1 Flashcards
is a set of interrelated parts that performs one or more processes to accomplish specific objectives.
SYSTEM
is one that consists of interrelated manual and computer parts and uses processes such as collecting, recording, summarizing, analyzing and managing data to provide information to users.
ACCOUNTING INFORMATION SYSTEM
it has objectives, interrelated processes and outputs.
- it is divided into subsystems, such as:
- Financial accounting system
- Cost management system
ACCOUNTING INFORMATION SYSTEM
Within the organization, cost accounting is presented as part of the management function.
ACCOUNTING INFORMATION SYSTEM
These systems are not independent of each other (they should be integrated and have linked databases - output of 1 system can be used as input of the other system.)
Financial, Management, and Cost Accounting
Provides the detailed cost information that management needs to control current operations and plan for the future.
COST ACCOUNTING INFORMATION SYSTEM
Decision-making (Pricing decisions, inventory valuation, contract bidding, choosing among alternatives, routine and strategic decisions)
COST ACCOUNTING INFORMATION SYSTEM
Planning and control (meeting competition, analyzing profitability, reduction of costs, improvements of quality)
COST ACCOUNTING INFORMATION SYSTEM
Meet external information needs
Financial
Investment decisions
Financial
Stewardship evaluation
Financial
Regulatory measures
Financial
Comply with GAAP
Financial
Meet internal information needs
Management
Meet internal information needs
Management
Whole organization
Financial
Historical
Financial
Quantitative
Financial
Monetary
Financial
Verifiable
Financial
External focus
Financial
GAAP
Financial
Formal recordkeeping
Financial
Internal focus
Managerial
Monetary and nonmonetary
Managerial
Quantitative/qualitative
Managerial
Current/projected
Managerial
Segments or divisions
Managerial
Timely/reasonable estimate
Managerial
Benefits exceed costs
Managerial
Formal and informal recordkeeping
Managerial
MANAGEMENT FUNCTIONS
Planning
Organizing
Controlling
Directing
WHICH ALL INCLUDE:
Making decisions
Giving orders
Establishing policies
Providing work and rewards
Hiring people to carry out policies
each manager’s responsibilities should be limited to the costs and revenues that are controllable by the manager, and performance is generally measured by comparing actual costs and revenues with the budget.
RESPONSIBILITY ACCOUNTING
Is the quantified, written expression of management’s plans.
Should be created through the participation of all levels of management.
Promotes coordination of personnel, clarification of policies, crystallization of plans.
BUDGET
A set of value-adding functions and processes that converts inputs into products or services
Value Chain
