ACC210 Ch1 Set 2 REVERSED

Question 1

the direction that the organisation intends to take over the long term, to meet its mission and achieve its objectives

Answer 1

Strategies

Question 2

decisions about the types of businesses in which to operate, which businesses to acquire and divest, and how best to structure and finance the organisation

Answer 2

Corporate strategy

Question 3

the way a business competes within its chosen market

Answer 3

Business strategy (competitive strategy)

Question 4

putting plans into place to implement and support a chosen business strategy

Answer 4

Strategy implementation

Question 5

the advantage that a business may have over another, which are difficult to imitate

Answer 5

Competitive advantage

Question 6

a business strategy where a firm is a low-cost producer that allows the business to sell its goods or services at a lower price than competitors

Answer 6

Cost leadership

Question 7

a business strategy whereby a firm derives competitive advantage from offering goods or services that have characteristics different from those offered by competitors

Answer 7

Product differentiation

Question 8

long-term planning to achieve the organisation’s objectives, usually undertaken by senior managers

Answer 8

Strategic planning

Question 9

a broad concept that is concerned with formulating the direction for future operations

Answer 9

Planning

Question 10

a detailed plan summarising the financial consequences of an organisation’s operating activities for a specified future time period

Answer 10

Budget

Question 11

putting mechanisms in place to ensure that operations proceed according to plan and that objectives are achieved

Answer 11

Control

Question 12

the systems and procedures that provide regular information to assist in control

Answer 12

Control systems

Question 13

assumes that the design of an organisation’s management accounting system may be influenced by (is contingent on) a range of factors including the external environment, technology, organisational structure, organisational size, strategy, and organisational and national culture

Answer 13

Contingency theory

Question 14

states that the design of an organisation’s management accounting system may be influenced by the need for legitimacy and the tendency for firms to imitate the ‘good practice’ from other organisations

Answer 14

Institutional theory

Question 15

managers who support the activities of an organisation as a whole, and are only indirectly involved in the operations of a business

Answer 15

Staff management

Question 16

managers who are directly involved in the core activities of the business

Answer 16

Line management

Question 17

Prior to 1950:- Cost; cost determination and financial control 1965:- Profitability; provision of information for planning and control 1985:- Waste reduction; reduction of waste through strategic cost management 1995:- Resource management and value creation; creation of value through strategic resource management – the effective and efficient use of all resources

Answer 17

Date - The focus on management accounting

Question 18

The Code of ethics with which CPAs and CAs are required to comply, issued by Accounting Professional and Ethical Standards Board (APESBA)

Answer 18

Code of Ethics for Professional Accountants

Question 19

• Integrity - Objectivity - Independence - Professional competence and due care - Confidentiality - Professional behaviour

Answer 19

Fundamental principles of the Code of Ethics for Professional Accountants?