Chapter 1 Flashcards
Name the 5 steps in an organization’s information value chain.
Event Data Information Knowledge Decisions
Name the 2 main focuses of cost management information.
Usefulness
Timeliness
Name the 4 major management functions for which cost management information is provided.
Strategic
Planning and Decision Making
Management and Operational Control
Preparation of Financial Statements
A set of goals and specific action plans that, if achieved, provide the desired competitive advantage.
Strategy
Name the 3 main industry categories of business firms.
Manufacturing
Merchandising
Service
Merchandisers that sell to other merchandisers.
Wholesalers
Merchandisers that sell directly to consumers.
Retailers
Management accountants employ 13 methods that are useful in implementing strategy in the contemporary business environment. Name the 6 methods that focus directly on strategy implementation.
Balanced Scorecard and Strategy Map Value Chain Activity-Based Costing and Management Business Analytics Target Costing Life-Cycle Costing
Management accountants employ 13 methods that are useful in implementing strategy in the contemporary business environment. Name the 7 methods that help to achieve strategy implementation through a focus on process improvement.
Benchmarking Business Process Improvement Total Quality Management Lean Accounting The Theory of Constraints Sustainability Enterprise Risk Management
_____ is used to improve the accuracy of cost analysis by improving the tracing of costs to products or to individual customers.
Activity-Based Costing
_____ uses activity analysis and activity-based costing to help managers improve the value of products and services and increase the organization’s competitiveness.
Activity-Based Management
True or False
In target costing, the cost determines the price.
False
____ is a common strategic form of analysis in intensely competitive industries where even small price differences attract consumers to the lower-priced product.
Target Costing
Name the 2 competitive strategies.
Cost Leadership
Product Leadership / Differentiation
Which board did the Sarbanes-Oxley Act of 2002 create?
Public Company Accounting Oversight Board (PCAOB)
