Accounting Unit 2
🇬🇧
In English
In English
Practice Known Questions
Stay up to date with your due questions
Complete 5 questions to enable practice
Exams
Exam: Test your skills
Test your skills in exam mode
Learn New Questions
Manual Mode [BETA]
Select your own question and answer types
Specific modes
Learn with flashcards
Complete the sentence
Listening & SpellingSpelling: Type what you hear
multiple choiceMultiple choice mode
SpeakingAnswer with voice
Speaking & ListeningPractice pronunciation
TypingTyping only mode
Accounting Unit 2 - Leaderboard
Accounting Unit 2 - Details
Levels:
Questions:
68 questions
| 🇬🇧 | 🇬🇧 |
| Focuses on the accounting tools managers can use internally to run a business | Management Accounting |
| Focuses on preparing financial records and reports for external stakeholders such as stockholder, suppliers, banks and government agencies | Financial Accounting |
| Focuses on providing information for the day-to-day control of operations such as inefficiencies or wastage of materials | Cost Accounting |
| Used internally by managers at all levels and employees | Management Accounting |
| Used externally by investors, creditors and government agencies | Financial Accounting |
| Helps managers and employees to plan and control business operations | Management Accounting |
| Helps investors, creditors and others make investments, give credit and make other decisions | Financial Accounting |
| Information prepared contains both monetary and non-monetary transactions | Management Accounting |
| Information modified to fit the 'Generally Accepted Accounting Principles' (GAAP). Contains mostly monetary transactions and is audited by an independent auditor. | Financial Accounting |
| Uses historical and future(budget) information | Management accounting |
| Uses historical information only | Financial Accounting |
| Time span of financial reports is flexible (may be hourly daily or yearly) | Management accounting |
| Reports are detailed(e.g products, departments or territories) | Management Accounting |
| Reports are summarized | Financial Accounting |
| Helps managers forsee the cost price and selling price of a product or service, which helps them formulates business policies | Cost Accounting |
| Uses information about the business | Management Accounting and Financial Accounting |
| Costs associated with any product or service | Material, Labour and Overheads |
| Another name for expired costs | Expenses |
| The process of arranging cost items into groups according to their degree of similarity | Cost Classification |
| Also called inventoriable costs and include the cost of direct materials, direct labour and overheads | Product Cost |
| Any identifiable part of a product | Direct Material |
| Refers to the time spent by individuals who work specifically on manufacturing a product or performing a service | Direct Labour |
| Examples of cost according to type | Material, Labour |
| Examples of cost according to function | Manufacturing, Administration |
| Sum of Direct Material and Direct Labour | Prime Cost |
| Sum of Direct Labour and Overhead | Conversion Cost |
| All Manufacturing Costs other tha Direct Material aand Overhead | Manufacturing Overhead |
| Also called non-manufacturing costs | Period costs |
| All costs necessary to secure orders and get the finished product or service into the hands of the customer | Marketing or Selling Costs |
| All costs of general administration of the company as a whole | Administrative Costs |
| An expected future Cost | Budgeted Cost |
| A cost that is not variable or fixed | Mixed Cost |
| What is represented in the graph above? | Step-Fixed Cost |
| What is represented in the graph above? | Variable Cost |
| What is represented in the graph above? | Step-Variable Cost |
| What is represented in the graph above? | Fixed Cost |
| What is represented in the graph above? | Mixed Cost |
| Also called relevant cost | Avoidable Cost |
| Also called irrelevant cost | Unavoidable Cost |
| Objective of an Accounting Information System | To provide information to users |
| What does the image above represent? | A model of an Accounting Information system |
| The two major subsystems of the Accounting Information system | The financial accounting system and the cost management system |
| Primarily concerned with producing reports for internal information users, using inputs and processes needed to satisfy management objectives. | Cost Management System |
| Used for: 1. Costing of products, services, and other objects of interest to management; 2. Planning and control; and 3. Decision making. | Cost Management System |
| Two major subsystems of the Cost and Management System | The cost accounting system and the operational control system |
| Subsystem designed to provide accurate and timely feedback concerning the performance of managers and others relative to their planning and control of activities. | Operational Control System |
| Subsystem designed to assign costs to individual products and services and other cost objects as specified by management. | Cost Accounting System |
| What is outlined in the diagram above? | The Subsystems of an Accounting Information System |
| Globalisation; increased competitiveness Growth in the Service industry Advances in information and manufacturing technology. | Factors affecting cost management practices |
| Increased competition has made managers in this industry more conscious of the need to have accurate cost information for planning, controlling, continuous improvement, and decision making | The role of Cost Accounting in the service industry |
| Another name for cost management | Management Accounting |