Ch 1

Question 0

Managerial accounting

Answer 0

Managerial accounting provides info for managers inside

The company

Question 1

Financial Accounting

Answer 1

Concerned with reporting financial info to external parties

Stockholders, creditors, regulators

Question 2

Segment

Answer 2

Part or activity of organization which managers

Would like cost, revenue or profit data

Question 3

Business Segment examples 6?

Answer 3

Product lines
Customer groups (age, ethnicity, gender, purchase volume)
Geographic territories, 
divisions, 
plants,
 departments

Question 4

3 vital activities of managerial accounting?

Answer 4

Planning, controlling, decision making

Question 5

Planning

Answer 5

Involves establishing goals and specifying how

To achieve them

Question 6

Controlling

Answer 6

Gathering feedback to ensure that the plan is being

Properly executed or modified as circumstances change

Question 7

Decision making

Answer 7

Selecting course of action from competing alternatives

Question 8

Budget

Answer 8

Detailed plan for future that’s expressed in

formal quantitative terms

Question 9

Performance report

Answer 9

Compares budgeted data to actual data as effort to
Identify and learn from excellent performance and to
Identify and eliminate unsatisfactory performance

Can be used to evaluate and reward employees

Question 10

Strategy

Answer 10

Gameplay that enables company to attract customers

By distinguishing itself from competitors

Question 11

3 categories of customer value propositions?

Answer 11

Customer intimacy (personalized)
Operational excellence (cheaper and efficient)
Product leadership (innovative, cutting edge)

Question 12

Enterprise risk management

Answer 12

Process used by company to identify risks and
Develop responses to them that enable the company
To meet its goals

Question 13

Business process

Answer 13

Series of steps followed in order to carry out

Task in business

Question 14

Value chain

Answer 14

Consists of major business functions that add value

To company’s products and services

Question 15

Lean production

Answer 15

Management approach that organizes resources
Such as people and machines around flow of
Business processes

Only produces units for customer orders

Question 16

Constraint

Answer 16

Prevents you from getting more of what you want

Question 17

Theory of Constraints (TOC)

Answer 17

Based on insight that effectively managing the constraint

Is key to success

Question 18

Corporate social responsibility (CSR)

Answer 18

Concept where organizations consider needs of all stakeholders
When making decisions

Question 19

Stakeholders of companies served by social responsibility 6?

Answer 19

Customers, employees, suppliers, communities, environmental/human rights advocates

Question 20

Corporate governance

Answer 20

System by which company is directed and controlled

Question 21

Sarbanes Oxley act 2002

Answer 21

Protects interest of those that invest in publicly traded
companies by improving reliability and accuracy of
Corporate financial reports and disclosures

Question 22

Internal control

Answer 22

Process designed to provide reasonable assurance

That objectives are being achieved

Question 23

Preventive control

Answer 23

Deters undesirable events from occurring

Question 24

Detective control

Answer 24

Detects undesirable events that have already occurred