===

* '''[[w:Job costing|Job costing]]''' involves the calculation of costs involved in a construction "job" or the manufacturing of goods done in discrete batches. These costs are recorded in ledger accounts throughout the life of the job or batch and are then summarized in the final trial balance before the preparing of the job cost or batch manufacturing statement. ( Wikipedia )

* An '''[[w:overhead|overhead]]''' or '''overhead expense''' refers to an ongoing [[w:expense|expense]] of operating a business; it is also known as an "operating expense". Examples include rent, gas, electricity, and labour burden. The term ''overhead'' is usually used when grouping expenses that are necessary to the continued functioning of the business but cannot be immediately associated with the products or services being offered (i.e., do not directly generate [[w:profit (accounting)|profit|]]s). ( Wikipedia )

=== Lesson 3 Activity based costing ===

'''[[w:Activity based costing|Activity based costing]]''' ('''ABC''') is a costing methodology that identifies activities in an organization and assigns the cost of each activity with resources to all products and services according to the actual consumption by each. This model assigns more [[w:indirect costs|indirect costs]] ([[w:overhead (business)|overhead]]) into [[w:direct costs|direct costs]] compared to conventional costing. ( Wikipedia )

:::CIMA (Chartered Institute of Management Accountants) defines ABC as

:::: ''an approach to the costing and monitoring of activities which involves tracing resource consumption and costing final outputs.''

::::Resources are assigned to activities, and activities to cost objects based on consumption estimates. The latter utilize cost drivers to attach activity costs to outputs. ( Wikipedia )

=== Lesson 4 Cost-volume-profit analysis ===

'''[[w:Cost–volume–profit analysis|Cost–volume–profit analysis]]''' ('''CVP'''), in [[w:managerial economics|managerial economics]], is a form of [[w:cost accounting|cost accounting]]. It is a simplified model, useful for elementary instruction and for short-run decisions. ( Wikipedia )

=== Lesson 5 Master budgets and operational budgets ===

* A '''[[w:budget|budget]]''' is a quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. ( Wikipedia )

=== Lesson 6 NO LESSON ===

=== Lesson 7 Short term business decisions ===

'''Short term business decisions'''

* In '''[[w:finance|finance]]''' or financial operations of borrowing and investing, what is considered

:::*'''''long-term''''' is usually above 3 years, with

:::*'''''medium-term''''' usually between 1 and 3 years and

:::*'''''short-term''''' usually under 1 year. ( Wikipedia on [[w:Term (time)|Term]] )

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== Further reading ==

* [[Finance]]