Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
35 Cards in this Set
- Front
- Back
|
What is meant by accurate |
Accurate Complete Costeffective Understandable Reliable Accessible Timely Easy to use |
|
|
Three Step Process for Budgeting |
Planning > Control > Decision Making |
|
|
Name some advantages centralised control. |
1. Increased level of control & co-ordination 2. Experienced people with an overview of the company make decisions 3. Ensures policies are consistent throughout the company. 4. Procedures such as ordering can be standardised. |
|
|
Name some disadvantages centralised control. |
1. Reduces day to day users input. 2. Risk of demoralising branch managers who may feel powerless to make their own decisions. 3. Bureaucratic and led from the top |
|
|
Name some advantages of decentralised control |
1. Reduces the stress and burdens of senior management 2. Empowers local managers, encouraging innovation and motivation 3. Subordinates may have a better knowledge of local conditions 4. Middle management are groomed to take over. 5. Faster decision making as there is no need to ask for permission. |
|
|
Name some disadvantages of decentralised control |
1. Reduction in uniformity may unsettle customers who expect the same 2. Head office can see more of the picture, its instructions may prove more profitable than local managers 3. Duplication of roles across the organisation. |
|
|
What is span of control? |
The number of subordinates that each manager has under their control. |
|
|
Define Scalar Chain |
The chain of command from the top of the organisation to the bottom, it is defined as the number of layers of management from the top to the bottom. |
|
|
List the four main culture types |
Power, Role, Task & Person |
|
|
How are cultures described |
The collection of traditions, values, policies, beliefs and attitudes that constitute a pervasive context for everything we think and do in an organisation. |
|
|
Below are stakeholders name if they are internal;/external and why they have an invested interest. A - Directors/Managers/Employees B - Customers C - Suppliers D - Government E - Local Community |
A - Internal - Livelihoods, careers & Reputations / Fair and growing renumeration B - External - Continuity of Supply C - External - Fair terms of trade, prompt payment and continuity of supply D -External - The welfare of employees, tax revenue, employment E - External - Infrastructure and welfare of employees. |
|
|
Define Sustainability |
Meeting the needs of the present without compromising the ability of future generations to meet their own needs. |
|
|
What are the risks of not acting sustainable |
Using up scare resources which causes inflation Government or legislations to protect said resources in future Fewer products being avaible in the future Irreversible damage to the environment. |
|
|
What is the triple bottom line? |
Financial, Social & Environmental factors |
|
|
What are the six keys aspects to uphold the principles of sustainability? |
1.Creating & Promoting an ethics based Culture 2.Championing the need for Sustainability 3.Evaulating & Quantifying reputations & other ethical risks 4.Take social, environmental and finical factors into account 5.Promiting sustainable practice 6.Raising awareness of social responsibility. |
|
|
ROCE or Return on Capital Employed |
Operating Profit / Capital *100 |
|
|
Inventory Holding Period |
Inventories / Cost Of Sales * 365 |
|
|
Receivables Collection Period |
Trade Receivables / Revenue * 365 |
|
|
Payables Period |
Trade Payables / Cost Of Sales * 365 |
|
|
What does PESTLE stand for? What does it be used for? |
Political Economical Social Technological Legal Environmental Used for looking at external factors the business can affect. |
|
|
What does SWOT stand for? |
Strengths Weaknesses Opportunities Threats |
|
|
Name the 4 groups of Data Analysis. |
Descriptive Diagnostic Predictive Prescriptive |
|
|
Name the 5 steps in a risk assessment process |
Identify the Risk Evaluate the Risk Respond to the Risk Ensure Compliance Monitor, review and report |
|
|
Describe a descriptive data analytics |
What happened? Analysis of the past, a status update. |
|
|
Describe a Diagnostic data analytics |
Why did it happen? Delving into the data and finding patterns or anomalies, asking why it happen and do we wish to encourage this or not? |
|
|
Describe a Predictive data aanalytics |
What happens next? Creating accurate estimations on what will happen and future trends - key word forecasting. |
|
|
Describe a Prescriptive data analytics |
What to do about it? Using predictive analytics and making recommendations based on these estimates, using internal and external pattern along with machine learning and business rules. |
|
|
What are the three reasons why an accountant should behave ethically? |
Maintain the reputation of the AAT Protection of public interest Compliance with law and regulation |
|
|
5 Step Process of a Risk Assesment |
Identify the Risk Evaluate the Risk Respond to the Risk Ensure Compliance Monitor, Review & Report |
|
|
4 Causes of Systematic Weakness |
Lack of Controls Poor Implementation of Controls Lack of Monitoring Lack of Leadership |
|
|
True or False A business that operates entirely online will not need to implement any physical controls |
False |
|
|
True or False Many traditional accounting controls have now been automated by digital systems |
True |
|
|
True or False A business that is very large may struggle to implement segregation of duties |
False |
|
|
True or False A very small business is likely to rely heavily on authorisation and approval controls |
True |
|
|
True or False A cash-based business will not need to perform any reconciliation because all transactions are settled immediately. |
False |
