Chapter 1 book

Question 1

consisting of small, detailed bits of information that can be used for multiple purposes

Answer 1

database
also known as a data warehouse or infobarn

Question 2

a single database that collects data and feeds them into applications that support a companys business activities, such as purchasing, distribution, and sales

Answer 2

ERP system
Enterprise Resource Planning

Question 3

focuses on reporting financial information to external parties such as investors, government agencies, banks, and suppliers based on Generally Accepted Accounting Principles (GAAP)

Answer 3

Financial accounting

Question 4

the process of measuring, analyzing and reporting financial and nonfinancial information that helps managers make decisions to fulfill the goals of an organization.

Answer 4

management accounting

Question 5

Managers use this type of accounting information to:
1. develop, communicate, and implement strategies
2. coordinate, design, operations, and marketing decisions and evaluate a companys performance

Answer 5

management accounting

Question 6

• this type of accounting information and reports do not have to follow set principles or rules

Answer 6

management accounting information

Question 7

2 key questions for this type of accounting information
1. how will this information help managers do their jobs better
2. do the benefits of producing this information exceed the costs?

Answer 7

management accounting

Question 8

Purpose of information: help managers make decisions to fulfill an organizations goals
management or financial accounting?

Answer 8

management

Question 9

Primary Users: managers of the organization
management or financial accounting?

Answer 9

management

Question 10

Focus and emphasis: future-oriented (budget for 2020 prepared in 2019)
management or financial accounting?

Answer 10

management

Question 11

Rules of measurement and reporting: internal measures and reports do not have to follow GAAP but are based on cost-benefit analyses
management or financial accounting?

Answer 11

management

Question 12

Time span and type of reports: varies from hourly information to 15-20 years, with financial and nonfinancial reports on products, departments, territories and strategies
management or financial accounting?

Answer 12

management

Question 13

Behavioral implications: designed to influence the behavior of managers and other employees
management or financial accounting?

Answer 13

management

Question 14

Purposes of information: communicate an organizations financial position to investors, banks, regulators, and other outside parties
management or financial accounting?

Answer 14

Financial

Question 15

Primary users: external users such as investors, banks, regulators, and suppliers
management or financial accounting?

Answer 15

Financial

Question 16

Focus and emphasis: past-oriented (reports on 2019 performance prepared in 2020)
management or financial accounting?

Answer 16

Financial

Question 17

Rules of measurement and reporting: financial statements must be prepared in accordance with GAAP and be certified by external, independent auditors
management or financial accounting?

Answer 17

Financial

Question 18

Time span and type of reports: annual and quarterly financial reports, primarily on the company as a whole
management or financial accounting?

Answer 18

Financial

Question 19

Behavioral implications: primarily reports economic events but also influences behavior because managers compensation is often based on reported financial results
management or financial accounting?

Answer 19

Financial

Question 20

the process of measuring, analyzing, and reporting financial and nonfinancial information related to the costs of acquiring or using resources in an organization

Answer 20

cost accounting

Question 21

the activites managers undertake to use resources in a way that increases a products value to cusstomers and achieves an organizations goals

Answer 21

cost management

Question 22

not only about reducing costs, also incljdes making decisions to incur additional costs

Answer 22

cost management

Question 23

3 strategies

Answer 23

1. cost leadership
2. differential strategy
3. focus strategy (low cost)

Question 24

the low cost leader in any market gains competitive advantage from being able to produce at the lowest cost
which strategy?

Answer 24

cost leadership strategy

Question 25

allows companies to desensitize prices and focus on value that generatees a comparitively higher price and a better margin which strategy?

Answer 25

differentiation strategy

Question 26

describes cost management that specifically focuses on strategic issues

Answer 26

strategic cost management

Question 27

Who are the most important customers, and what critical capability do we have to be competitive and deliver value to our customers? What is the bargaining power of our customers? What is the bargaining power of our suppliers? What substitute products exist in the marketplace, and how do they differ from out product in terms of features, price, cost, and quality? Will adequate cash be available to fund the strategy, or will additional funds need to be raised? What are these questions?

Answer 27

Questions Management accounting information helps managers formulate strategy for

Question 28

the sequence of business functions by which a product (including a service) is made progressively more useful to customers

Answer 28

value chain

Question 29

a strategy that integrates people and technology in all business functions to deepen relationships with customers, partners, and distributors.

Answer 29

CRM (customer relationship management)

Question 30

this things initiatives use technology to coordinate all customer facing activites (such as marketing, sales calls, distribution, and after slaes support ) and the design and production activites necessary to get products and services to customers

Answer 30

CRM (customer relationship management)

Question 31

an integrative philosophy of management for continuously improving the quality of products and processes

Answer 31

TQM (total quality management)

Question 32

the time it takes for companies to create new products and bring them to market

Answer 32

new produict development time

Question 33

describes the speed at which an organization responds to customer requests.

Answer 33

customer response time

Question 34

the development and implementationof strategies to achieve long term financial, social, and environmental goals

Answer 34

sustainability

Question 35

consists of selecting an organizations goals ans strategies, predicting results under alternative ways of achieving goals, deciding how to attain the desired goals and communicating the goals and how to achieve them to the entire organization

Answer 35

planning

Question 36

a quantitiatve expression of a proposed plan of action by management and is an aid to coordinating what needs to be done to execute that plan - also the most important planning tool when implementing strategy

Answer 36

budget

Question 37

comprises taking actions that implement the planning decisions, evaluating past performance, and providing feedback and learning to help duture decision making

Answer 37

control

Question 38

examing past performance and systematically exploring alternative ways to make better-informed decisions and plans in the future

Answer 38

learning

Question 39

the executive responsible for overseeing the financial operations of an organization

Answer 39

CFO/ finance director

Question 40

- controllership - tax - treasury - risk management - investor relations - strategic planning

Answer 40

areas CFO's are responsible for

Question 41

provides financial information for reports to managers and shareholders and oversees the overall operations of the accounting system which responsibility of the CEO is this ?

Answer 41

controllership

Question 42

plans income taxes, sales tax, and international taxes which responsibility of the CEO is this ?

Answer 42

tax

Question 43

oversees banking, short- and long-term financing investments, and cash management which responsibility of the CEO is this ?

Answer 43

treasury

Question 44

manages the financial risk of interest-rate and exchange-rate changes and derivatives management which responsibility of the CEO is this ?

Answer 44

risk management

Question 45

communcates with, responds to, and interacts with shareholders which responsibility of the CEO is this ?

Answer 45

investor relations

Question 46

defines strategy and allocates resources to implement strategy which responsibility of the CEO is this ?

Answer 46

strategic planning

Question 47

financial executive primarily responsible for management accounting and financial accounting (reporting and interpreting relevant data, influences the behavior of all employees and helps line managers make better decision)

Answer 47

the controller (chief accounting officer)

Question 48

managers who are directly responsible for attaining the goals of the organization

Answer 48

line management

Question 49

staff who provide advice, support, and assistance to line management

Answer 49

staff management