Week 1 notes-9/2/15
Week 1 notes-9/2/15 BA 7000-901
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This 3 page Class Notes was uploaded by Christina Hamzey on Thursday September 3, 2015. The Class Notes belongs to BA 7000-901 at Wayne State University taught by Frank Lamarra in Summer 2015. Since its upload, it has received 103 views. For similar materials see Managerial Accounting in Business at Wayne State University.
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Date Created: 09/03/15
Week of9215 What is financial accounting Covers the past 4 statements 1 Income P amp L 2 Balance Sheet 3 Statement of Retained Earnings 4 Cash Flows Income Statement Revenue COGS Contribution Margin Contribution Margin expenses Net income loss Balance Sheet tangible and intangible re ect ownership company has in its assets Current assets life less than 1 year converted into cash in less than a year Examples of current assets Cash Accounts receivable 0 Inventory become COGS Longterm assets gt1 year Examples 0 Property plant and equipment 0 Buildings Current Accounts payable accrued liabilities Longterm Notes payable ex mortgage Common stock RIE Managerial Accounting Chapter 1 Managerial insiders 3 basic management functions Plan direct control Plan goal to add value to business Direct implement objectives to meet goals Control what could go wrong Find solutions to minimize risks 3 types of costs Direct materials Direct labor Manufacturing overhead all other costs that work together All costs under factory roof Can be extremely indirect example gas lights and depreciation on assets Costs continued Direct materials Direct labor Manufacturing overhead indirect material indirect labor all other under roof Product vs Period Costs Period costs sent right to the expense section do not go through Balance Sheet example shipping cost Merchandiser Manufacturer Costs of goods manufactured formula Beginning work in process inventory total manufacturing costs Total cost of work in process Total cost of work in process ending work in process inventory cost of goods manufactured Business ethics Frauds and lack of work ethics created the SarbanesOxley Act