Chapter 1 Flashcards
Enterprise resource Planning system
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
Financial accounting main focus
Reporting financial statements to external entities such as investors creditors etc.
Management accounting main focus
Process of measuring analyzing and reporting financial and non financial information to help managers make decisions to fulfill the goals of an organization
Managers use management accounting info to? (2 parts)
- Develop communicate and implement strategies
2. Coordinate product design production and marketing decisions and evaluate company performance.
Two key management questions
How will this information help managers do their jobs better?
Do he benefits of producing his information exceed the costs.
Cost accounting
Process of measuring analyzing and reporting financial and non financial information related to the costs of acquiring or using resources in an organization.
Cost accounting is used interchangeably with
Management accounting
Cost management
Activities that managers undertake to use resources In a way that increases a products value.
Cost management also includes making de idioms about what
Customer satisfaction quality and product development
Strategy
How organizations match its own capabilities with opportunities in the marketplace
Strategic cost management
Specifically focuses on strategic issues
Value chain
Sequence of business functions by which a product is made more useful to customers
Business functions in the value chain 6
Research and development Designs of products and processes Production Marketing Distribution Customer service
CRM customer relationship management
Strategy that integrates people and technology in all business functions to deepen relationships with customers partners and distributors
Supply chain
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
Key success factors
Cost and efficiency Quality Time Innovation Sustainability
Total quality management
Integrative philosophy of management for continuously improving he quality of products and processes.
Time dimensions
New product development
Customer response time
Benchmark
Using competitive information to continuously improve operations
Planning
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.
Budget
Quantitative expression of a proposed plan of action by management.
Control
Taking actions that mole net the planning decisions evaluating past performances and providing feedback to help future decision making
Key management accounting guidelines
Cost benefit approach
Behavioral technical considerations
Different costs for different purposes
Cost benefit
Benefits exceed the costs
Behavioral and technical considerations
Budgets have a behavioral effect by motivating and rewarding employees
Line management
Achieves goals of organization production marketing and distribution management
Staff management
Human resources IT and accountants provide advice and support
CFO chief financial officer
Executive responsible for overseeing the financial a operations of an organization.
Responsibilities of the CFO
Controllership Treasury Risk management Taxation Investor relations Strategic planning
Controller aka chief accounting officer
Executive responsible for management accounting and financial accounting.
Why do managers use cost accounting?
To make decisions about research and development, budgeting, production planning, pricing, products or services to offer customers
