Managerial Accounting 8Th Edition - Hansen & Mowen

Front 1

What are the three broad objectives of Managerial Accounting?

Back 1

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.

Front 2

What is defined as: Searching for ways to increase the overall efficiency and productivity of activities by reducing waste, increasing quality and reducing cost?

Back 2

Continuous Improvement

Front 3

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?

Back 3

strategic decision making

Front 4

What is the authorizing of operational personnel to plan, control and make decisions without explicit authorization from middle and higher level management?

Back 4

Employee Empowerment.

Front 5

Detailed formulation of action to achieve a particular end

Back 5

Planning

Front 6

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

Back 6

Controlling

Front 7

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

Back 7

Feedback

Front 8

Financial accounting generates reports for whom?

Back 8

Outsiders of the company

Front 9

M or F acctng is internally focused

Back 9

Management accounting

Front 10

M or F acctng No Mandatory rules

Back 10

M acctng

Front 11

M or F acctng Financial and nonfinancial information' subjective information possible

Back 11

M acctng

Front 12

M or F acctng Empasis on the future

Back 12

M acctng

Front 13

M or F acctng Internal evaluation and decisions based on very detailed information

Back 13

M acctng

Front 14

M or F acctng Broad, multidicplinary

Back 14

M acctng

Front 15

M or F acctng Externally focused

Back 15

F acctng

Front 16

M or F acctng Must follow externally imposed rules

Back 16

F acctng

Front 17

M or F acctng Objective financial information

Back 17

F acctng

Front 18

M or F acctng Historical orientation

Back 18

F acctng

Front 19

M or F acctng Information about the firm as a whole

Back 19

F acctng

Front 20

M or F acctng More self contained

Back 20

F acctng

Front 21

____ is a systemwide intergrated approach that focuses management's attention on activities with the objective of improving customer value and resulting profit.

Back 21

Activity based management

Front 22

_____ is the difference between what a customer receives (customer realization) and what the customer gives up (customer sacrifice.)

Back 22

Customer Value

Front 23

The complete range of tangible and intangible benefits that a customer receives from a purchased product

Back 23

Total Product

Front 24

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

Back 24

Strategic Cost Management

Front 25

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

Back 25

Internal value chain

Front 26

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

Back 26

Industrial value chain

Front 27

Relationships among activities that are performed within a firm's portion of the industrial value chain.

Back 27

Internal linkages

Front 28

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

Back 28

External linkages

Front 29

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.

Back 29

Supply chain management

Front 30

The practice of encouraging (often by discounting) wholesalers and retailers to buy more product than they can quickly resell.

Back 30

Trade loading

Front 31

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

Back 31

Total Quality Management

Front 32

Positions that have direct responsibility for the basic objectives of an organization are reffered to as

Back 32

line positions

Front 33

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

Back 33

staff positions

Front 34

The chief accounting officier, who supervises all accounting departments. Not the CFO, but the...

Back 34

Controller

Front 35

This officer is responsible for the finance functions of a company...Not the CFO, but the...

Back 35

Treasurer

Front 36

SOX is...

Back 36

Sarbanes Oxley

Front 37

The PCAOB was created by SOX. What does it stand for?

Back 37

Public Company Accounting Oversight Board.

Front 38

Name the changes made with SOX.

Back 38

Established the PCAOB, enhanced auditor independence, tightened regulation of corporate governance, tightened control over management, increased focus on ethics.

Front 39

THIS involves choosing actions that are "right" "proper" and "just"

Back 39

Ethical Behavior

Front 40

Name the 10 core values for Ethical Behavior

Back 40

Honesty, Integrity, Promise keeping, Fidelity, Fairness, Caring for others, Respect for others, Responsible citizenship, pursuit of excellence, accountability

Front 41

What is the CMA

Back 41

Certificate in Management Accounting

Front 42

What is the CPA

Back 42

Crtified Public Accountant

Front 43

What is a CIA

Back 43

Certified Internal Auditor

Front 44

Most of the product costing and internal accounting procedures used today were developed when?

Back 44

Between 1880 and 1925

Front 45

The cash or cash equivalent value sacrificed for goods and services that is expected to bring a current or future benefit to the organization

Back 45

Cash

Front 46

The benefit given up or sacrificed when one alternative is chosen over another.

Back 46

Opportunity Cost

Front 47

Expired costs are called

Back 47

Expenses

Front 48

Management accounting systems are structured to measure and assign costs to entities called...

Back 48

cost objects

Front 49

Name some cost objects

Back 49

Product, customer, department, project, activity and so on for which costs are measured and assigned.

Front 50

A basic unit of work performed within an organization

Back 50

Activity

Front 51

Traceability is defined as

Back 51

The ability to assign a cost to a cost object in an economically feasible way by means of a cause and effect relationship.

Front 52

Costs that cannot be easily and accurately traced to a cost object:

Back 52

Indirect costs

Front 53

Costs that can be easily and accurately traced to a cost object.

Back 53

Direct Costs

Front 54

Tracing costs to cost objects can occur in one of two ways:

Back 54

Direct tracing or driver tracing

Front 55

The process of identifying and assigning costs that are exclusively and physically associated with a cost object

Back 55

Direct tracing

Front 56

The use of drives to assign costs to cost objects

Back 56

Driver tracing

Front 57

Observable causal factors that measure a cost object's resource consumption.

Back 57

Driver

Front 58

Costs that cannot be assigned to cost objects using either direct or driver tracing

Back 58

Indirect costs

Front 59

Assignment of indirect costs to cost objects

Back 59

Allocation

Front 60

Name the three methods of cost assignment

Back 60

direct tracing, driver tracing and allocation

Front 61

Of the 3 cost assignment methods, which is the most accurate?

Back 61

Direct tracing

Front 62

What cost assignment method relies on causal factors to assign costs to cost objects

Back 62

Driver tracing

Front 63

Of the 3 cost assignment methods, which is the least accurate?

Back 63

allocation. It should be avoided where possible.

Front 64

What are goods produced by converting raw materials through the use of labor and capital inputs such as plant, land and machinery?

Back 64

Tangible products

Front 65

What are tasks or activities performed for a customer or an activity performed by a customer using an organization's products or facilities?/

Back 65

Services

Front 66

Services differ from tangible products is what 4 ways?/

Back 66

Intangibility, perishibility, inseparability, heterogeneity

Front 67

Define intangibility

Back 67

buyers of services cannot see, feel, hear or taste a service before its bought.

Front 68

Define perishibility

Back 68

services cannot be stored for future use by a consumer but must be consumed when performed.

Front 69

Define Inseparability

Back 69

producers of services and buyrs of services must usually be in direct contact for an exchange to take place.

Front 70

Define Heterogeneity

Back 70

Greater chance of variation in the perfomance of services than in the production of products.