Management Accounting Review

These flashcards cover key concepts related to management accounting, including definitions, principles, and relevant financial terms.

CMA

Certified Management Accountant, a credential associated with management accountants.

Management Accounting

The field that produces information primarily for managers within an organization.

Primary Users of Management Accounting Information

Managers in organizations.

Financial Accounting

The field of accounting that develops information for external parties such as stockholders, suppliers, banks, and governmental regulatory bodies.

False Statement in Management Accounting

Management accounting produces information for managers in an organization.

GAAP

Generally Accepted Accounting Principles, which are connected to financial accounting.

Focus of Financial and Management Reports

Financial reports focus on the organization as a whole; management reports focus on segments of the organization.

Variance

The difference between budgeted costs and actual costs; can be favorable or unfavorable.

Cost-Benefit Balances

Considerations for managers when designing accounting systems.

Confidentiality in Accounting

The fundamental principle violated if confidential information is shared without authorization.

Break-even Point

The level of sales at which total revenues equal total costs.

Contribution Margin

The amount per unit that contributes to fixed costs and profit.

Selling Price

The price at which a product is sold to consumers.