ACC 444 exam 2 Flashcards
financial accounting
the reporting of the financial position and performance of an organization
Benefits of financial accounting
How are we doing- financial literacy
Improve collections- identify people who do consulting
Improve purchasing
One voice- people working in different countries of an international company
Stay out of jail. Section 404- testing for internal controls. CEO and CFO sign off on them.
Chart of accounts
classification of every asset, liability, equity, revenue, and expense used by the organization
General ledger
The single integrating element that summarizes transactional data
5 steps in Accounting cycle
Source document Record transactions Post to GL account Prepare a Trial Balance Prepare financial statements
parallel accounting
keeping several GLs simultaneously with different principles or regulations
Accounts receivable and payable are known as _____ in the GL because they _______
control accounts,
summarizes the details
Management accounting
Supports the information needs of internal decision makers, communicates for the purpose of pursuing company’s goals
bill of material
master data that lists all the raw materials necessary to make a finished product
Routing
list of operations required to make a product and their costs
cost object
anything for which a discrete cost measurement is desired
cost allocation
dividing a total cost into parts and assigning the parts to relevant objects
cost centers/ cost pools
Departments in a company that are accountable for incurring or influencing costs
Investment center
Management oversees R&D, production, marketing, customer service, and efficient use of assets
Fixed asset life cycle
Planning and Approval Procurement Deployment- master data entered Use- provides value for organization Maintenance Upgrade or Overhaul Disposal
Planned trip to payment process
Helps employees submit request for business travel, book, and create expense reports
CES Framework dimensions
Search- all products and some services
Experience- some services and person performing service matters
Credence- remaining service. Afterward, not able to judge, provider has specialized knowledge
contract to contract to cash process
quote to cash
order to cash
Name for sales processes, begins first interaction with customer, ends with collecting cash from customer
Steps in sales process
Lead generation Qualify lead Opportunity Quotation Sales Order Order Fulfillment Invoice Cash collection
What qualifies a lead?
Applicability- do they need our product?
Authority- Do they decide whether to buy?
Affordability
quotation
legally binding offer to deliver certain products or services at a specified time and price
Available to promise
Confirms a delivery can be met on a required delivery date
Top 3 marketing goals
Generating demand
Creating brand awareness
Building long term relationships with customers
Sales pipeline
Projects estimated revenue that will be generated in upcoming months
Opportunity amount x Confidence rate
3 main goals of customer support
Resolve incidents efficiently
Identify common support problems
Identify top customers and prioritize service needs
Field service
used to manage installations, service, or repairs of systems previously sold to customers
Benefits of a Knowledge management system
Sharing best practices Downsizing and outsourcing Knowledge commands a premium price in the market Globalization and competition Innovation
Chief knowledge officer
Oversees the content, strategy and structure of KM system
Obstacles of a Knowledge management system
Starting to big Relying on technological shortcuts Not modeling the behavior Thinking KM will work quickly Ignoring rewarding employees System must be maintained
Supply Chain 4 activities
Plan
Source
Make
Deliver
6 steps of purchase to pay
Purchase requisition Sourcing Purchase Order Goods or Services Receipt Supplier, invoice, 3-way match Payment
three way match
check to compare purchase order, goods receipt, and supplier invoice before accepting goods
tolerance limits
allow for slight differences between quantities received and quantities ordered
spend analysis
when companies evaluate their expenditures to identify unneeded spending and contracts
5 types of supplier relationship management
sourcing supplier performance management spend analysis contract management catalog management
Bin, coordinate
a unique address of every storage location of the warehouse
two-step picking
warehouse employees pick required materials for many orders, minimizes number of trips
wave picking
customer deliveries are made in waves of common route, carrier, or departure time
serpentine picking
staff moves through warehouse in a snake motion
cycle counting
when small subsets of inventory in a particular location is counted on a specified day
dynamic cycle counting
allows normal warehouse operations to continue during bin counts without requirements for bins to be blocked for placement or removal
material requirements planning
1970’s, assists production managers in scheduling and placing orders for dependent demand items
dependent demand
raw materials, component parts needed for final product
inspection lot
sample of material chosen according to a sample plan
plant maintenance
helps an organization increase the availability of plant assets
transceiver
reads radio frequency and transfers the data to ERP system
Active tags
RFID tags that have an internal battery that transmits data to be read from hundreds of feet away
Passive tags
RFID tags with no battery and small range
Electronic data interchange
computer to computer to computer exchange of business event data between business partners
Value added network
a third party that acts like a post office for many companies conducting EDI
human capital
the set of skills that employees acquire that create economic value for the organization
Employee Life Cycle (Recruit to retire process)
Recruitment Onboarding Compensation/Benefits Coaching/Training Performance management Succession planning Transition
Data owners
employees who approve access to the data, responsible for its accuracy
personnel administration, (BFOQ)
Captures employee basic info, hiring, salary increases, promotions, leaves, terminations
Bonafide Occupational Qualification- qualifications necessary to do the job
benefits administration
retirement plans, vacation time, maternity leave, employee details that determine eligibility for benefits
Time and Attendance Management
Managers use to schedule employee time, schedule employees based on skills, seniority, availability
Compensation management
Administering wage policies to attract and motivate employees
Steps in Recruitment management life cycle
Candidate attraction- posting jobs
Candidate tracking- organising applications
Candidate selection- matching employee skills with job description
Onboarding
bench strength
capabilities and readiness of employees who can fill vacant positions
succession planning
Identifying key employees that are ready to be promoted to leadership roles
Learning and Event management
Maintains employee education throughout the organization and training profiles, and what courses employees should take
Top five HR Functions to Outsource
Payroll Legal compliance Benefits administration Background checks Strategic workforce analysis
business analytics
The comprehensive use of data and quantitative analysis for decision making
Structured and unstructured data
Business intelligence
Rear view mirror approach to gathering information
Structured data, looking backward to look forward
Query by example
User can fill in blanks or select items to generate a query
Dashboard
Displays info in a condensed and efficient manner
Requires tacit knowledge, managerial level
Do not contain reports, summarize data
Scorecard
Formal framework for corporate performance
Executive level
Focused on customer satisfaction and timeliness
Data mining
Analysis of large pools of data to find hidden correlations and trends
Data warehouse
A multi-dimensional database that combines data to summarized form
The central point of data integration
Subject oriented, stable, time variant
Data mart
Repository of data to serve specific users
Meets specific needs of a particular group
Corporate/enterprise performance management
Area of BA that enables organizations to collect and analyze data from multiple sources
Bridges gap between long term strategies and day to day operations
Lagging indicator
Provide knowledge of past activity and an incomplete picture of performance
Leading indicator
Balance financial KPI
Strategy map
Shows the cause and effect relationship among perspectives
Main tool used for visualization and communication in the balanced scorecard
Qualify a lead
Service- show clients our past success by referring them to past clients
Benefits of Supply Chain Management
- Increase visibility- we can see through the supply chain
- Reduce inventory
- Customer trends- we can understand them better
Supplier Relationship Management
Shadow of a future relationship
Supplier performance management
Spend analysis
Contract management analysis
Manufacturing measures
Economic order quantity- Purchase cost + Holding cost + Stock out costs
MRP= Projected sales. Thinking about who the customers are
JIT (Just in Time) = Actual sales
Outsourcing
Big data
Used to describe the exponential growth and availability of data, everything we do leaves a digital trace
Four ways to identify Big Data
Veracity- truth/correct, probability that something is true
Variety- sources, number of sources linked together
Volume- How much data, problem is it takes a lot of time and money to go through
Velocity- how quickly the data is coming at you, speed of data. If data comes too fast we can’t process it
