Ch 1

Question 0

Management accounting

Answer 0

Measures, analyzes and reports financial and non financial
Info that helps managers make decisions to meet
Organizations goals

Question 1

Financial accounting

Answer 1

Focuses on reporting to external parties (investors, gov,
Creditors, suppliers)

It measures and records business transactions,
Provides financial statements that follow GAAP

Question 2

Cost accounting

Answer 2

Measures, analyzes and reports financial and nonfinancial

Info relating to costs acquiring or using resources of organization

Question 3

Cost management

Answer 3

Describes approaches and activities of managers
To use resources to increase value to customers
And to achieve organizational goals

Question 4

Strategy

Answer 4

How an organization will compete and manager will

Pursue objectives

Question 5

Cost leadership strategy

Answer 5

Quality products at a low cost

Vanguard, Southwest

Question 6

Product differentiation strategy

Answer 6

Generate profits or growth through ability to offer
Unique products or services at higher prices

Ex. Apple, Johnson and Johnson

Question 7

Strategic cost management

Answer 7

Describes cost management that specifically focuses

On strategic issues

Question 8

Value chain

Answer 8

Sequence of business functions where customer

usefulness Is added to products

Question 9

6 primary business functions?

Answer 9

Research and development
Design of products and processes
Production
Marketing 
Distribution
Customer service

Question 10

Research and development

Answer 10

Generating and experimenting with ideas related

To new products, services and processes

Question 11

Design of products and processes

Answer 11

Detailed planning, engineering and testing of

Products and processes

Question 12

Production

Answer 12

Procuring, transporting and storing, coordinating
And assembling resources to produce a product
Or deliver a service

Question 13

Marketing (including sales)

Answer 13

Promoting and selling products or services to customers

Question 14

Distribution

Answer 14

Processing orders and shipping products or services

To customers

Question 15

Customer service

Answer 15

Providing after sales service to customers

Question 16

What’s included in the administrative function of the value chain 4 things?

Answer 16

Accounting, finance, human resources management,

Information technology

Question 17

Customer relationship management (CRM)

Answer 17

Strategy that integrates people and technology in all business
Functions to deepen relationships with customers, partners,
And distributors

Question 18

Supply chain

Answer 18

Parts of value chain associated with producing or
Delivering a product or service

Production and distribution

Can span across many companies

Question 19

Cost and efficiency (key success factor)

Answer 19

Managers come up with target costs based on operating
Costs and market prices of product

To be more competitive companies try to lower costs

Question 20

Quality

Answer 20

Customers expect high levels of quality

TQM- Total Quality Management aims to improve
Operations throughout the value chain to exceed
Customer expectations

Question 21

Key success factors 4?

Answer 21

Cost+efficiency, quality, time, innovation

Question 22

5 step decision making process?

Answer 22

Planning (steps 1-4)
1 identify the problem and uncertainties

2 obtain info

3 make predictions about the future

4 make decisions by choosing Among alternatives

5 implement decision, evaluate performance and learn

Question 23

Planning, 4?

Answer 23

Comprises selecting organizational goals and strategies,
Predicting results under various alternatives, deciding
How to attain desired goals, communicating goals throughout
Organization

Question 24

Budget

Answer 24

Quantitative expression of proposed plan of action By management and an aid to coordinating what Needs to be done to execute plan

Question 25

Control

Answer 25

Taking actions that implement planning decisions, Decide how to evaluate performance, provide feedback And learning to help future decision making

Question 26

Learning

Answer 26

Examining past performance and systematically Exploring alternative ways to make better informed Decisions in the future

Question 27

Cost benefit approach

Answer 27

Resources should be spent if expected benefits to | The company exceed expected costs

Question 28

Line management

Answer 28

Production, marketing, distribution management Directly responsible for attaining goals of organization

Question 29

Staff management

Answer 29

Management accountants, information technology and Human resources management Provides advice and support to line management

Question 30

CFO AKA Finance director

Answer 30

Executive responsible for overseeing the financial | operations of organization

Question 31

6 Responsibilities of CFO?

Answer 31

``` Controllership Treasury Risk Management Taxation Investor Relations Internal Audit ```

Question 32

Controllership

Answer 32

Includes providing financial info to managers, shareholders | And overseeing overall operations of accounting system

Question 33

Treasury

Answer 33

Includes banking and short and Longterm financing, | Investing and cash management

Question 34

Risk management

Answer 34

Includes managing financial risk of interest rate and | exchange rate changes and derivative management

Question 35

Taxation (CFO responsibility)

Answer 35

Includes income taxes, sales taxes and international tax planning

Question 36

Investor relations

Answer 36

Includes communicating with, responding to and | interacting with shareholders

Question 37

Internal audit

Answer 37

Reviewing and analyzing financial and other records | To attest to integrity of organizations reporting

Question 38

Controller AKA Chief accounting officer, chief management accounting executive

Answer 38

Financial executive primarily responsible for management | Accounting and financial accounting

Question 39

What are the 4 ethical responsibilities of management accountants?

Answer 39

Competency, confidentiality, integrity, credibility