Managerial Accounting Terms Ch 1

Front 1

Managerial Accounting

Back 1

Accounting concepts and procedures that are relevant to preparing reports for internal users of accounting information

Front 2

budgets

Back 2

The financial plans prepared by managerial accountants

Front 3

Preformance Reports

Back 3

The reports used to evaluate the performance of managers and the operations they control

Front 4

management by exception

Back 4

investigation of departures from the plan that appear to be exceptional

Front 5

Variable Costs

Back 5

Costs that increase or decrease in proportion to increases or decreases in the level of business activity

Front 6

fixed costs

Back 6

costs that remain constant when there are changes in the level of business activity

Front 7

sunk costs

Back 7

costs incurred in the past

Front 8

oppoprtunity cost

Back 8

the value of benefits forgone when one decision alternative is selected over another

Front 9

direct costs

Back 9

costs that are directly traceable to a product, activity or department

Front 10

indirect costs

Back 10

those costs that either cannot be directly traced to a product, activity, or department or are not worth tracing

Front 11

incremental analysis

Back 11

the calculation of the difference in revenue and the difference in costs between decision alternatives

Front 12

incremental revenue

Back 12

the difference in revenue of one alternative over another

Front 13

incremental cost

Back 13

the difference in scost of one alternative over another

Front 14

value chain

Back 14

the fundamental activities a firm engages in to create value

Front 15

Enterprise resoruce planning systems

Back 15

systems that update mrp ssytems with better integration, relational databases, and graphical user interfaces

Front 16

Supply Chain Management System

Back 16

the organization of activities between a company and its suppliers in an effort to provide for the profitable development, production and delivery of goods

Front 17

controller

Back 17

the top mangerial accounting position in a company

Front 18

treasurer

Back 18

the person with custody of cash and funds

Front 19

Chief Information Officer

Back 19

the person responsible for a company's information technology and computer systems

Front 20

Chief Financial Officer

Back 20

The senior executive responsible for both accounting and financial operations

Front 21

Customer relationship management systems

Back 21

systems used to manage a varitey of customer interactions