cost accounting basics

what is a balance scorecard and what are the 4 areas

an accounting report of the firms critical success factors in these areas:

1. financial performance

2. customer satisfaction

3. internal processes

4. learning and growth

what is a strategy map. how is it related to the balance scorecard?

a graphical representation of the organizations value proposition. used to depict cause and effects embodied in the balance scorecard.

value chain

an analytical tool firms use to identify the specific steps required to provide a product or service to the customer

what is the difference between ABC and ABM

ABC: improves accuracy of tracing costs

ABM: improves value of the products

what is business analytics

uses data to understand and analyze business performance strategically

what is total quality management

a method where management develops policies to ensure that the firm’s products exceed customers expectations

what is the theory of constraints (TOC)

find the bottleneck (aka the biggest holdup) of the company and fixing it so everything literally moves faster to make more money. faster=better in this context

list similarities and differences between CMA and CPA

what is the difference between cost drivers, cost objects, and cost assignments

cost drivers: a factor that can/will effect the amount of total cost

cost objects: the object you want to know the “price” of

cost assignments: assignment specific costs to specific objects

what is the difference between prime costs and conversion costs

prime costs: sum of direct materials and direct labor

conversion costs: sum of direct labor and overhead