Cost Chapter 1

Question 1

Budget

Answer 1

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

Question 2

Chief Financial Officer

Answer 2

Executive responsible for overseeing the financial operations of an organization. Also called finance director.

Question 3

Control

Answer 3

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

Question 4

Controller

Answer 4

Financial executive primarily responsible for management accounting and financial accounting. Also called Chief Accounting Officer.

Question 5

Cost Accounting

Answer 5

Measures, analyzes, and reports financial and nonfinancial information relating to the costs of acquiring or using resources in an organization. It provides information for both management accounting and financial accounting.

Question 6

Cost-Benefit Approach

Answer 6

Approach to decision making and resource allocation based on a comparison of the expected benefits from attaining company goals and the expected costs.

Question 7

Cost Management

Answer 7

Approaches and activities of managers to use resources to increase value to customers and to achieve organizational goals.

Question 8

Customer Relationship Management

Answer 8

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

Question 9

Customer Service

Answer 9

Providing after-sale support to customers.

Question 10

Design of Products and Processes

Answer 10

Detailed planning and engineering of products and processes.

Question 11

Distribution

Answer 11

Delivering products of services to customers.

Question 12

Financial Accounting

Answer 12

Measures and records business transactions and provides financial statements that are based on generally accepted accounting principles. It focuses on reporting to external parties such as investors and banks.

Question 13

Learning

Answer 13

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

Question 14

Line Management

Answer 14

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

Question 15

Management Accounting

Answer 15

Measures, analyzes, and reports financial and nonfinancial information that helps managers make decisions to fulfill the goals of an organization. It focuses on internal reporting.

Question 16

Marketing

Answer 16

Promoting and selling products or services to customers or prospective customers.

Question 17

Planning

Answer 17

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 18

Production

Answer 18

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

Question 19

Research and Development

Answer 19

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

Question 20

Staff Management

Answer 20

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

Question 21

Strategic Cost Management

Answer 21

Describes cost management that specifically focuses on strategic issues.

Question 22

Strategy

Answer 22

Specifies how an organization matches its own capabilities with the opportunities in the market place to accomplish its objectives.

Question 23

Supply Chain

Answer 23

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 24

Sustainability

Answer 24

Development and implementation of strategies to achieve long-term financial, social, and environmental goals.

Question 25

Total Quality Management

Answer 25

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

Question 26

Value Chain

Answer 26

Sequence of business functions in which customer usefulness is added to products or services of a company.