Management Accounting Review

Flashcards covering key vocabulary and concepts from the management accounting lecture notes.

Management Accounting

Processes and techniques that focus on the effective and efficient use of organizational resources to support managers in enhancing customer and shareholder value.

Financial Accounting Focus

Aimed at external stakeholders (investors, regulators).

Management Accounting Focus

Internally focused, catering to managers and employees with a strong focus on planning and control for efficient resource utilization.

Cost Accounting

Common terminology that is generally interchangeable with 'Management Accounting.'

Sociological Perspective of Accounting

A socially constructed discipline that reflects and develops society, influencing organizational discourse, political decision-making, and everyday language.

Accounting's Active Role

Affecting resource allocation and decision-making, contributing to the creation of economic realities beyond merely reporting on corporate operations.

Historical Perspective of Management Accounting

Emerged as companies adapted to new technologies during the industrial revolution, with new methods for tracking expenses and aiding in management decisions.

Michael Porter

Harvard professor who became a prominent expert on strategy and competition, creating concepts like the value chain framework and the five forces model.

Ethics in Management Accounting

Professional integrity is essential, with professional accounting associations providing membership requirements and moral principles for management accountants.

Product Costing

Categorization and treatment of costs, including the differences between direct and indirect costs, product and period expenses, and fixed and variable costs.

Cost-Cutting Tactics in Aviation

Fuel hedging, flight route optimization, turnaround time reduction, purchasing fuel-efficient aircraft, and outsourcing non-core operations.