Chapter 1 Flashcards
Financial Accounting focuses on serving _____ users.
Managerial Accounting focuses on serving _____ users.
External;
Internal
The 3 Parts of Managerial Accounting
1. Planning
2. Controlling
3. Decision Making
Planning involves:
Establishing goals and developing budgets.
Controlling involves:
Gathering feedback (in the form of performance reports) to ensure plans are being followed.
Decision Making involves:
Making a selection among competing alternatives.
In Strategic Management, a strategy is:
A “game plan” that enables a company to attract customers by distinguishing itself from competitors.
The 3 Customer Value Proposition Strategies:
- Customer Intimacy: Understand and respond to customer needs.
- Operational Excellence: Emphasize speed, convenience, and lower prices.
- Product Leadership: Lead with high product quality.
Risk Management
A process used by a company to proactively identify and manage risk.
Corporate Social Responsibility (CSR)
A concept whereby organizations consider the needs of all stakeholders when making decisions, including the community and the environment.
Lean (Just-In-Time) Production/Manufacturing
A production process wherein materials are ordered and goods manufactured only after an order is placed, reducing waste and the need for storage.
Traditional Production/Manufacturing
A production process wherein materials are ordered in advance and goods are manufactured and stored in inventory in anticipation of orders.
Organizational leaders unite the behavior of employees around two common themes:
- __________________
- __________________
- Pursuing Strategic Goals
- Making Optimal Decisions
The 3 Factors that Influence Employee Behavior:
- Intrinsic Motivation
- Extrinsic Incentives
- Cognitive Bias
