管理会计英文第14版 Management Accounting 期末复习总结

Chapter 1

1.Management Accounting produces information for managers within an organization, and

financial for external, which is different.

2.Scorekeeping enables both internal and external to evaluate managerial performance.

3.Attention directing means reporting and interpreting information.

4.Simplicity is the watchword for accounting systems in service and non-profit organization.

5.It is not accountants but operating managers and their subordinates that evaluate accounting

reports and actual plan and control operations.

6.Accounting assists the managerial planning and control functions.

7.The treasurer(财务主管) is concerned mainly with the company’s financial matter, the

controller with operating matters, and accounting with controllership activities . Chapter 2

panies usually have more control on their costs than on their revenues.

9.In the traditional view, the most common resource cost driver is units produced, which in

ABC view, it is the output of resource and activities that can be measured.

10.For cost control, managers usually focus on managing the activities, not the products/service

themselves. Managers also need to know the receiving activity effects production costs.

11.Accountants apply a cost-benefit test when choosing a cost driver.

12.Changes in the cost drives do not affect the fixed costs IMMEDIATELY, but the variable costs.

13.Variable costs do not change per unit, but the total variable costs change in the direct

portion to the cost-driver activity.

14.Fixed costs do not change in total, but the per-unit fixed cost becomes progressively smaller

as the volume increases.

15.Relevant range is the limit of cost-driver level within which a specific relationship between

costs and the cost driver is valid.

16.When the cost information is within very short time and small changes, more costs are fixed

and fewer are variable.

17.Cost-Volume-Profit MODEL (CVP)

To apply CVP, we have some assumptions, such as we assume that we can classify the cost either to fixed or variable one.

THE BREAK-EVEN POINT

It is WRONG to call the study of CVP break-even analysis.

Sales -- Variable expenses -- Fixed expenses = 0 (Net Income)

CONTRIBUTION MARGIN METHOD

Changes in the variable and fixed expenses can change the break-even point.

If you have a targeted net income(≠0), just add it to fixed expenses, others do not change.

panies that spend heavily for ads are willing to do so because they have a high

contribution-margin percentage.

19.Changes in sales volume have a smaller effect on companies with less leverage.

20.Margin of safety= planned unit sales – break-even unit sales

the larger the margin of safety is, the less loss companies will be likely to bear.

21.Gross margin(gross profit) = sales price – cost of goods sold

Contribution margin = sales price – all variable expenses

Chapter 4

22.A cost management system (CMS) is a collection of tools and techniques that identify how

management decisions affect costs.

23.The cost accounting system is the most basic part of CMS, which can have a great effect on

manager’s decision.

24.Direct costs can be identified specifically and exclusively with a given cost objective in an

economically feasible (PHYSICAL) way, but indirect cannot be.

25.Unallocated costs are recorded but not assigned to any cost object.

26.To allocate indirect costs, we use cost allocation method.

27.Most cost allocation bases are cost drivers.

28.A cost pool is a group of individual costs that a company allocates to cost objects using a

single cost-allocation base.

29.Direct materials do not often include minor items.

30.Merchandising and manufacturing companies account for period cost(期间费用, which

never becomes the inventory) the same, while they treat product cost differently. Chapter 5

31.Relevant information is a prediction of the future, not a summary of the past.

32.Past figures themselves are NOT relevant to the decision itself.

Precise but irrelevant information is worthless for decision making.

33.Of the expected future information, only data that will differ from alternative to alternative

are relevant to the decision.

34.Absorption approach (External) Income=sales-manufacturing costs– non-manufacturing costs

Contribution approach(Internal)→Income= sales – variable costs –fixed costs

35.In situations where cost behaviors are most important, contribution approach will yield great

36.

the correct analysis focuses on determining relevant information and cost behavior.

The costs that are not affected are irrelevant, so managers can ignore them.

Do NOT use absorption approach, or we will count in all the manufacturing costs and get the gross margin, which is a fault.

We SHOULD use variable manufacturing costs which are useful to the analysis.

答题时候的框架：

Focus on relevant information ----- the differences in revenues and costs. In this problem……

Additional revenue

Less additional costs

Increase in operating income from special order