Intro to MNG Acc Flashcards
Accounting
Process of identifying, measuring and communicating economic info to extend the info to the users of information
Management Accounting
Concerned with the provision of information to people within the org to help make better decisions and improve processes.
Financial Accounting
Concerned with the provision of info to external parties outside rhe org
Differences between FAcc and MAcc
Legal Requirements
GAAP
For a limited period of time or segment
Time dimension
Reporting Frequency
Outline the decision-making process.
Identify Objective > Search for alternative options > Select most appropriate option > Implement decision > Compare actual outcomes to planned outcomes > Respond to divergencies from plan
Budget
A financial plan on how the decisions made by management are going to be implemented
Master budget
Merged budgets that shows the organization’s expectation for future periods consisting of cashflow statements and budget profits.
Control
Measurement, reporting and subsequent correction of performance in order to achieve management goals and objectives are achieved
Performance reports
They compare actual outcomes to planned outcomes and should be issued at regular intervals.
Application of management by expection
When performance reports provide feedback information and are used to highlight the areas that need work and devote their limited time to focus on theses area.
Impact of changing business enviroment to the Management accounting
Global Competition
Growth in Service industry
Changing product lifestyle
Advances in manufacturing technology
The impact of information technology
Enviromental Issues
Customer orientation
Product’s life cycles
The period form when the initial R&D expenditure to the time the support to customers is withdrawn
Lean manufacturing systems
Seek to reduce the waste through JIT prodcution systemn
Total Quality Management
A situation where all business functions are involved in a process of continuous quality improvement that focuses on consistently providing high quality products and services in a timely fashion.
Cycle Time
Length of time from the start to the completion of a product or service and is the
sum of processing time, move time, wait time
and inspection time.
Non-value added activities
Activities that can be reduced or eliminated without harming the products potential to the customer.
Employee empowerment
Process of giving employees information to be able to make actions without authorization from superious.
name the fundamental principles of accounting
Integrity
Objectivity
Confidentiality and professional competence and due care
Compliance with relevant laws and regulations
Benchmarking
Continuous process of measuring a firm’s products, services or activities against the other best performing org.
Name the functions of Management accounting
Provision of information to managers to make better decisions
Provide info with planning, control and performance measurement and continous improvement.
allocate costs between cost of goods sold and inventory for internal and external profit reporting.
Cost accoutning
Cost accumulation for inventory valuation to meet the requirements of external reporting and internal measurement.
Managment accounting
Provision of appropriate information for decision making control and performance evaluation.
E-business
The use of information and
communication technologies to support any
business activities, including buying and selling.
E-commerce
The use of information and
communication technologies to support the
purchase, sale and exchange of goods.
