Accgt 131 Ch 1 Flashcards
This is called the language of business
Accounting
This type of accounting is used to gather the financial and nonfinancial information needed by internal users.
Management accounting
Give examples of Upstream costs and Downstream costs
Upstream costs
(research, development, product design, and supply chain)
Downstream costs
(marketing, distribution, and customer service)
Cost accounting addresses the informational demands of
both financial and management accounting by providing product cost information to?
External parties (stockholders, creditors, and various regulatory bodies) for investment credit decisions and for reporting purposes
Internal managers for planning, controlling, decision making, and evaluating performance.
This is a voluntary membership organization of accountants, finance specialists, academics, and others.
The Institute of Management Accountants (IMA)
The IMA issues directives
on the practice of management and cost accounting called Statements on Management
Accounting (SMAs)
This is any critical function or activity in which an organization seeks a higher proficiency than its competitors, making that function or activity the root of competitiveness and competitive advantage.
Core Competency
This refers to a company’s ability to maintain its competitive
edge by undercutting competitor prices.
Cost leadership
This refers to a company’s ability to off er superior quality products or more unique services than competitors; such products and services are, however, generally sold at premium prices.
Product Differentiation
This is a set of value-adding functions or processes that convert inputs into products and services for company customers.
Value Chain
___________ work directly toward attaining organizational goals. Persons in these positions will be held responsible for achieving targeted balanced scorecard measures or budgeted operating income for their divisions or geographic regions.
__________ give assistance and advice to the first people
Line and Staff Personnel
What are lag and lead indicators
Lag Indicators are outcomes that resulted from past actions, such as installing a new production process or implementing a new software system.
Lead indicators refl ect future outcomes and thereby help assess strategic
progress and guide decision making before lag indicators are known.
Intellectual capital encompasses?
All of an organization’s intangible assets: knowledge,
skills, and information.
This is a framework that translates an organization’s strategy into clear and objective performance measures (both leading and lagging) that focus on customers, internal business processes, employees, and shareholders.
Balanced scorecard (BSC)
