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24 Cards in this Set
- Front
- Back
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Provision of acct info for company internal users; also called internal accounting |
Managerial accounting |
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3 objectives of Managerial acct |
Planning Controlling Decision-making |
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Managerial activity of detailed form of action to achieve particular end; requires setting objectives & identifying achievemt methods; can be financial or non |
Planning |
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Managerial activity of monitoring plan in place, comparing actual perform from expected perform and taking corrective action if needed; can be financial or non |
Controlling |
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Process of choosing among competing alternatives |
Decision-making |
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Managerial acct specifically does what- |
Identifies; Collects; Measures; Classifies & Reports financ & non info useful to internal users |
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6 diffs between Manag and Financ acct |
Users- internal Restrictions- no official Info type-subjective inc. nonfinc Time- future sight Focus- detail (i.e. sections) Scope- multidisciplinary |
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More detailed approach to determine cost of goods & services; more accurate costing (ABC) |
Activity-based costing |
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Key focus establishing competitive advantage thru better customer relations; differ b/t what customer receives and what they give up on purchase of good or service; both tangible and intangible |
Customer value |
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Strategy to provide same or better value at lower cost |
Cost leadership strategy |
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Strategy to provide unique product/service |
Product differentiation |
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Set of activities required to design, develop, produce, market, deliver and support products or services |
Value chain |
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Continual search for ways to increase overall efficiency and productivity by reducing waste, increasing quality and managing cost |
Continuous improvement |
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Philosophy where manufacturers strive to create environment to enable workers to manufacture perfect products |
Total quality management |
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Change in accounting to adjust for eliminating waste; organized cost according to value chain |
Lean accounting |
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Positions that have direct respons for basic operations of org |
Line positions |
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Support positions with only indirect respons for basic objectives of org |
Staff positions |
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Involves choosing actions that are right, proper and just |
Ethical behavior |
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Both of these have established ethical standards for accountants; stress importance of competence, confidentiality, integrity and credibility (objectivity) |
AICPA and IMA |
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Three major forms of cert to managerial accountants |
Cert in mngmt acct Cert in public acct Cert in internal audit |
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Passed rigorous exam, met exp requirement & particip in contin education; purpose is to establish managerial acct as a recognized prof discipline |
Cert in Mgmt Acct. (CMA) |
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Oldest and most well-known cert in acct; purpose is to provide minimal prof qualif for external auditors; only this is permitted to serve as external auditor |
Cert in Public Acct. (CPA) |
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Passed comprehensive exam designed to ensure technical competence and has 2 years exp. |
Cert Internal Auditor (CIA) |
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Both the AICPA and IMA stress these ethical standards of conduct |
Competence Confidentiality Integrity Credibility (objectivity) |
