Prologue: Work of Management Notes + Mistakes in HW1 + HW answers

Big Data

_ refers to large collections of data that are gathered from inside or
outside a company to provide opportunities for ongoing reporting and
analysis.

Variety

Volume

Velocity

Value

Veracity

The 5 ‘Vs’:
- refers to the data formats in which information is stored.
- refers to the continuously expanding quantity of data that
companies must gather, cleanse, organize.
- speaks to the rate at which data is received and acted on by
organizations.
- implies that the time and money organizations expend to analyze Big
Data.
- refers to the fact that users expect their data to be accurate and
trustworthy.

Data analytics

visualization

_ refers to the process of analyzing data with the aid of
specialized systems and software to draw conclusions about the information
they contain

Managers often communicate the findings from their data analysis to others through data _ techniques

Institute of Management Accountant’s (IMA)

The _ Statement of Ethical Professional Practice provides
guidelines for ethical behavior

1. Recognize and communicate professional
   limitations that preclude responsible judgment.

2. Maintain professional competence.

3. Follow applicable laws, regulations, and standards.

4. Provide accurate, clear, concise, and timely decision support information.

Competence includes:

Confidentiality includes:

Integrity includes

Credibility includes

◦ Discuss the conflict with immediate supervisor or
next highest uninvolved managerial level.
◦ If immediate supervisor is the CEO, consider the
board of directors or the audit committee.
◦ Contact with levels above the immediate supervisor
should only be initiated with the supervisor’s
knowledge, assuming the supervisor is not involved.

---

◦ Except where legally prescribed, maintain
confidentiality.
◦ Clarify issues in a confidential discussion with an
objective advisor.
◦ Consult an attorney as to legal obligations.

IMA Guidelines for Resolution of an Ethical Conflict

1. Follow employer’s established policies

2. If following employer’s established policies for conflict resolution do not work, consider these additional practices

Ethical standards in business are essential for a
smooth functioning economy.

Without ethical standards in business, the
economy, and all of us who depend on it for
jobs, goods, and services, would suffer.

Abandoning ethical standards in business would
lead to a lower quality of life with less
desirable goods and services at higher prices

why have ethical standards?

strategy

is a “game plan”
that enables a company
to attract customers
by distinguishing itself
from competitors.

customer intimacy strategy

operational excellence strategy

product leadership strategy

3 customer value propositions

understand and respond to individual customer needs

deliver products and services faster, more conveniently, and at lower prices

offer higher quality products

customer intimacy strategy

operational excellence strategy

product leadership strategy

enterprise risk management

A process used by a company to proactively
identify and manage risk. This includes
considering whether to avoid the risk,
accept the risk, or reduce the risk?

Once a company identifies its risks, perhaps the
most common risk management tactic is to reduce
risks by implementing specific controls.

preventive

detective

preventive

preventive

detective

detective

detective o r preventive

Classify if its preventive or detective

• authorizations

• reconciliations

• segregation of duties

• physical safeguards

• performance reviews

• maintaining records

• information systems security

Environmental, social, and governance responsibility
(ESG)

is a concept whereby organizations consider
the needs of all stakeholders when making decisions.

business functions making up the value chain

Lean Production

is often called Just-In-Time (JIT) production.

produce goods in anticipation of sales → store inventory → make sales from finished goods inventory

lean production: traditional manufacturing process

pursuing strategic goals and making optimal decisions

2 common themes of organizational leaders

• Intrinsic Motivation
• Extrinsic Incentives
• Cognitive Bias

factors that influence behavior

management accounting

relates to the provision of appropriate information, including cost information for decision-making, planning, control, and performance evaluation

cost accounting

defines cost and valuates inventories to help managers run businesses

yes, they are sometimes interchangeable — with a function that helps companies make better decisions

are management and cost accounting intertwined?

competence

confidentiality

integrity

credibility

ethics has 4 broad areas