Accounting Applications Series

Management Functions

Four functions of management which are planning, organizing,leading and controlling.

Sunk Cost

A cost that a business incurs but can't recover

Costing

Determing cost of production or operation of business by assigning expenses to various stages of productions or operations

Risk Transfer

Insurance risk is shifted to another party(insurer) by means of insurance policy

Risk Avoidance

Used when businesses predict risks and refrain from certain practices and activities to avoid that risk

Consolidation

Combining assets, liabilities, equities and operating accounts of a business and it's subsidiaries into one account or combining two or more businesses through purchase merger and ownership transfer of a new business.

Transparency

Fully and accurately disclosing of financial information to the public

Currency

Money

Income Tax

Calculated as a percentage of the taxable income workers earn while on the job

Price

The value, in terms of money,placed on a good or service

Financial Institutions

Organizations that are public or private and act as a way between savers and borrowers of funds

Financial Goals

Monetary objectives of an individual business or an organization that are decided by future needs of those entities

Time Value of Money

Increase of an amount of money due to the interest earned over time or dividends paid

Differential Cost

The difference in cost between two or more business decisions

Property Tax

Main source of money for local govts. Based on land and buildings

Expenditure

Payment of cash for goods and services to settle and obligation. Seen as an invoice or receipt

Bank Statement

A document showing activity on your account over previous month including beginning and ending balance and all inflows and outflows.

Reporting

Used in finance to disclose an organization’s financial standing

Database

systematic organization of information that allows easily updating and analysis of data.

Customer Relationship Management(CRM)

A technology for managing a company's relationships and interactions with customers and potential customers, streamlining processes, and improving profitability.

Savings

A portion of income not spent, typically set aside for future use or emergencies.

Cost of Goods Sold

Line on an income statement which shows cost of raw materials and labor needed to produce a product for consumers

Inventory Management

The process of buying and storing materials and products while controlling costs

Tax Law

Area law that governs taxation-fees charged by the government on products, services, income, or activities.

Credit

A way to receive cash or goods, while paying later.