Chapter 1

Question 1

Enterprise resource Planning system

Answer 1

Is a single database which collects data and feeds them into applications that support a company’s business activities such as purchasing production distribution and sales

Question 2

Financial accounting main focus

Answer 2

Reporting financial statements to external entities such as investors creditors etc.

Question 3

Management accounting main focus

Answer 3

Process of measuring analyzing and reporting financial and non financial information to help managers make decisions to fulfill the goals of an organization

Question 4

Managers use management accounting info to? (2 parts)

Answer 4

1. Develop communicate and implement strategies

2. Coordinate product design production and marketing decisions and evaluate company performance.

Question 5

Two key management questions

Answer 5

How will this information help managers do their jobs better?
Do he benefits of producing his information exceed the costs.

Question 6

Cost accounting

Answer 6

Process of measuring analyzing and reporting financial and non financial information related to the costs of acquiring or using resources in an organization.

Question 7

Cost accounting is used interchangeably with

Answer 7

Management accounting

Question 8

Cost management

Answer 8

Activities that managers undertake to use resources In a way that increases a products value.

Question 9

Cost management also includes making de idioms about what

Answer 9

Customer satisfaction quality and product development

Question 10

Strategy

Answer 10

How organizations match its own capabilities with opportunities in the marketplace

Question 11

Strategic cost management

Answer 11

Specifically focuses on strategic issues

Question 12

Value chain

Answer 12

Sequence of business functions by which a product is made more useful to customers

Question 13

Business functions in the value chain 6

Answer 13

Research and development 
Designs of products and processes
Production 
Marketing
Distribution
Customer service

Question 14

CRM customer relationship management

Answer 14

Strategy that integrates people and technology in all business functions to deepen relationships with customers partners and distributors

Question 15

Supply chain

Answer 15

Describes the flow of goods services and information from the initial sources of materials and services to the delivery of products to consumers regardless of whether those activities occur in one org or multiple orgs

Question 16

Key success factors

Answer 16

Cost and efficiency 
Quality 
Time
Innovation
Sustainability

Question 17

Total quality management

Answer 17

Integrative philosophy of management for continuously improving he quality of products and processes.

Question 18

Time dimensions

Answer 18

New product development

Customer response time

Question 19

Benchmark

Answer 19

Using competitive information to continuously improve operations

Question 20

Planning

Answer 20

Selecting an organizations goals and strategies predicting results under various alternative ways of achieving those goals deciding how to attain desired goals and communicate the goals and how to achieve them to he entire organization.

Question 21

Budget

Answer 21

Quantitative expression of a proposed plan of action by management.

Question 22

Control

Answer 22

Taking actions that mole net the planning decisions evaluating past performances and providing feedback to help future decision making

Question 23

Key management accounting guidelines

Answer 23

Cost benefit approach
Behavioral technical considerations
Different costs for different purposes

Question 24

Cost benefit

Answer 24

Benefits exceed the costs

Question 25

Behavioral and technical considerations

Answer 25

Budgets have a behavioral effect by motivating and rewarding employees

Question 26

Line management

Answer 26

Achieves goals of organization production marketing and distribution management

Question 27

Staff management

Answer 27

Human resources IT and accountants provide advice and support

Question 28

CFO chief financial officer

Answer 28

Executive responsible for overseeing the financial a operations of an organization.

Question 29

Responsibilities of the CFO

Answer 29

Controllership
Treasury
Risk management 
Taxation
Investor relations
Strategic planning

Question 30

Controller aka chief accounting officer

Answer 30

Executive responsible for management accounting and financial accounting.

Question 31

Why do managers use cost accounting?

Answer 31

To make decisions about research and development, budgeting, production planning, pricing, products or services to offer customers