Term
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Definition
| the process of identifying, measuring, analyzing, interpreting, and communicating information in pursuit of an organization's goals |
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Term
| What is the main function of managerial accountants? |
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Definition
| to serve as internal business consultants, working side by side in X-functional teams with managers from all areas of the organization. |
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Term
| Describe the day to day work of the management team. |
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Definition
-Decision Making
-Directing operational activities
-Planning
-Controlling |
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Term
| Directing operational activities |
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Definition
| running the organization on a day to day basis |
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Term
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Definition
| ensuring that the organization operates in the intended manner and achieves its goals |
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Term
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Definition
| a model of business performance evaluation that balances measures of financial performance, internal operations, innovation and learning, and customer satisfaction |
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Term
| Objetives of Managerial Accounting activity |
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Definition
- Providing information for decision making and planning
- Assisting managers in directing and ontrolling operational actvities
- Motivating managers and other employees
- Measuring the performance of activities, subunits, managers, and other employees
- Assessing the organization's competitive poistion
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Term
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Definition
| the use of accounting information for reporting to parties outside the organization |
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Term
| What does the cost accounting system do? |
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Definition
| accumulates cost data for use in both managerial and financial accounting |
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Term
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Definition
| positions directly involved the provision of goods or services |
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Term
| What is the difference between managerial and financial accounting? |
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Definition
Users of information: M) withing organization; F) outside of organization
Regulation: M) Not required; F) Required and strict
Source of Data: M) Basic system and various other sources; F) exclusively drawn from the basic system
Nature of reports and procedures: M) focus on subunits withi the org. ; F) Reports focus on enterprise in entirety |
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Term
| What are staff positions? |
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Definition
| people who supervise activities that support the company's overall mission |
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Term
| Explain the duties of the CFO. |
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Definition
Chief financial officer; also called the "controller" and "comptroller" in non-profit organizations.
*responsible for supervising the personnel in the accounting department and for preparing info and reports used |
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Term
| Explain the responsibilities of a treasurer. |
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Definition
| Responsible for raising capital and safeguarding the organizatin's assets. |
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Term
| Explain the responsibilities of an internal auditor. |
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Definition
| Responsible for reviewing the accounting procedures, records, and reports in both the controller's and treasurer's areas |
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Term
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Definition
| the price at which one country's currency can be converted into that of another country's |
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Term
| Just-i-time production system (JIT) |
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Definition
| raw materials and parts are purchased or produced just in tie to be used at each state of the production process; this brings considerable cost savings from reduced inventory levels |
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Term
| Total quality management (TQM) |
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Definition
| the broad set of management and control processes designed to focus the entire organization and all of its employees on providing products or services that do the best job of satisfying the customer |
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Term
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Definition
| the constant effort to eliminate waste, reduce response time, etc; "price down/cost down" concept |
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Term
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Definition
| the process of cost reduction during the manufacturing phase of an existing product |
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Term
| What are the objectives of a cost management system? |
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Definition
- to measure the cost of the resources consumed in performing activities
-Identifying and eliminating non-value-added costs
-Determining the efficiency and effectiveness of all major activities performed in the enterprise
-Identifying and evaluating new activities that can improve the future performance |
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Term
| Activity-based costing (abc) |
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Definition
| a system developed to determine the cos of producing goods or services; it also helps management understand the causal linkages between activities and costs |
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Term
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Definition
| an event or activity that causes costs to be incurred by that activity |
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Term
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Definition
| constraints that prevent an organization from reaching higher levels of achievement |
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Term
| Sarbanes-Oxley act (2002) |
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Definition
| requires companies to establish, assess, and regularly report on their internal controls over financial reporting |
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Term
| Public company accounting oversight board (PCAOB) |
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Definition
| to establish auditing standards and provide for an audit quality review process |
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Term
| What are two journals produced by the Institute of Management Accountants (IMA) ? |
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Definition
| "Management accounting quarterly", and "strategic finance" |
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Term
| Give examples of period costs. |
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Definition
| Research, development, selling, admin costs |
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Term
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Definition
| period costs; expensed during the period in which they are incurred |
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Term
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Definition
| time not spent productively by an employee due to breakdowns, or new setups |
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Term
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Definition
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Term
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Definition
| Direct material + direct labor |
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Term
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Definition
| require the payment of cash or other assets as a result of incurrence |
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Term
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Definition
| costs incurred in the past |
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Term
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Definition
| the amount by which the cost differs under two alternative actions |
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Term
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Definition
| accumulates the cost incurred in a production process and assigns those costs to the organization's final products |
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Term
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Definition
| where each distinct batch of production is called a job or job order |
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Term
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Definition
| a process of assigning manufacturing-overhead costs to production jobs |
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Term
| predetermined overhead rate |
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Definition
| Budgeted manufacturing-overhead cost / budgeted amount of cost driver (or activity base) |
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