New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here


by: Jarvis Reilly DDS


Jarvis Reilly DDS
GPA 3.8


Almost Ready


These notes were just uploaded, and will be ready to view shortly.

Purchase these notes here, or revisit this page.

Either way, we'll remind you when they're ready :)

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

Class Notes
25 ?




Popular in Course

Popular in Accounting

This 16 page Class Notes was uploaded by Jarvis Reilly DDS on Saturday September 26, 2015. The Class Notes belongs to ACCT 202 at Clemson University taught by Staff in Fall. Since its upload, it has received 36 views. For similar materials see /class/214239/acct-202-clemson-university in Accounting at Clemson University.




Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 09/26/15
Chapter 1 Budget A detailed plan for the future that is usually expressed in formal quantitative terms p 3 Business process A series of steps that are followed in order to carry out some task in a business p 11 Constraint Anything that prevents you from getting more of what you want p 12 Controlling The process of gathering feedback to ensure that a plan is being properly executed or modified as circumstances change p 3 Corporate social responsibility A concept whereby organizations consider the needs of all stakeholders when making decisions p 17 Decision making Selecting a course of action from competing alternatives p 3 Enterprise risk management A process used by a company to identify its risks and develop responses to them that enable it to be reasonably assured of meeting its goals p 9 Financial accounting The phase of accounting that is concerned with reporting historical financial information to external parties such as stockholders creditors and regulators p 2 Lean Production A management approach that organizes resources such as people and machines around the ow of business processes and that only produces units in response to customer orders p 11 Managerial accounting The phase of accounting that is concerned with providing information to managers for use within the organization p 2 Performance report A report that compares budgeted data to actual data to highlight instances of excellent and unsatisfactory performance p 4 Planning The process of establishing goals and specifying how to achieve them p 3 Segment A part or activity of an organization about which managers would like cost revenue or profit data p 3 Strategy A company39s game plan for attracting customers by distinguishing itself from competitors p 8 Theory of Constraints A management approach that emphasizes the importance of managing constraints p 12 ue chain 7 The ma ur buuness runebuns that add wine in a cumpany s pmdurls and sermees such as resmren and devalupmaupmduc1 desigu nanumunng madreung dlsmbuuun and Uslnmer sermee p 11 cmpterz Aunumanal isrAm d n eu hehamnrmwmnhanaccuumxs elassrded as enner mable ur xed bused un me analyst s pnur knuwledge urnuwme Bust m me accuunlbehaves p 32 Anivilyhase e A mswe ufwhateva39 muses me meurrenee ura mable EDSL Fur example due Mal Bust qurmy lm m a husp zl wru mumse as me number qurmys 39aken mermses T ererure me number qurrays 15 me aeuvny base that Explams m Mal EDSL qurray lm p 25 Adminislnvjw cum 7 All exeeuuve urgamzahunal and clanml Busts assunated wnn me gmeab managEmEnl uran urganzauun mLhBr man man manu39ae1unng ur seumg p 23 Cumndmsd rm cum 7 Investments m nhues equipment and E351 urgamzzuuml skudure that an be sxm mn y redueed even rur shun penuds urume wnhuul mabnng damemzl ebanges p 28 Cnmlmn can 7 A EDSL that is meurred tn suppun a number ur EDSL ub 315 but that camut be uaeed tn unem mdmdually Fur example we wage EDSL unne pxlul ura 747 abrhnens a eummun Bust ufall unbe passengers un me am WthnuthepxluL mere uld be nu mm and nu passengers But nu pan unne pllul s wage 15 mused by any une passenger taking me mm p 41 Cnnm39hmjnn zppmachr An meume statement funnel at urgamzes Busts by unerr behavmr Casts are sepamledmm vanableand xed mtegunes raunerbban bang separated mm prudud and penud Busts fur enenab repumng purpuses p 4n mm mm embed rem Sale suuuu 5 Hanan Cdnmnmdnuu sunu 5mm m euuu um Sewn dmmmmm ecu s a 531m Am mun Mm mwawe 4 uuu sum 7 suuu m Dunmg berm me g 2593 m a rmmslnuve 15m Anna ue 999nqu name 5 man w manmadurvw mum ueemmumemumuu bm LAiomivanibhcosli luchal usd malsnak mrscl beer nndnnbhuwmaad Indium atmava Auchu xn mum mum momem 7mm 0mmhrmnuhcmrmgcampnaiwmbeEw aud u vmmvdmmn mumrumemuquot expanseshavebeen deducted p 4n Cmmsinn cm 7 Duect labur em plus manufaemnng Warhead Bust p 24 cm hehavim rThewzym whth acustreads m changes m melevel ufacuvxty p 25 cm Classi cauunsr Purpose 0 Com clas 39 iczllon Cost Ciassi mlions Pvepzumg sx erna hnanma ondud costs mvemanemm sxalemems men mammals Drre mm Manuiammmg overhead p emchangasm waed cos cons ammtma My waed any has meme and xed element Fredm ng cost behavmr m Vename can pro ovuona m acwny vespuns ee Asswgmng cosisto cost omens mm can can be eas ytraced is dspanmsms alproducis ndwrecicost cannmbe sas yhaced Making dem smne Meyerma com um vs Mean anemmwes Sunk cost past cost no a emed by a demsmn Opponunuy 505 means bensm cm abject Anymng fur whth em data are demea Examples ufcust abjects are prududs Eustuma39s1ubs and pans ufthe urgamzatmn such as depanmems Dr dxmsmns P 4 cm nfgnm lssnldr A I 11 my g m u mmcmmlnc l39vudmw mmlmmhsc Ume mlxl 39 nneuum xm39exmm cm Structurer The relative pmp um un af xed vznable and mixed Busts m an urgamzatmn p 25 szmdentvariahler sznable Lhatrespundstu seme causal factur tutal custxsthe depmdent vanable as represented by the letter 1 m the equanun Ya AX p 2 Differential can VA mfferenee m custbetween twu anemauves Alsu seelncremenml cos p 41 Differm alrwennerThe differmcemrevenuebetwem twu anemaaves p 41 P 41 Alsu calledmuchlabar p 22 Busts ean be eanvenenuy traced a n p 22 Discrajnnary xed can 7 Thuse xed Busts that anse earn annual densmns by managementtu Spend an eenan xed Bust nams suen as advemsxng and research p 28 Engnaa ng appmaen VA detailed analysis uf cusL behzvmrbased an an mdusmal ufthepncesufthusemputs p 32 inversely wmn Lhelevel afaeamy p 27 Himan mahan e Annemaa ufsepzranng amxed Bust mm as xed and vanable elemems by analyzmg the change m cusL betwem the nan and law aemncy levels p 35 y x I 7 Pikii mnblems ShpLonhelm Run X a may e rmxed costs mm me highrlow manna begm by d mqu WM me owes mm at actwny and we penod mm we mghe mun ea as me my pmm m we abave lemma am e penod mm Me mghest actw ny s se ected as me secand pmm sonseqaemy me ormu a becomes CINMmama me wexecm wlvmel W quotMe 1 a me Uwa L Hugh aclmly mm 7 Law nemuv mm or lt museume AILAUh39uM 7 mm mailml lncremmml cm rAnmmeasem custbetweentvm altanauves Alsu seen mmal cos p 41 ludzpendenlvar39nhlz r A mans that acts as a sausa rasma amvnyxsthz nudependent variable as xepuszn39zdbythz asusax mm suuausmy u 5X p 22 lndinclcuslr A casuhatcammbe sasayanusamsmmuyuassum aypeu edcast mesa p 41 lndincllzhurr Th2 labax casts ufaammas supemsms mauaaaas handlers amusmsa fanmywmkexs39hatcammbe cmvemen ykacedtapamculu pmch p 22 mum mmr39nk r Smau aums afmntenal suuh as gus auumaaas 39hatmaybe an mugal pan uf a mshsu pmducL but whnse casts annual be sasay a cmvemen y uassuus at p 22 lnvenlur39nhlz cusls r Synmym fax prath casts p 24 Leaslrslums ngnsn39nl medmd r A me39had af separaung a max ed cast mm as xed andvanahle usmsms by mng a asgsssm hne that rmmrmzes ms sum arms squared 211915 F 27 Limacuslhehzvinrr Castbehavmz as saauua be amsa whenever a suaaganams as a xensamble appxaxxmauanfm ms asaaumbsmsmsm and activity p 22 ufacuxmgcasls amp xectmntenals an Manu tluring uverllzad VA man u uaasa labax Manufacamng avexheadmcludesxtzms suuh as xndnrectmatuxals m xect labm m mmemnce andxepms smpaauanam suaaapmsm p 22 Mixed 115er casnhntcmtams bmhvanable andfxxedcastelemmts p m y h In mumwmum 1 Tm mm mm UM Thuwm thJuM ma mumnuamluummum The mamw pcv mm my mm m masumau m hnv Tha um u m m Oppununily cusl r The paunhal bsmm mans gven um when am ammauvs as ssasmu aver mum1 p 42 Perind mslsr Caststhat are taken duenjyta ms mam statement as Expenses mm psmsuamwmshmsy are msumu a accrued p 24 Primemseruectmaunals castplus xectlabm cast p 24 Product costs All costs that are involved in acquiring or making a product In the case of manufactured goods these costs consist of direct materials direct labor an EXHIBIY 24 Summary or CostTems MamaAluer cut Alo IM menu tor mme quotmumu WingIn Dine quotmural mmmm Mnnulclullng amma Manuals mmquot um mint m an in anyway N1 mnnn mnnmamunna a mnvanlnn y traced in m mummyth to a a 2 IBM mum such mm u pm m such ugass mb mm a table 39 moneys in a pm mm mm as mduam materials imm39 Bmmsttmas mad mm mm ram mm mmmgm aeprgqmmn m mamy nunamqs and immst pm cm canme a Nmmm nmrhi own Am allA rum Cull 5Han um mumm cam mm can mum cum Measunsmssmymsawm mg ms at cmamnr mm m as m m Mmemsm mths QWPDUV quotNaked mam amth in a x thewammnvlihd nsg ls 39cnmvensatln ysm tweth mush must a mnuupmnntmummwsw minimum and Mans1 as n sq l m walehausu verhead Also see Inventoriable costs p 23 Raw materials Any materials that go into the nal product p 126 Relevant range The range of activity Within which assumptions about variable and xed cost behavior are valid p 28 Selling cosm All costs that are incurred to secure customer orders and get the nished duct or service into the hands of the customer A company also incurs costs for heat and light property taxes insurance depreciation and so forth associated With its selling and a 39 39st ative functions but these costs are not included as part of manufacth overhead p 23 Sunk cost A cost that has already been incurred and that cannot be changed by any decision made noW or in the future p 43 Variable cusp A Bust that vanes m mm m uent pmpumumu changes m the level uf aan A vmable mg is cunstzntperumt p 25 Km Y i 1 Run 7 To ana yze mwxed cams mm the highrlaw me md begm by denmymg the penod mu the man mm or amwny and me penod mm m mgnem enod wwth my men acmy s sexema as m Nude and Me penod mm m mghest amva 5 Down Ccr equen y he omma becomes Variable ms Slope of the line r cw at mu m mmlv mm 7 m cuvny law Cman m ml Kvnume Um 77 L nmgs m mmly Chapter 3 B39mkrzvenpnintr Thelsvei ufsaies atwhchpm ns zem p 73 Break39Even In um Sales Ina singie pmduclmmaiizm recaii Mai me iommia or the um saieS la attain a speci c iargei pram is Um kilicgtnv1ilulnhe Lime pm To ccmpmeme mm saies a tweak even aii w iargei prom m lens in me e have in do is m sei the above equation as oiiuws Um mini iv break evtn to Fwd 3pm inuM Fixed mpmem i cwuxm my 7 L n i ii 11 mm Erenkvacn in Saiu Baum Wecanimi ebwak aiwm eenpmmnum i m neemaic enod n H aw hmmuitmi y i m gtltiimgymrn mnzt mmnmv so me gmquot pm in we doiia39 using Ihs app39cah Amid ampuimaasmcpmhm x5250 pampzakcrmsm nm at sales an m scive Va we nreaxeeveu paw n sai s em a Accushn mm using me hagic pm emum 521m mums mm 1 me mnvqn mmorwc Lan uszmn mum Varmc a39gni 3mm Again iarmevn wewiii usaiiVeiavaia nmexpm Fm xi rum M mm m mm mm 7M m Duiimmie n u innlgi mum Uni m nhlmkmur 01 m Cumihuu39m margin m n CM m n VA mun cumputed by Building cunmbuilun margn by dullarsaies p 78 The contribution margin as a percentage or saies is reierred H a i contribution margin min CM ratio This valin l5 computed as luiiaws ClIiIiHNiilUl nlmviu CM mllo t Sli CM mm x Umngc in mm Chnngr m cnnmhuhun mmgm Prom CM ram x Sa es 7 Frxea expensesi m VJwbk Arum um m mua u a mu uauam39 Mum m cm mun w mm W suamas um Lummmm mmquot H 7m cm Hun n My Khmn Vrlt M mm mm 7 7mmer mm Cunrvulumzrpm l CW guy A graph xepxesemanan afthz mummps bum m mm om mm m and mm an m an mm and 5 sales W 5 Inmeanthz a An even smp er harm 0 mg cw graph wmch we as a prom graph 5 presenled m Exhlhu H Tha graph rs based on me VcHawmg equahnn Prom UmlCM x Q7 and expch Cunm hun39nn mu sum cw Relalianships in Equatian Form rns aanmbuhcn tannat mama statement can be expressed m equanon term as VoHaws mm tsm a memc axpanmt 7 mm cxpcmcs nsn a company nas anty a single pvoduct as at Aczmsnc Concepts we can Nnher vehne tne equahon as ems Salts Sctttns pm pct mm x Qumuly mm P gt mama txpcnscs pct mm x annhly mid V gtlt 42 mm a P gtlt Q a Vx gt a thcdu quot n S ortsn useM w stpysss tna stmpts prom camnbu39mn margm Um cm as VoHow equancn m tsnns or tns mm Unith a amng pncc pct um i Vnmntc Expenses pm mm a P a v Promr m x as vx Qt a thcttexncnscs Prof mm Umt CM x Q 7 thed expense Days ufupen ng Wang A measlxe at a gvm level uf sales afhnw a percmlag Chang m saleswx a sctpm ts Th2 degquot uf apexahnglevengl ts cmnpuudby anangcmmbuammugnbymt up mg 2 It mu w mug taut m s Ntwpt tnm mwmt Incremth analysis An mych appmshthatracms my mums casts and xmmsthatchangsasatssntafaasaaanp 2n Margn nf sany 7 The excess ufbudgeted Dr actual duller sales ever he breakssvm dullzrsales p 85 Ma 1 mhm mum u we ml mr stva sum 7 meerw ems The margm or samy can a sa be expressed m pememage mm by dmdmg me mavgm m samy m doHars by 315 duHar sa es n v mm mm mm M M MW quot W Wm werm mm mm M m m muss Tm Opnu39nglevnge VA measure ufhuw sensmve net uperanng meme 5 m a gven percentage ehsnge m duller sales p 88 39 w cumputed by expressing the sales uf each mam as apercentage mum sales p 91 target pm t p 83 The Equatinn Method We can use a basw prom equsncn w hm we sexes va ume reqmrEd w anam a target pram In the case m Acausne Me a pen hasan yene y umsnwe muse he comnbunan margm ra equanon Remembenng mm Me target pmrms mnlheunwccnmbuncn margmws warm e x expense 5 3500 we can sche as VoHaws Plum Lmuvm x Q7 mmweme Mum mm X g e wmm Nlm gtlt Q 7 mm w 000 Q 7 Mum w mm 7 mo n The Formula Methnn The lemma mama 5 a 5mm versmn on us on memed Nme mat m m nex to he as hne of m above somucn me sum m m urgm mam 01549999 and me xed expense of sasmm am by he um cunmbumn margm o1 mm In genera m a e can ccmpule the 55 s mum reamed m am a specmc target pram usmg me VaHawmg mmma m mnm FM quc Lan CM Um mi N mm m L mm In the case or Aocusuc Comm me Vannma y e ds me Mommy nswer o39rpm l 1 chnlnlvc ummumummammpmm L quotCM on aw l Target Pmm Analysis In Terms n1 Sales Dnllars mm m m sa es we may warn a know wha deny sa es ave needed m mam my mom mm w nan 994 m amww mg uvora mmhnk rm w wm sche Var m umt sa es m in rm mga prdm usxrg me equatmn Warm 10mm 3 memo amj men mump y m2 mm by me 53mm e In Me caseorAcousm cmmms ma vaandea es vmme L5 w med be com 5n 5 j putod 12 5mm x 250 per sphakcror M can a ic sche Varme veqwaj sales vcmmem auam metergu pm a Mama at Acouch Concepts us vw the beam 22mm stated m a n IhLaa39unbumn mnrgm mm mm CM mhu gt4 Sam 71am Ixrenscgt mm 35 00 140000 313000 7 040 w v7 w p 79 Chapter 4 Almup m wx lgr A cas ng medmd um malndzs Au mannl39acmnng cam ma mm v1ch Islam Mbmhmm and rm mannl39acmnng weme m can mam p m Alhuw39nnhuer A musm afacuvnysvch as v1ch lahaxrhmns ax machuwhnnrs um 15usedmasslgncastsmcasmbjec39s p 122 AvnIviu MoH mm WW I 7 Fwdrmmmcd muum I ma mmmmn u pamcum pm mummum My mum by m w Emmw mm W mum mm m 13 w owmm ml a hmion Hrh WWW V Am WWWn W mgng mm WWW 7 Wan 39 a 39 dunuy Hm pmhi w M W m maumf mm Ann mu mm mm Hamming mman mamam my wsmaa awed Hillufnntzxiak r A dacnmzmthmshnws m quanmyafeachiyp afdmctmamml xequed m makz A mam p m cm Mg m 1mm Mzdmd Unad nmed m 71 new M41750 4an gt 539s p21 m A39ld39 Hnrismuphm Mama casmruaaus 50m Inst nfg mds mld IndiIElMelhld Casi of goods imiilufadui39ed 7 Tom iimmifiicmiiug eosi climged in jobs cginuing um in proces iiwenmiy e Ending work in meESS inventory Casi nr goods sold Beginning nished goods iiwenwr Cast of gnods nrnnnrnenned e Ending nished goods inienrory Cnndriver e A War such asrnaehinehnureheds neeupied cumputa hmE nr sign humemammesnvahadengs p 124 Exmaw 1 cm rim and cineman in a wannremumcnnnm WWW 1 Wm mm WWW me mumn cm nfgmds xmmlfzuma l e The manu dunng mils assunaled Winn me guuds 1131 we nished dmngunepennd p 125 Finisha l gnnds rUmls ufprumdthalhavebeen cumpleledbulnuly suld m Eustuma39s p 125 Jnh mixing 7 A farm prepared furajub 39halrecurdsthemalmals 131m and manu cmnnguva39hadcusts chargedlu39haljub p 119 Juhruldzx widlgr A unsung sysmm used In 5mm Wm manydm exem pmdvcts Jabs memes AAA maMeaAAch puma p m Famry m 39AA heal waen and power Rem An AAnary equipmenl Iy mas lance Manufacxunn 39 ion Mimuanenus vamry Amman 00539s Taal manmacmring Amman inwnsd MOIL Mzuriah xequin39w39nn mm A aAcAmAm that spcx es A W AAA AAAAmyAr mum m be drawn mm m gAnmAm And that mums 1h 1AA u wdlbe cAAAgAA ram cAsAAmAAAmAAAAJs p m Mul plzplulmnnilwd Amman AAA A unsung symm wnh mum mxhzad cm FAA And A Mmm mmumm mam AA AAA AAAA cast pun nth than A mag predzmmmzd Warhead AA m a AAAquot cAmpAAy Each pmAmAA AAPAmAAm mAybA AAAAAAAAAAPAAAAAWAAAAAAAAAPAAA p 135 NAmAAn xy zmr A unsung sysmm m wth maxth casls AAA Appxua A A AAA by mulnplymg A predzmnnmzd mxhzad AAA bythz AmA AmAAm Am AuAcAAAAbAsA manmdbythzjab p 122 muAnna mm m amanmbywhlch maxth cm apphed m JAbs Ame 1h Amwm ArmAAAA cast acm ymcumd mm A Fund p 13m 0mm zyp uw39mp m pmcess ArcAAAgmg mAAArAcmmgmAAAAAAAsm 1AA cast shuts p 122 Planwile Wuhan at A 5mg predz enmmd mxhzad A that As used Lhmughmn A prm p 135 AAAAc a his camputzdbydwldmg 1h Ptde Amman at A AA usedtn charge mAn mnngexhzadcasl m Jabs mAns estabhshzdmad mnce rAAAAch pna esnm ed mm mannl39aahlnng averth cast 11m pnadbythz eshmmzd mm AmmIm uflheallumum tasereemepened p 122 men1 rum manumcuumg mm 3 m39 hrds mnmnmHuman1mm Em ma 7 u m mm muHm unm Mum mn h e The prsdetermmed ovemead ram rs com pmea Deloreme perrod begms usrhg a lauresiep process the hrst shep rs m esnmate lhe mtaJ amaum rrrahuraomhhg overhead cosh my humeramrr rcr me nemmg penod Y bX whever v The esnmamd maJ manuraemrrhg overhead cash a e The eshrhahed lela rrxed manufacmvmg ovemead cash a eswwated varrame manuracmhng overhead cosh per mm or me aHma an base x The esnmamd maJ amour er the aHocchn base Raw Interim eAny malmals that gm mm me nal prudud p 126 vajckzl r A dacumemthansusedlu mcurdtheamuunt erhmean empluyee wands un Vanum acnvmes p 1m Undeqwuei werhmd r Theamuum bywhmh W had custaduallymcuned Exceeds me amaum ufuv had Eustapphedlujubs dunngapmud p 1m Wnrk inpmeee sUmts Ufpmnhd that are my pamally cumplele and Wm require further vmrk befure meyaee mdy fur 213 n he Eustuma39 p 125


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Kyle Maynard Purdue

"When you're taking detailed notes and trying to help everyone else out in the class, it really helps you learn and understand the I made $280 on my first study guide!"

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.