Introduction to Management Accounting - flashcards

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Statutory Requirement

Statutory Requirement

External rules for financial accounting

Management Accounting

Provision of information to internal users for decision-making

Financial Accounting

Provision of information to external parties

Future Oriented

Management accounting reports focus on future outcomes

Maximize Future Profits

Broad objective of commercial organizations

Globalization

Increased world trade

Deregulation

Removal of industry regulations

Product Life Cycles

Changes in the duration of product viability

Manufacturing and Information Technologies

Advancements in production and data processing

Environmental and Ethical Issues

Focus on sustainability and moral considerations

Value Creation

Emphasis on generating customer value

Customer Driven

Adapting to changing customer requirements

Cost and Management Accounting System

Provides cost allocation, decision support, and planning information

Artificial Intelligence

Simulation of human intelligence

Benchmarking

Measuring performance against best performing organizations

Big Data

Large volume of raw data inundating a business

Budget

Financial plan for implementing management decisions

Continuous Improvement

Ongoing search to reduce costs and improve quality

Control

Measurement, reporting, and correction of performance

Control Process

Setting targets and measuring actual results

Cost Accounting

Accounting for cost accumulation and inventory valuation

Cycle Time

Length of time from start to completion of a product or service

Digitalization

Use of digital technologies to change the business model

E-business

Using technology to support business activities

E-commerce

Using technology to support buying and selling

Employee Empowerment

Providing employees with information for continuous improvement

Ethical Behaviour

Behaviour consistent with honesty, fairness, and social responsibility

Financial Accounting

Accounting for external reporting

Intellectual Capital

Intangible benefits from workforce and relationships

Internet Commerce

Buying and selling goods and services online

Internet of Things

Interconnection of computing devices via the internet

Lean Manufacturing Systems

Systems to reduce waste and improve efficiency

Management Accounting

Accounting for internal decision-making and operational efficiency

Management by Exception

Focusing management attention on areas not meeting targets

Master Budget

Unifying statement of future expectations

Non-value-added Activities

Activities that can be reduced or eliminated without affecting customer value

Performance Reports

Reports comparing actual outcomes with planned outcomes

Product Life Cycle

Time from research to withdrawal of support

Stakeholders

Parties with an interest in an organization

Strategies

Courses of action to achieve objectives

Total Quality Management

Process of continuous improvement to deliver high-quality products