Week 1 Lecture 1 - Intro To Cost And Management Accounting

Question 1

What are budgets equal to?

Answer 1

Future plans

Question 2

Financial accounting vs management accounting

Answer 2

Financial accounting is only historic, focusing on historical data and past financial transactions. - public consumption
Management accounting includes culture orientated elements like forecasts, budgets and projections. - private only

Question 3

Bargaining power of buyers?

Answer 3

Th pressure that customers can put on businesses to get them to provide higher quality products, better services, and lower prices.

Question 4

Bargaining power of suppliers

Answer 4

Suppliers pressuring companies by lowering product quality or availability or raising product prices.

Question 5

Management accounting helps

Answer 5

Managers formulate strategy’s

Question 6

Strategic decision making is..

Answer 6

Selecting the best course of action to achieve the goals and objectives of a business

Question 7

Strategy is

Answer 7

How an organization matches its own capabilities with he opportunities in the marketplace

Question 8

Value is

Answer 8

The usefulness a customer gains form a company’s product or service

Question 9

The value chain definition

Answer 9

The sequence of business functions by which a product is make progressively more useful to customers.

Question 10

the value chain functions (Read dead pompous making dead cucumbers)

Answer 10

Research and development
Design of products and processes
Production
Marketing (including sales)
Distribution
Customer service.

Question 11

Supply chain

Answer 11

Production + distribution = producing and delivering a product/service.
Supply chain is a network of companies and people that are involved in the production and delivery of a product or service.

Question 12

Value added costs

Answer 12

Costs that are added to products/services that the customers would miss if they were left out.

Question 13

Non value added costs

Answer 13

Costs that are added to products/services that the customers would not miss if they were left out. E.g. patents and legal work

Question 14

Value engineering

Answer 14

A systemation evaluation of all aspects of the value chain, to reduce costs and achieve a quality level that satisfies customers.
Providing necessary functions in a project at the lowest costs.

Question 15

Key success factors (cats quails Tim ice soup)

Answer 15

Cost and efficiency
Quality
Time
Innovation
Sustainability

Question 16

5 step decision making process:
(Ice over mountains match ice)

Answer 16

Identify the problem
Obtain information
Make predictions about the future
Make decisions by choosing amount alternatives
Implement the decision, evaluate performance and learn.

Question 17

Management accounting guildlines:
(Come be dessert)

Answer 17

Cost benefit approach
Behavioral and technical considerations
Different cost for different purposes

Question 18

Cost benefit approach guideline:

Answer 18

Compares the benefits of an action/purchase to the costs. Generally the benefits should exceed the costs.

Question 19

Behavioral and technical considerations guildline:

Answer 19

recognizes that management is primarily a human activity that should focus on encouraging individuals to do their jobs better.

Question 20

Different costs for different purposes guidelines:

Answer 20

Managers use alternative ways to compare costs in different decision making situations because there are different costs for different purposes.

Question 21

Line management

Answer 21

Management of employees who are directly involved in the production or delivery of products, goods and/or services.

Question 22

Staff management

Answer 22

Improving employees performance over time, recruitment, delevopemtn. Provides assistance to line management