ACC 330- Ch 1 Management and Managerial Accounting

Budget

A quantitative expression of a proposal plan of action by management and is an aid to coordinating what needs to be done to execute that plan

Chief Financial Officer

The executive responsible for overseeing the financial operations of an organization.

• Also called a Finance director

Control

Taking actions that implement the planning decisions, evaluating past performance, and providing feedback and learning to help future decision making.

Controller

Provides financial information for reports to managers and shareholders and oversees the overall operations of the accounting system.

Cost Accounting

Process of measuring, analyzing, and reporting financial and nonfinancial information related to the costs of acquiring or using resourcing in an organization

Cost-Benefit Approach

Approach to decision making and resource allocation based on a comparison of the expected benefits from attaining company goals and the expected cost.

Cost Management

The approaches and activities of management to use resources to increase value to customers and to achieve organizational goals.

Customer Relationship Management (CRM)

A strategy that integrates people and technology in all business functions to deepen relationships with customers, partners, and distributors

Customer Service

Providing after-sale support to customers

Design of Product and Processes

The detailed planning, engineering, and testing or products and services.

Distribution

Processing orders and delivering products or services to csutomers.

Financial Accounting

Measures and records business transactions and provides financial statements that are based on GAAP. It focuses on reporting to external parties such as investors and banks.

Learning

Involves managers examining past performance and systematically exploring alternative ways to better-informed decisions and plans in the future.

Line Management

Managers (for ex, in production, marketing, or distribution) who are directly responsible for attaining the goals of the organization.

Management Accounting

measuring, analyzing, and reporting financial and nonfinancial information that helps managers make decisions to fulfill goals of an organization. Focuses on internal reporting.

Marketing

Promoting and selling products or services to customers sand prospective customers.

Planning

Selecting organizational goals, predicting results under various alternative ways of achieving those goals, deciding how to attain desired goals, and communicating the goals and how to achieve them to the entire organization.

Production

Acquiring, storing, coordinating, and assembling resources to produce a product or deliver a service.

Research & Development (R&D)

Generating and experimenting with ideas related to new products, services, or processes.

Staff Management

Staff (such as management accountants and human resource managers) who provide advice, support, and assistance to line management.

Strategic cost Management

Describes cost management that specifically focuses on strategic issues.

Strategy

Specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives.

Supply Chain

The flow of goods, services, and information from the initial sources of materials and services to the delivery of products to customers, regardless of whether those activities occur in the same organization or in other organizations.

Sustainability

The development and implementation of strategies to achieve long-term financial, social and environmental goals.

Total Quality Management (TQM)

An integrative philosophy of management for continuously improving the quality of the products and processes.

Value Chain

The sequence of business functions by which a product is made progressively more useful to customers.