Ch 1 Flashcards
The Manager and Management Accounting
Management accounting need not be G A A P compliant.
T vs F
True
Management accounting is used for helping managers make decisions to fulfill organizational goals, through…
- Develop, communicate, and implement strategies
- Coordinate product design, production, and marketing decisions and evaluate a company’s performance
Financial accounting focuses on…
reporting financial information to external parties (investors, governmental agencies, banks, and suppliers) based on G A A P.
Cost Accounting measures, analyzes, and reports financial and nonfinancial information related to…
the costs of acquiring or using resources in an organization.
Strategy specifies how an organization
matches its capabilities with the opportunities in the marketplace
Strategic cost management describes…
Cost management focusing on strategic issues
The value chain is….
the sequence of business functions by which a product is made progressively more useful to customers
- R&D
- Design
- Production
- Marketing/sales
- Distribution
- Customer service
Customer relation Management (CRM) is …
integrates people and technology in all business functions to deepen relationships with customers, partners, and distributors.
initiatives the use of technology to coordinate all customer-facing activities and design and production activities necessary to get products to customers.
Production and Distribution together are known as ….
the Supply Chain.
The supply chain describes…
the flow of goods, services, and information from the initial sources of materials, services, and information to their delivery (regardless of whether the activities occur in one or multiple organizations)
The Five-Step Decision-Making Process
- Identify the problem/uncertainties.
- Obtain information.
- Make predictions about the future.
- Make decisions by choosing among alternatives.
- Implement the decision, evaluate performance, and learn.
Planning process:
- selecting an organization’s goals and strategies,
- predicting results under various alternative ways of achieving those goals,
- deciding how to attain the desired goals, 4. communicating the goals and how to achieve them to the entire organization.
The most important planning tool when implementing strategy is a budget
Control process:
- taking actions that implement the planning decisions,
- evaluating past performance, and
- providing feedback and learning to help future decision making.
Control implements the plan, evaluates performance and provides feedback
A budget is
the quantitative expression of a proposed plan.
Line management is directly responsible for
achieving the goals of the organisation (ex. production, marketing or distribution managers)
