Key Terms From Ch. 1 Of Managerial Accounting 8Th Edition

Front 1

Mgmt Accounting Information System

Back 1

provides info needed to satisfy specific mgmt objectives

Front 2

Mgmt Acct Info System: 3 Objectives

Back 2

1. Provide info for costing out services, products, and other objects of interest to mgmt.
2. Provide info for planning, controlling, evaluation, and continuous improvement.
3. Provide info for decision making.

Front 3

Continuous Improvement

Back 3

Searching for ways to increase the overall efficiency and productivity of activities by reducing waste, increasing quality, and reducing costs.

Front 4

Strategic Decision Making

Back 4

Process of choosing among alternative strategies with the goal of selecting one or more that provide a company w/a reasonable assurance of long-term growth and survival.

Front 5

Employee Empowerment

Back 5

Authorizing of operational personnel to plan, control, and make decisions w/out explicit authorization from middle- and higher-level mgmt.

Front 6

Planning

Back 6

The detailed formulation of action to achieve a particular end; it requires setting objectives and identifying methods to achieve those objectives.

Front 7

Controlling

Back 7

The managerial activity of monitoring a plan's implementation and taking corrective action as needed.

Front 8

Feedback

Back 8

Information that can be used to evaluate or correct the steps being taken to implement a plan.

Front 9

Performance Reports

Back 9

Financial and nonfinancial feedback in the form of formal reports that compare actual data w/planned data or benchmarks.

Front 10

Decision Making

Back 10

Process of choosing among alternatives; intertwined with planning and controlling.

Front 11

Financial Accounting Info System

Back 11

Primarily concerned w/the producing outputs for external users, using well-specified economic events as inputs and processes that meet certain rules and conventions.

Front 12

Characteristics of Financial Accounting

Back 12

1. Externally focused
2. Must follow externally imposed rules
3. Objective financial info
4. Historical orientation
5. Info about the firm as a whole
6. More self-contained

Front 13

Characteristics of Mgmt Accounting

Back 13

1. Internally focused
2. No mandatory rules
3. Financial and nonfinancial info; subjective info possible
4. Emphasis on the future
5. Internal evaluation and decisions based on very detailed info
6. Broad, multidisciplinary

Front 14

Activity-based Mgmt

Back 14

A systemwide, integrated approach that focuses mgmt's attention on activities w/the objective of improving customer value and the resulting profit.

Front 15

Customer Value

Back 15

Difference between what a customer received (customer realization) and what they give up (customer sacrifice).

Front 16

Total Product

Back 16

Complete range of tangible and intangible benefits that a customer receives from a purchased product.

Front 17

Postpurchase Costs

Back 17

Costs of using, maintaining, and disposing of the product.

Front 18

Strategic Cost Mgmt

Back 18

Use of cost data to develop and identify superior strategies that will produce a sustainable competitive advantage.

Front 19

Internal Value Chain

Back 19

Set of activities required to design, develop, produce, market, and deliver products and services to customers.

Front 20

Industrial Value Chain

Back 20

The linked set of value-creating activities from basic raw materials to the disposal of the final product by end-use customers.

Front 21

Internal Linkages

Back 21

Relationships among activities that are performed w/in a firm's portion of the industrial value chain (the internal value chain).

Front 22

External Linkages

Back 22

Activity relationships between the firm and the firm's suppliers and customers.

Front 23

Supply Chain Mgmt

Back 23

The mgmt of material flows beginning w/suppliers and their upstream suppliers, moving to the transformation of materials into finished goods, and finishing w/the distribution of finished goods to customers and their downstream customers.

Front 24

Total Quality Mgmt

Back 24

Philosophy in which manufacturers strive to create an environment that will enable workers to manufacture perfect (zero-defect) products.

Front 25

E-business

Back 25

Any business transaction or info exchange that is executed using info and communication technology.

Front 26

Line Positions

Back 26

Positions that have direct responsibility for the basic objectives of an organization.

Front 27

Staff Positions

Back 27

Positions that are supportive in nature and have only indirect responsibility for an organization's basic objectives.

Front 28

Controller

Back 28

Chief accounting officer; supervises all accounting departments. (staff)

Front 29

Treasurer

Back 29

Responsible for the finance function. (staff)

Front 30

Sarbanes-Oxley Act (SOX)

Back 30

Established stronger government control and regulation of public companies in the U.S.

Front 31

Publicly Traded Companies

Back 31

Companies that issue stock traded on U.S. stock exchanges.

Front 32

Ethical Behavior

Back 32

Involves choosing actions that are "right," "proper," and "just."

Front 33

CMA

Back 33

Certified Mgmt Accountant

Front 34

CPA

Back 34

Certified Public Accountant

Front 35

CIA

Back 35

Certified Internal Auditor