Cost Management - Part 1 Flashcards
It is a system that a business uses to collect, store, manage, process, retrieve and report its financial data
Accounting information system
It is a system where financial data of the organization is maintained. contains transactions (debit/credit)
Financial accounting system
It follows established rules and conversations to provide information as investors, government agencies , and banks
Financial accounting system
It identifies, collects, measures, classifies, and reports information that is useful to managers in costing (determining what something cost), planning, controlling, and decision making.
Cost management system
It is the process planning and controlling the cost associated with running a business
Cost management system
It helps determine how much the production of a good service will cost. It also assigns cost to individual products and services and other cost objects as specified by management.
Cost accounting system
It provides accurate and timely feedback concerning performance; concerned with what activities should be performed and assessing those activities
Operational control system
Vastly imported transportation and communication has led to a global market for many manufacturing service firms.
Global competition
Global competition allows companies to by and sell their services internationally. T/F
True
The deregulation of many services has increased in service industry. T/F
True
As the manufacturing industries has increased in importance, the service sector of the economy has increased in importance. T/F
False (manufacturing industry declined, service sector increase).
They are used to continuously monitor and control system wide operations
Computers
Accuracy in product cost increased because of advancements in available tools. T/F
True
The advances in information technology brought the emergence of?
Electronic Commerce
Advancements in technology increases _________ and _________ of data
Precision and Accuracy
A theory used to continuously improve manufacturing activities and non-manufacturing activities
Theory of Constraints
It is a demand-pull system that strives to produce a product only when its needed and only in the quantities demanded by customers
Just-in Time Manufacturing
It identifies the most important limiting factor that stands in the way of achieving a goal
Theory of constraints
In manufacturing terms, Constraint is often referred to as a?
Bottleneck
It can produce a competitive advantage for a firm. It typically follows JIT as a response to increase needs for quality and shorter response time
Computer integrated manufacturing
Define as carrying out marketing offers in a manner that results in maximum consumer satisfaction. Understanding Consumers real needs.
Consumer Orientation
It is the set of activities required to design, develop, produce, market, and deliver products and services to customers.
Value Chain
Management recognizes that a high proportion of production cost are committed during the development and design stage of a new product. T/F
True
The requirement to control the cost encourages the use of target costing and activity-based management. T/F
True
The two foundation principles that govern a state of manufacturing excellence
Continual Improvement
Elimination of waste
A philosophy of ___________________ in which managers strive to create an environment that will enable organizations to manufacture the perfect product.
Total Quality Management
It is defied as the continual process of detecting and reducing, pr eliminating errors in manufacturing.
Total Quality Management
TQM does not streamlines supply chain management, improves the customer experience and ensures that employees are up to speed with training. T/F
False (It streamlines supply chain management)
It is a crucial element in all phases of the value chain
Time
It appears to go hand in hand with increasing quality.
Decreasing non-value-added time
A business must respond and adapt to changes in the market. T/F
True
While quality and time are important, improving these dimensions without corresponding improvements in financial performance may be futile if not fatal
Efficiency
Accounting system information is used by management to:
Plan
Control
Make decisions
It is the detailed formulation of future actions to achieve a particular end. It requires setting objectives and identifying methods to achieve those objectives
Planning
It is the managerial activity of monitoring a plan’s implementation and taking corrective action as needed
Controlling
It is information that can be used to evaluated or correct the steps being taken to implement a plan
Feedback
It is required in a dynamic environment of a firm is to remain competitive or to establish a competitive advantage
Continuous improvement
The process of choosing among competing alternatives
Decision making
Decisions are based on information provided by the accounting system. T/F
True
