Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Management Accounting Strategy > Chapter 3 MAS > Flashcards

Chapter 3 MAS Flashcards

1
Q

What is organisations structure

A

Grouping of people into departments or section and the allocation of responsibility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Name five components of Mintz erg organisations

A 
Strategic apex
Operating core
Middle line
Support stuff 
Technostructure
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What does Mintzberg effective organisation say

A

It suggest that the organisation can be analysed i six building blocks and that effective Co-ordination will be needed to integrate the building blocks into one cohesive unit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Operating core

A

Basic work of the organisation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Strategic apex

A

Higher levels of management responsible for formulating the strategy and long-term plans

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Middle line

A

Links the strategic apex to the operating core, includes middle and lower management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Technostructure

A

Responsible for designing procedures and standards

It also includes accountants and computer specialist

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Support stuff

A

Provide services to the organisation which support operations /production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Ideology

A

Organisation value and beliefs (culture)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Entrepreneurial structure

A

Structure build around the owner’s manager

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Functional structure

A

Groups together employees that undertake similar tasks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Divisional structure

A

Splits organisation into several division either product based or geographic based.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Matrix structure

A

A combination of a functional and a divisional structure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Tall structure

A

Few managerial levels

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Flat organisations

A

Many manegerial levels

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Scaler chain

A

Length

The line of authority which can be traced up or down the chain command

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Span of control

A

How many people report to one superior

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Factors that influence the span of control includes what?

A

Nature of the work
Type of personnel
Location of personnel

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Centralization structure

A

The upper levels of an organisation’s hierarchy retains the authority to make decision

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Decentralization structure

A

The authority to make decisions is passed down to units and people at lower levels

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Characteristics of entrepreneurial structure

A
  • Build around the owner’s manager
  • Typical of small Companies
  • structure is totally centralized with all key decisions being made by the strategic leader /owner
22
Q

Dis(Advantages) of entrepreneurial structure

A

Advantages

  • Fast decision making
  • Good control
  • Mare responsive to market
  • Close bond to workforce

Disadvantages

  • success is dependent on the capability of the owner-manager
  • lack of career structure
  • cannot cope with deversification (growth)
23
Q

Characteristics of functional structure

A
  • used commonly in organisation that have outgrown the entrepreneurial structure
  • group employees that undertake similar tasks
  • appropriate to smaller companies with few products and location and which exists in a relatively stable environment
24
Q

Dis(Advantages) if functional structure

A

Advantages

  • economic of scale
  • Standisation of outputs system
  • specialists more conformable
  • career opportunities

Disadvantages

  • empire building
  • slow adaption to market changes
  • cannot cope with growth
25
Characteristics of divisional structure
Headed by general manager who takes responsibility for their own resources
26
Dis(Advantages) of divisional structure
``` Advantages *enables product/geographic growth *clear responsibility for divisions *training of hrnrra managers ' decisions making *top management free to vo cetrayr on strategic matters. ``` Disadvantages * duplication * lack of goal congruence * potential loss of control * allocation of central costs can be a problem * specialist may feel isolated
27
Characteristics of Matrix structure
* combines the benefits of functional and divisional structure * found in multi-product and multipl functional organisations with significant interrelationships and intrerpendencies
28
Dis(Advantages) of Matrix structure
Advantages * advantages of both functional and divisional structure * flexibility * encourage teamwork and exchange of opinions and expertise Disadvantages * dual command * lack of individual accountability * time consuming meetings
29
Factors affecting the amount of De(centralization)
``` Management style The ability of management /employees Geographic spread The size of the organisation Ideology ```
30
Advantages of decentralization
* senior management free to concentrate on strategic stuff * better local decision * Better motivation due to increase empowerment employees * quick response
31
Disadvantages of decentralization
Loss of control by senior management and lack of standarsation Dysfunctional decision Poor decisions made by inexperienced managers Training cost Duplication of roles within an organization
32
Traditional hierarchical triangle | Bottom of triangle
Broad base of finance workers carrying out operational enabling roles
33
Traditional hierarchical triangle | Middle of the triangle
Narrow set of management level finance workers who carry out shaping roles
34
Traditional hierarchical triangle | Top of the triangle
Narrower group of senior finance staff and concentrate on narrating how role of finance (corporate) reporting
35
Diamond shape - digital age | Much lower level
Assembly and processing tasks performed by technology
36
Diamond shape - digital age | Central bulge
As a result of many higher services Now being offered
37
Diamond shape - digital age | Flat top
Move to collaborative Finance leadership approach
38
Diamond shape - four levels
Level 1 senior finance team Level 2 strategic business partnering Level 3 digital centres of excellence Level 4 smart finance factories
39
Senior finance team
Leads the finance team to achieve the desired organizational impact
40
Strategic business partnering
Work with internal and external stakeholders to influence and shape how the organization creates /preserves value.
41
Digital centres of excellence
Specialist generate further insight above value creation and preservation in areas of specialism
42
Smart finance factories
Assemble and extract data to provide information and preliminary insights
43
3 main reason why the finance function is changing
1. The changing mandate for finance 2. Technology 3. Finance function capability
44
Outsourcing
Contracting out aspects of the work, previously done in house. To specialist providers
45
Offsouring
Relocation of corporate activities to foreign country
46
Shared service Centre
Centralized function, serving a large multinational organisations. Sometimes referred to as internal outsourcing
47
Transaction costs
Cost of having business activitity performed by a third party. Classified as indirect cost
48
Main types of transaction cost
Search and information cost Bargaining cost Policing and enforcement costs
49
Service level agreements (SLA)
It is negotiated agreement between the suppliers and the customer and is legal agreement regarding the level of service to be provided
50
Benefits and drawbacks of outsourcing the finance function s activities
Advantages * Cost reduction * Radical transformation * Access to superior capabilities, expertise and resources * Business partnering Disadvantages * Loss of control * Managing the outsourced services * Cause of disruption * Risk of intellectual property theft and data breaches. * Erosion of internal knowledge and skills.
51
Features of Matrix structure fl
Functional groups Geographic divisions Product based division Teams
52
Explain how finance function is copeing with the shift of organisation
* it has a unique end to end views of the organisation understanding every activity has a financial concequence * its accounting information is trusted and credible * it already provides a framework for performance * it brings professional, evidence based objectivity to decision making

Management Accounting Strategy (12 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions