Managerial Accounting - Chapters 1&2 Flashcards
What are IMA is over arching ethical principles?
Honesty fairness objectivity and responsibility
Customer value propositions
Customer intimacy, operational excellence, and product leadership
Enterprise risk management
A process used by a company to identify those risks and develop responses to them to enable it to be reasonably assured of meeting its goals
Corporate social responsibility
The concept where my organizations consider the needs of all stakeholders when making decisions. It extends beyond legal compliance to include voluntary actions that satisfies stakeholder expectations
Business process
A series of steps that are followed in order to carry out some task in business
Lean production
A management approach that organizes resources such as people and machines around the flow of business processes and it only produces units in response to customer orders it is often called just in time production
Intrinsic motivation
Motivation that comes from within us
Three attributes of a credible leader
Technical competence personal integrity and strong communication skills
Cognitive bias
Distorted thought processes
Budget
A detailed plan for the future that is usually expressed in formal quantitative terms
Controlling
The process of gathering feedback to ensure a plan as being properly executed or modified as circumstances change
Financial accounting
The phase of accounting that is concerned with reporting historical financial information to external parties such as stockholders creditors and regulators
Performance report
A report that compares budgeted data to actual data to highlight instances of excellent and unsatisfactory performance
Planning
Developing goals and preparing budgets to achieve those goals
Segment
Any part or activity of an organization about which manager seek cost revenue or profit data
Strategy
Accompanies game plan for attracting customers by distinguishing itself from competitors
Value chain
The major business functions that add value to the company’s products and services, such as research and development, product design, manufacturing, marketing, distribution, and customer service
Corporate governance
The system by which a company as directed and controlled
Sarbanes-Oxley act of 2002
Requires that both the CEO and CFO certify in writing their company’s financial statements
Established the public Company accounting oversight Board
Places the power to higher compensation terminate the public accounting firm that audits the company’s financial reports in the hands of the audit committee of the Board of Directors
Prohibits the public accounting firm from providing a wide variety of non-auditing services to an audit client
Requires a company’s annual report to contain an internal control report
Establishes severe penalties for altering or destroy any documents that may be eventually used in an official proceeding
Internal control
Process designed to provide reasonable assurance that the objectives are being achieved
What is managerial accounting?
The phase of accounting that is concerned with providing information to managers for use within the organization
Managerial accounting consists of planning controlling and decision-making
Used to assign easily traced cost to objects
Direct cost
Used to assign cost two objects that cannot be easily traced
Indirect cost
Accounting costs for manufacturing companies
Direct materials, direct labor, manufacturing overhead
