Management Accounting Environment Flashcards
DOT (16 cards)
A profession that involves partnering in management decision making, devising and planning performance management systems, and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization’s strategy.
Management Accounting
They organize the different resources of an entity to achieve its objective.
Managers
Involves establishing a basic strategy, selecting a course of action, and specifying how the action will be implemented.
Planning
End product of the planning process that shows the different goals and planned activities of the entity that are expressed in financial terms.
Budget
Carrying out the activities of the business as planned.
Executing
Evaluating the results of operation and involves ensuring that the plan is actually carried out and is appropriately modified as circumstances change.
Controlling
Selecting among differemt alternatives. In performing this function, managers need information, and that information is provided by managerial accounting.
Decision Making
A systematic processes of control used to influence members in organizations to achieve the firm’s goals.
Management Accounting System
Decision making is delegated to the lowest possible managerial position.
Decentralized
They assist and support those in the line position.
Staff Position
A chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market.
Value Chain
Concerned with receiving the materials from suppliers, storing these externally sourced materials, and handling them within the firm.
Inbound Logistics
Related to the production of products and services. This area can be split into more departments in certain companies.
Operations
Concerned with distributing the final product and/or service to the customers.
Outbound Logistics
This functional area essentially analyses the needs and wants of customers and is responsible for creating awareness among the company about the firm’s products and services. Companies make use of marketing communication tools like advertising, sales promotions etc. to attract customers to their product.
Marketing and Sales
A need to provide services like pre-installation or after-sales service before or after the sale of the product or service.
Service
