Management Accounting Flashcards

(12 cards)

1
Q

Residual income(RI)

A

RI= Profit-(cost of capital x nice investment)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Economic value added

A

(Conventional divisional profit-accounting adjustments) - cost of capital charge on adjusted divisional assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Minimum transfer price

A

M t p+ marginal cost + opportunity cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Maximum transfer price

A

Market price -cost savings from internal transfer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Transfer price for division with spare capacity

A

Marginal cost = transfer price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Transfer price for no spare capacity

A

Market price = transfer proce

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Pros and cons of performance management(one on one talks with manager

A

Pros
Employees feel valued
Positive environment
Communication
Good culture
Cons
Slow change of culture
Enhances incompetence of incompetent managers
Less productive and efficient

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Definition of strategic management accounting

A

Management accounting with emphasis on external factors, non financial info and internally generated info

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

4 key strands of info in SMA

A

Product & market info
Competitor activities
Gaining competitive advantage
Matching MA with strategic position

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Format of divisional profit management

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

4 different divisional financial stats

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Qualities of non relevant costs/revenue

A

Sunk/Hisotric
Committed
Notional

How well did you know this?
1
Not at all
2
3
4
5
Perfectly