ACTG 12 with Wendy Donohoe Week 1 Notes
ACTG 12 with Wendy Donohoe Week 1 Notes ACTG 12
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This 2 page Class Notes was uploaded by Thomas Ariniello on Saturday January 9, 2016. The Class Notes belongs to ACTG 12 at Santa Clara University taught by Wendy Donohoe in Winter 2016. Since its upload, it has received 35 views. For similar materials see Intro to Managerial Accounting in Accounting at Santa Clara University.
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Eugh...this class is soo hard! I'm so glad that you'll be posting notes for this class
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Date Created: 01/09/16
Accounting 12 Notes Week 1 Day 1: 1/4/16 Chapter 1: Financial Accouting Managerial Accounting What Income Statement, Statement of SE (RE), Reports Balance Sheet, Cash Flow Statement Who Outsiders: Shareholders (Current and Corporate Insiders: Management Group Potential), Analysts, Creditors, Competit(Line, Staff) IRS, Auditors, SEC How GAAP/IFRS Economic Relevance: Not how costs function in Finc Stmts, but how they behave When What happened in Past What’s happening now to forecast the future Why Help Outsiders determine whether to get To provide Management with info so it can involved with company Plan, Do, and Check — Total Quality Management (TQM) Income Statement Revenue —COGS Gross Profit (Margin) —Operating Expenses (Selling, G&A) Net Operating Income Non-Operating Income —Non-Operating Expenses Pre-Tax Income —Income Tax Net Income -Costs function as Product Costs (COGS) or Period Costs (SG&A) -Match the cost of the product to the revenue generated by the product -Match the operating expenses to the period of time we are in -Gross Margin — Viability Number -Net Operating Income — Report Card Number, Managers have control of everything above -Invergence, 60 Minutes interview with Tim Cook Theory of Constraints -Process Re-engineering -Restructuring the company heavily Week 1 Day 2: 1/6/16 Chapter 2 -Merchandise Inventory: CurrentAsset account that deals with a merchandiser: retailer, wholesaler, distributor -Variable Cost: Cost that changes in direct correlation to volume -Raw Materials: Inventory account, D: Beginning Balance + Purchases C: Raw Materials Used -Work in Process (WIP): Inventory account, BB + RMU + Direct Labor + Mfg OH C: CGMfd -Prime Costs: Direct components of producing a product (RM, DL) -Manufacturing overhead: Indirect product costs incurred in manufacturing of product but not directly involved in the process (factory management salaries, electricity, depreciation) -Absorbed into WIP account as debit -Finished Goods: InventoryAccount, D: BB + CGMfd C: COGS -Unit Product Cost:Average cost per unit that includes fixed and variable costs. Want as low as possible Week 1 Day 3: 1/8/16 -Manufacturing Overhead is a clearing account — at the end, the balance will be zero -Marketing’s #1 job is to figure out how much your product costs so you can sell it at a higher price
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