Term
| Management Accounting Systems |
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Definition
| Provides information, both financial and non-financial, to managers and employees inside an organization. |
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Definition
| Communicate standard format economic information to individuals and organizations that are external to the company. |
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Term
| 3 Broad Classes of Organization Decision Making |
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Definition
| Planning, Organizing, Controlling |
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Definition
| Activities such as product planning (revenue and costs), production planning, (resource availability), and strategy development (the requirements of target customers). |
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Definition
| Activities focus on developing the organization systems that will develop, produce, and deliver the organizations products and the required infrastructure to support the primary production systems. i.e. assembly lines |
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Definition
| Activities focus on measuring and evaluating the performance of existing organization systems and entities to identify how each is contributing to achieving objectives. |
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Term
| Non-Financial Information |
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Definition
| Product Quality, Customer Satisfaction, and Service Response Rates |
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Term
| Cost Accounting Standards Board in the US |
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Definition
| Regulates how government contractors will report their costs for contract reimbursements |
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Term
| Two Characteristics of Management Accounting |
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Definition
In high performing situations, innovations in mgmt accounting practices were and continue to be driven by the info needs of evolving strategy.
Mgmt accounting innovations have usually been developed by mgrs and not professional accountants to address decision making needs! Must be pragmatic and must add value |
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Term
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Definition
Costs
Revenues
Profits
Sales |
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Term
| Activities Causing Financial Results |
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Definition
Developing Products
Making Products
Marketing Products
Selling Products
Delivering Products
Serving Customers |
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Definition
Price
Quality
Functionality
Service |
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Term
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Definition
| The relative price the customers pay, given the products features and competitors product features |
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Term
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Definition
| The degree of conformance between what the customer is promised and what the customer recieves |
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Term
| Functionality and Features |
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Definition
| The performance of the product, such as a meal that provides the level of satisfaction expected for the price paid. |
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Term
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Definition
All the other elements of the product relevant to the customer.
Customer Service before and after the purchase. |
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Term
| Chief Financial Officers Act of 1990 |
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Definition
| Requires each major federal agency to have a CFO who is responsible for the development, and reporting of cost information and the systematic measurement of performance. |
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Term
| Government Purchase and Results Act |
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Definition
Requires each major federal agency to:
establish top level agency goals
define how it intends to achieve said goals
demonstrate how it is going to measure program performance |
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Term
| What did Clinton say about the GPRA and what it would do? |
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Definition
Chart a course for endeavors paid for by taxpayers
See how well we are progressing
Tell the Public how we are doing
Stop the things that don't work
Never stop improving the things that work and are worth investing into |
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Term
| What 5 areas did the FASAB say that it was essential that federal agencies improve? |
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Definition
1) Budgeting and Cost Control
2) Performance Management
3) Determining Reimbursements and setting fees and prices
4) Program Evaluations
5) Making Economic Choice Decisions |
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Term
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Definition
Prescriptive and Define Behavior that is unacceptable and has direct consequences.
Example: companies protect clients with confidentiality and if an employee breaks that they are dealt with severely. |
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Term
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Definition
| Descriptive and Identify broad goes for organization behavior, such as honesty, fairness and equal treatment. |
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Term
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Definition
| The monetary value of goods and services expended to obtain current or future benefits |
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Term
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Definition
| Manufacturing costs incurred to produce the volume and mix of products made during the period |
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Term
| Generally Accepted Accounting Practices |
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Definition
| Specify the focus, content and form of financial statements focus on methods for computing costs rather than ho they might be best calculated to support a given decision. |
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Term
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Definition
Costs of assets that the financial accountant deems have been used up when goods and services are sold.
Depreciation of Assets |
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Term
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Definition
Include:
1) Direct Materials (raw goods)
2) Direct Labor (wages)
3) Manufacturing Overhead (equipment) |
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Term
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Definition
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Term
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Definition
| Occur when cost serves as a reference point for determining the selling price of a prospective product. |
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Term
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Definition
| Occur when deciding the market price for an existing product makes the product more profitable or when evaluating whether a process is efficient compared with the costs of similar internal or external processes. |
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Term
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Definition
Something for the which the mgmt accountant computes a cost
Examples: product, product time, or an organizational unit |
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Term
| Differences between how financial and managerial accountants view product costs |
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Definition
Financial accountant is focused on determining the total cost of all inventory
In Financial Acc, inventory cost includes only manufacturing cost, in mgr acc it includes all product related costs. |
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Term
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Definition
| Resources whose costs are proportional to the amount of the resource used. |
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Term
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Definition
| Costs associated with flexible resources |
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Term
| Capacity-Related Resources |
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Definition
| Acquired and paid for in advance of when the work is done |
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Term
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Definition
| Costs associated with capacity-related resources because they vary with the amount of capacity required |
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Term
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Definition
| The cost of a resource or activity that is required for or used by a single cost object. |
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Term
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Definition
| The cost of a resource that is used by more than one cost object. |
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Term
| Cost Volume Price Analysis |
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Definition
| Combining Information about variable and fixed costs with revenue info to project profits for different levels of volume. |
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Term
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Definition
The products price less its variable cost
Profit=(Units Sold X Contribution Margin per unit)-fixed cost |
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Term
| Units Required to Earn a Target Profit |
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Definition
| Target Profit + Fixed Costs /CM per unit |
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Term
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Definition
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Term
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Definition
| Fixed Cost/Contribution Margin Ratio |
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Term
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Definition
| An opportunity cost is the sacrifice one makes when using a resource. |
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Term
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Definition
| The period over which a decision maker cannot adjust capacity. no fixed costs just variable |
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Term
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Definition
| The period where capacity can be adjusted. Long Run costs are the sum of variable and fixed costs associated with a cost boject. |
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Term
| Life Stages of a Business |
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Definition
1) Starting Up
2) Early Growth
3)Reaching Boundaries of Existing Capacity
4) Expanding the product line and acquiring more capacity resources
5)Redefining the business
6)Continued Growth |
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Term
| Types of Production Activities |
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Definition
| Unit Related, Batch Related, Product Sustaining Customer Sustaining, Business Sustaining |
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Term
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Definition
| Activities whose volume or level are proportional to the number of units produced or to other measures, such as direct labor hours and machine hours that are themselves proportional to the amount of work done. |
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Term
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Definition
| Triggered by the number of batches produced rather than by the number of units manufactured, as in cookies, cupcakes etc. examples from class |
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Term
| Product-Sustaining Activities |
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Definition
Support the production and sale of individual products. Activities that provide the infrastructure that enables the production, distribution and sale of the product but not involved directly in the production of the product. Independent of the units of products produced. |
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Term
| Customer-Sustaining Activities |
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Definition
| Enables the company to sell to an individual customer but are independent of the volume and mix ofthe products (services) sold and delivered to the customer. |
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Term
| Business-Sustaining Activities |
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Definition
Those required for the basic functioning of a business. i.e managment, security, landscaping, housekeeping, etc. |
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Term
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Definition
| Determines the profitabiltiy of dealing with different customers or different types of customers. |
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