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21 Cards in this Set
- Front
- Back
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Accounting |
process of capturing, analyzing, recording and measuring financial information. -used to support informed judgements and decisions. |
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Stewardship |
-Entrusted with resources to plan, decide and control -Perform managerial roles |
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Shareholder's equity |
-A company's total assets-total liabilities. -Capital including retained earnings and subtraction of withdrawals |
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Just in Time |
-Inventory system in which managers order to reduce inventory and carrying costs |
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Shareholder's return |
-Paid in dividends to shareholders based on how much profit the business is making |
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Provision |
-Estimate of a reduction in value for an asset (eg. estimate of depreciation) |
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Owner's Equity |
Includes revenue, expenses, capital contribution and capital withdrawal |
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Attention directing |
-Helping managers interpret financial information to evaluate business performance -Compare between actual vs planned performance |
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Planning--> Decision Making-->Control |
1. Using financial info to establish goals and strategies to achieve them 2. Using financial info to make decisions consistent with the goals and strategies 3. Using financial info to maintain performance as close to plan |
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Trends in Management Accounting |
1. Value based management 2. Non-financial measures 3. Environmental accounting 4.Quality management
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Cost of Capital |
represents cost incurred by the organization to fund all of its components, comprimising the cost of equity and debt |
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Cost of debt Cost of equity |
debt=cost of interest, price charged by the lender equity=part capital growth, part dividend |
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WACC |
Weighted average cost of capital -different costs of each form of capital weighted by the proportions of different forms of debt and equity |
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Statement of Financial Position (Balance Sheet) |
Assets and Liabilities |
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Statement of Comprehensive Income (Income Statement) |
Revenue and Expenses |
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Information systems (SANC) |
Security- prevent unauthorized access Contingency-if security/intergrity controls fails, backup storage |
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Realizable Value |
Getting the amount you sold it for |
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Triple Bottom Line |
New types of marketing + innovative business approaches needed to achieve success |
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FLIC Prospectives |
Financial- increase price, volume, direct labour Learning/Growth- training, enhance sales skills Internal-reduce manufacturing costs, productivity Customers- customer satisfaction, service |
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Control Systems (CEDA) |
Communication Network-transmits information between other elements Assessor-determines what is happening by comparing it to standard/expectation Effector- alters behaviour if necessary Detector- measures what is happening |
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Management's discussion and analysis (MDA) |
Nature of the business Management's objectives and strategies to meet the objectives Entity's most significant resources Results of operations/prospects Critical performance measures/indicators |
