Lecture 1

Question 1

It measures and reports financial and
nonfinancial information that helps
managers make decisions to fulfill the
goals of an organization.

Answer 1

Management Accounting

Question 2

• Its focus is on reporting to external parties.
• It measures and records business transactions.
• It provides financial statements based on
  generally accepted accounting principles.

Answer 2

Financial Accounting

Question 3

What the organization tries to deliver to customers

Answer 3

value proposition

Question 4

the usefulness a customer gains from a company’s product or service

Answer 4

value

Question 5

the sequence of business functions in which customer usefulness is added to products or services

Answer 5

Value Chain

Question 6

the price paid by the customer, given the product features and competitors’ prices

Answer 6

Cost

Question 7

the degree of conformance between what the customer is promised and what the customer receives

Answer 7

Quality

Question 8

the performance of the product, for example a meal in a restaurant that provides the diner with the level of satisfaction expected for the price paid

Answer 8

Functionality and features

Question 9

all the other elements of the product relevant to the customer

Answer 9

Service

Question 10

economies of scale

Answer 10

the savings that companies achieve because of increased volume

Question 11

Cost of goods manufactured refers to

Answer 11

the cost of goods brought to completion, whether they were started before or during the current accounting period.

Question 12

estimates > actual

Answer 12

overapplied

Question 13

estimates

Answer 13

underapplied