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Ch. 1-5 - Managerial Acctg
n/a
39
Accounting
Undergraduate 2
02/12/2011

Additional Accounting Flashcards

 


 

Cards

Term
Managerial Accounting
Definition
the process of identifying, measuring, analyzing, interpreting, and communicating information in pursuit of an organization's goals
Term
What is the main function of managerial accountants?
Definition
to serve as internal business consultants, working side by side in X-functional teams with managers from all areas of the organization.
Term
Describe the day to day work of the management team.
Definition
-Decision Making
-Directing operational activities
-Planning
-Controlling
Term
Directing operational activities
Definition
running the organization on a day to day basis
Term
control
Definition
ensuring that the organization operates in the intended manner and achieves its goals
Term
Balanced Scorecard
Definition
a model of business performance evaluation that balances measures of financial performance, internal operations, innovation and learning, and customer satisfaction
Term
Objetives of Managerial Accounting activity
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

 

Term
Financial accounting
Definition
the use of accounting information for reporting to parties outside the organization
Term
What does the cost accounting system do?
Definition
accumulates cost data for use in both managerial and financial accounting
Term
What are line positions?
Definition
positions directly involved the provision of goods or services
Term
What is the difference between managerial and financial accounting?
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

Term
What are staff positions?
Definition
people who supervise activities that support the company's overall mission
Term
Explain the duties of the CFO.
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
Term
Explain the responsibilities of a treasurer.
Definition
Responsible for raising capital and safeguarding the organizatin's assets.
Term
Explain the responsibilities of an internal auditor.
Definition
Responsible for reviewing the accounting procedures, records, and reports in both the controller's and treasurer's areas
Term
Exchange rate
Definition
the price at which one country's currency can be converted into that of another country's
Term
Just-i-time production system (JIT)
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
Term
Total quality management (TQM)
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
Term
Continuous improvement
Definition
the constant effort to eliminate waste, reduce response time, etc; "price down/cost down" concept
Term
Kaizen costing
Definition
the process of cost reduction during the manufacturing phase of an existing product
Term
What are the objectives of a cost management system?
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
Term
Activity-based costing (abc)
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
Term
cost drivers
Definition
an event or activity that causes costs to be incurred by that activity
Term
Theory of Constraints
Definition
constraints that prevent an organization from reaching higher levels of achievement
Term
Sarbanes-Oxley act (2002)
Definition
requires companies to establish, assess, and regularly report on their internal controls over financial reporting
Term
Public company accounting oversight board (PCAOB)
Definition
to establish auditing standards and provide for an audit quality review process
Term
What are two journals produced by the Institute of Management Accountants (IMA) ?
Definition
"Management accounting quarterly", and "strategic finance"
Term
Give examples of period costs.
Definition
Research, development, selling, admin costs
Term
Operating expenses
Definition
period costs; expensed during the period in which they are incurred
Term
Idle time
Definition
time not spent productively by an employee due to breakdowns, or new setups
Term
Conversion costs
Definition
direct labor + overhead
Term
Prime costs
Definition
Direct material + direct labor
Term
out-of-pocket costs
Definition
require the payment of cash or other assets as a result of incurrence
Term
Sunk costs
Definition
costs incurred in the past
Term
differential cost
Definition
the amount by which the cost differs under two alternative actions
Term
Product-cost system
Definition
accumulates the cost incurred in a production process and assigns those costs to the organization's final products
Term
Job-order costing
Definition
where each distinct batch of production is called a job or job order
Term
Overhead application
Definition
a process of assigning manufacturing-overhead costs to production jobs
Term
predetermined overhead rate
Definition
Budgeted manufacturing-overhead cost / budgeted amount of cost driver (or activity base)
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