Chapter One: The Manager and Management Accounting

Question 1

What is Financial Accounting

Answer 1

The focus on reporting to external parties such as investors, governemnt agencies, banks and suppliers. It measures and records business transactions and provides financial statements that are based on GAAP.

Question 2

How does financial accounting information affect managers decisions?

Answer 2

Through compensations as may times this compensation is based on numbers in the financial statements

Question 3

What is Management Accounting

Answer 3

Accounting that measures, analyzes, and reports financial and nonfinancial information that helps managers make decisions to meet goals. It focuses on internal reporting. Managers use management accounting data to develop, communicate and implement strategy.

Question 4

What is cost accounting

Answer 4

The measure, analysis and reporting of financial and nonfinancial information relating to the costs of acquiring or using resources in an organization

Question 5

What is Cost Management

Answer 5

The approaches and activities of managers to use resources to increase value to customers and to achieve organizational goals

Question 6

What is Strategic cost management

Answer 6

Describes cost management that specifically focuses on strategic issues

Question 7

What is meant by budget

Answer 7

Quantitative expression of a proposed plan of action by management for a specified period and an aid to coordinating what needs to be dones to implement that plan

Question 8

What is an CFO

Answer 8

The executive responsible for overseeing the financial operations of an organization. ALso called the finance director

Question 9

What is meant by control?

Answer 9

Taking actions that implement the planning decisions, deciding how to evaluate performance, and providing feedback and learning that will help future decision making

Question 10

Who is the controller?

Answer 10

The financial executive primarily responsible for management accounting and financial accounting. Also called the CFO

Question 11

What is the cost-benefit approach?

Answer 11

Approach to decision-making and resource alocation based on a comparison of the expected benefits from attainging company goals and the expected costs.
The benefits must outweigh the costs.

Question 12

What is Customer Service?

Answer 12

Providing after-sale support to customers

Question 13

What is distribution?

Answer 13

The delivery of products or services to customers

Question 14

What is design of products and processes?

Answer 14

The detailed planning and engineering of products and processes.

Question 15

What is a finance director?

Answer 15

The CFO

Question 16

What is meant by learning?

Answer 16

Involves managers examining past performance and systematically exploring alternative ways to make better informed decisions and plans in the future

Question 17

What is line management?

Answer 17

Managers who are directly responsible for attaining the goals of the organization (for example, in production, marketing, or distribution)

Question 18

What is meant by marketing?

Answer 18

The promoting and selling of product or services to customers or prospective customers

Question 19

What is planning?

Answer 19

Selecting organization goals, predicting results under various alternative ways of achieving those goals, deciding how to attain the desired goals, and communicating the goals and how to attain them to the entire organization

Question 20

What is production?

Answer 20

Acquiring, coordinating, and assembling resources to produce a product or deliver a service

Question 21

What is Research and Development?

Answer 21

Generating and experimenting with ideas related to new products, services, or processes.

Question 22

What is staff management?

Answer 22

Staff (such as management accountatnts and human resources managers) who provide advice and assistance to line management

Question 23

What is strategic cost management?

Answer 23

Describes cost management that specifically focuses on strategic issues

Question 24

What is strategy?

Answer 24

Specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives

Question 25

What is a supply chain?

Answer 25

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 the same organization or in other organizations.

Question 26

What makes up the value chain?

Answer 26

The sequence of business functions in which customer usefulness is added to products or services of a company