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70 Cards in this Set
- Front
- Back
What are the three broad objectives of Managerial Accounting?
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1 - provide info for costing out services, products and other objects of interest
2 - provide info for planning, controlling, evaluation and improvement 3 - Provide information for decision making. |
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What is defined as: Searching for ways to increase the overall efficiency and productivity of activities by reducing waste, increasing quality and reducing cost?
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Continuous Improvement
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What is defined as: the process of choosing among alternative strategies with the goal of selecting once or more strategies that provide the company with a reasonable assurance of long term growth and survival?
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strategic decision making
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What is the authorizing of operational personnel to plan, control and make decisions without explicit authorization from middle and higher level management?
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Employee Empowerment.
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Detailed formulation of action to achieve a particular end
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Planning
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Managerial activity of monitoring a plan's implementation and taking corrective action as needed.
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Controlling
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Information that can be used to evaluate or correct the steps being taken to implement a plan
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Feedback
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Financial accounting generates reports for whom?
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Outsiders of the company
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M or F acctng is internally focused
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Management accounting
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M or F acctng No Mandatory rules
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M acctng
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M or F acctng Financial and nonfinancial information' subjective information possible
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M acctng
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M or F acctng Empasis on the future
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M acctng
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M or F acctng Internal evaluation and decisions based on very detailed information
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M acctng
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M or F acctng Broad, multidicplinary
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M acctng
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M or F acctng Externally focused
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F acctng
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M or F acctng Must follow externally imposed rules
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F acctng
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M or F acctng Objective financial information
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F acctng
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M or F acctng Historical orientation
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F acctng
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M or F acctng Information about the firm as a whole
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F acctng
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M or F acctng More self contained
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F acctng
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____ is a systemwide intergrated approach that focuses management's attention on activities with the objective of improving customer value and resulting profit.
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Activity based management
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_____ is the difference between what a customer receives (customer realization) and what the customer gives up (customer sacrifice.)
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Customer Value
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The complete range of tangible and intangible benefits that a customer receives from a purchased product
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Total Product
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The use of cost data to develop and identify superior strategies that will produce a sustainable competitive advantage.
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Strategic Cost Management
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Set of activities required to design, develop, produce, market and deliver products and services to customers.
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Internal value chain
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Linked set of value creating activities from basic raw materials to the disposal of the final product by end-use customers.
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Industrial value chain
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Relationships among activities that are performed within a firm's portion of the industrial value chain.
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Internal linkages
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Activity relationships between the firm and the firm's suppliers and customers.
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External linkages
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The management of material flows beginning with suppliers and their upstream suppliers, moving to the transformation of materials into finished goods, and finishing with the distribution of finished goods to customers and their downstream customers.
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Supply chain management
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The practice of encouraging (often by discounting) wholesalers and retailers to buy more product than they can quickly resell.
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Trade loading
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Philosophy - strive to create an environment that will enable workers to manufacture perfect (zero defect) products. It replaced the "acceptable quality" theories of the past
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Total Quality Management
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Positions that have direct responsibility for the basic objectives of an organization are reffered to as
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line positions
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Positions that are supportive in nature and have only indirect responsibility for an organization's basic objectives are called...
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staff positions
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The chief accounting officier, who supervises all accounting departments. Not the CFO, but the...
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Controller
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This officer is responsible for the finance functions of a company...Not the CFO, but the...
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Treasurer
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SOX is...
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Sarbanes Oxley
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The PCAOB was created by SOX. What does it stand for?
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Public Company Accounting Oversight Board.
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Name the changes made with SOX.
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Established the PCAOB, enhanced auditor independence, tightened regulation of corporate governance, tightened control over management, increased focus on ethics.
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THIS involves choosing actions that are "right" "proper" and "just"
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Ethical Behavior
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Name the 10 core values for Ethical Behavior
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Honesty, Integrity, Promise keeping, Fidelity, Fairness, Caring for others, Respect for others, Responsible citizenship, pursuit of excellence, accountability
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What is the CMA
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Certificate in Management Accounting
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What is the CPA
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Crtified Public Accountant
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What is a CIA
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Certified Internal Auditor
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Most of the product costing and internal accounting procedures used today were developed when?
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Between 1880 and 1925
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The cash or cash equivalent value sacrificed for goods and services that is expected to bring a current or future benefit to the organization
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Cash
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The benefit given up or sacrificed when one alternative is chosen over another.
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Opportunity Cost
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Expired costs are called
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Expenses
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Management accounting systems are structured to measure and assign costs to entities called...
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cost objects
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Name some cost objects
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Product, customer, department, project, activity and so on for which costs are measured and assigned.
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A basic unit of work performed within an organization
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Activity
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Traceability is defined as
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The ability to assign a cost to a cost object in an economically feasible way by means of a cause and effect relationship.
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Costs that cannot be easily and accurately traced to a cost object:
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Indirect costs
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Costs that can be easily and accurately traced to a cost object.
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Direct Costs
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Tracing costs to cost objects can occur in one of two ways:
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Direct tracing or driver tracing
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The process of identifying and assigning costs that are exclusively and physically associated with a cost object
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Direct tracing
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The use of drives to assign costs to cost objects
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Driver tracing
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Observable causal factors that measure a cost object's resource consumption.
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Driver
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Costs that cannot be assigned to cost objects using either direct or driver tracing
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Indirect costs
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Assignment of indirect costs to cost objects
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Allocation
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Name the three methods of cost assignment
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direct tracing, driver tracing and allocation
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Of the 3 cost assignment methods, which is the most accurate?
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Direct tracing
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What cost assignment method relies on causal factors to assign costs to cost objects
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Driver tracing
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Of the 3 cost assignment methods, which is the least accurate?
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allocation. It should be avoided where possible.
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What are goods produced by converting raw materials through the use of labor and capital inputs such as plant, land and machinery?
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Tangible products
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What are tasks or activities performed for a customer or an activity performed by a customer using an organization's products or facilities?/
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Services
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Services differ from tangible products is what 4 ways?/
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Intangibility, perishibility, inseparability, heterogeneity
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Define intangibility
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buyers of services cannot see, feel, hear or taste a service before its bought.
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Define perishibility
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services cannot be stored for future use by a consumer but must be consumed when performed.
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Define Inseparability
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producers of services and buyrs of services must usually be in direct contact for an exchange to take place.
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Define Heterogeneity
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Greater chance of variation in the perfomance of services than in the production of products.
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