ACCT2012 Flashcards
Cost Accounting
D: method for measuring the cost of a project process or thing
- for both financial and managerial accounting
- includes both financial and non-financial info
Key influences on management accounting system structure
- Organisationalstructure.
- Availability of information technology.
- Organisational strategies.
- Organisation view of management accounting.
- Types of decisions confronting managers.
- External influences.
Relevant Information
- concerns the future
* varies with the action taken
Irrelevant Information
does not vary with action taken, therefore not useful to decision making
2 aspects of high quality decision making
- quality of management accounting info and reports used (e.g. relevant, fewer uncertainties, viable assumptions)
- quality of decision making processes used
Higher quality info is more….
certain, complete, relevant, timely, valuable
CCRTV
- opportunity costs of obtaining info
- cost-benefit analysis
Higher quality reports are more….
relevant, understandable, available
RUA
Higher quality decision making process is more….
thorough, unbiased, focused, strategic, creative, visionary
TUFSCV
Value Chain
- Key activities which a company adds value to product.
* At organisational level, value chain = key activities + support activities
Value-Added Activity
one that is necessary and customer would normally be prepared to pay for.
Non-Value-Added Activity
one that is unnecessary and customer would not normally be prepared to pay for
Cost Object
something for which we measure costs (e.g. product, service, production activity, customer, product).
Cost Driver
input / activity that causes changes in the total cost for a cost object.
Structured: relate to underlying economic structure of organisation
Executional: relate to ability of organisation to do what is does successfully
Supply Chain
flow of resources from the initial suppliers through the delivery of goods and services to customers and clients
