Overview Flashcards
(20 cards)
For management accounting, the source of information is from internal data. True or False?
False
FinAcc - internal data
ManAcc - internal data + external data
For management accounting, the type of information is financial. True or False?
False
FinAcc - financial
ManAcc - financial + non financial
Management Accounting or Financial Accounting
- details are aggregated and simplified
Financial Accounting
- Management Accounting → detailed and extensive
Management Accounting or Financial Accounting
- created as needed (be it daily or monthly)
Management Accounting
Management Accounting or Financial Accounting
- Focus is on business segments (not company as a whole)
Management Accounting
Management Accounting or Financial Accounting
- mandatory for publicly listed companies
Financial Accounting
Planning
- setting goals and objectives
Organizing
- directing and motivating
- staffing
Controlling
- correction actions to do
- monitoring
Yes
Decision-making → inherent to all management functions
Controller or Treasurer
- reporting and interpreting
Controller
Controller or Treasurer
- provision of capital
Treasurer
Controller or Treasurer
- investment and insurance
Treasurer
Controller or Treasurer
- economic appraisal
Controller
Controller or Treasurer
- banking and credit
Treasurer
Line vs Staff
Controller - line or staff?
Line
- Directly involved with the organization’s mission
- has authority to give orders
- downward authority
Staff
- provides support for the organization’s mission
- has authority to advise (not order)
- sideways or upward
primarily staff, but line in accounting department
Financial Management
- Goal → maximize shareholder’s wealth (market value of stocks)
- no single person is tasked for all responsibilities of financial manager (dispersed)
Basic Principles
- risk and returns
- time value of money
- tax consideration
- cash is king (not profit)
- ethical behavior is always relevant
Yes
Unique Feature of JIT
Inventories are eliminated
Just in Time vs Traditional
- flexible or multi-skilled workforce
Just in Time
Just in Time vs Traditional
- some defects are acceptable
Traditional
Just in Time vs Traditional
- materials are purchased in large quantity
Traditional
Just in Time vs Traditional
- integrated production design and process
Just in Time
Just in Time vs Traditional
- one product & small production batch
Just in Time
