Cost Chapter 1 Flashcards
Budget
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.
Chief Financial Officer
Executive responsible for overseeing the financial operations of an organization. Also called finance director.
Control
Taking actions that implement the planning decisions, deciding how to evaluate performance, and providing feedback and learning what will help future decision making.
Controller
Financial executive primarily responsible for management accounting and financial accounting. Also called Chief Accounting Officer.
Cost Accounting
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.
Cost-Benefit Approach
Approach to decision making and resource allocation based on a comparison of the expected benefits from attaining company goals and the expected costs.
Cost Management
Approaches and activities of managers to use resources to increase value to customers and to achieve organizational goals.
Customer Relationship Management
Strategy that integrates people and technology in all business functions to deepen relationships with customers, partners, and distributors.
Customer Service
Providing after-sale support to customers.
Design of Products and Processes
Detailed planning and engineering of products and processes.
Distribution
Delivering products of services to customers.
Financial Accounting
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.
Learning
Involves managers examining past performance and systematically exploring alternative ways to make better informed decisions and plans in the future.
Line Management
Managers (for example, in production, marketing, or distribution) who are directly responsible for attaining the goals of the organization.
Management Accounting
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.
Marketing
Promoting and selling products or services to customers or prospective customers.
Planning
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.
Production
Acquiring, coordinating, and assembling resources to produce a product or deliver a service.
Research and Development
Generating and experimenting with ideas related to new products, services, or processes.
Staff Management
Staff (such as management accountants and human resources managers) who provide advice and assistance to line management.
Strategic Cost Management
Describes cost management that specifically focuses on strategic issues.
Strategy
Specifies how an organization matches its own capabilities with the opportunities in the market place to accomplish its objectives.
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 the same organization or in other organizations.
Sustainability
Development and implementation of strategies to achieve long-term financial, social, and environmental goals.
Total Quality Management
Integrative philosophy of management for continuously improving the quality of products and processes.
Value Chain
Sequence of business functions in which customer usefulness is added to products or services of a company.
