Chapter 1 Flashcards
Cost Accounting: Information for Decision Making (20 cards)
Set of activities that transforms raw resources into the goods and services that end users
purchase and consume.
value chain
Those activities that customers perceive as adding utility to the goods or services they
purchase.
value-added activities
Set of firms and individuals that sells goods and services to the firm.
supply chain
Set of firms and individuals that buys and distributes goods and services from the firm.
distribution chain
Field of accounting that reports financial position and income according to accounting rules.
financial accounting
Field of accounting that measures, records, and reports information about costs.
cost accounting
Rules, standards, and conventions that guide the preparation of financial accounting
statements for firms registered in the United States.
generally accepted accounting principles (GAAP)
Rules, standards, and conventions that guide the preparation of the financial accounting
statements in many other countries.
international financial reporting standards (IFRS)
Activities that do not add value to the good or service.
nonvalue-added activities
Process of comparing benefits (often measured in savings or increased profits) with costs
associated with a proposed change within an organization.
cost-benefit analysis
Factors that cause, or “drive,” costs
cost drivers
With two or more alternatives, costs that differ among or between alternatives.
differential costs
Revenues that change in response to a particular course of action
differential revenues
Specific unit of an organization assigned to a manager who is held accountable for its operations and resources.
responsibility center
Financial plan of the revenues and resources needed to carry out activities and meet financial
goals.
budget
Information technology that links the various systems of the enterprise into a single comprehensive information system.
enterprise resource planning (ERP)
A systematic process used to analyze a business issue or decision.
critical thinking
The volume and speed with which information is generated and made available.
big data
Systematic evaluation of information to address a decision problem.
data analytics
How the results of the data analysis are summarized and presented.
data visualization
