Chapter 1

The process of measuring, analyzing, and reporting financial and nonfinancial information that helps managers make decisions to fulfill the goals of an organization.

The process of measuring, analyzing, and reporting financial and nonfinancial information related to the costs of acquiring or using resources in an organization.

Describes the activities managers undertake to use resources in a way that increases a product's value to customers and achieves an organization's goals.

Specifies how the organization matches its own capabilities with the opportunities in the marketplace.

How an organization creates value for its customers while distinguishing itself from its competitors.

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

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

Uses technology to coordinate all customer-facing activities (such as marketing, sales calls, distribution, and after-sales support) and the design and production activities necessary to get products to customers.

Describes the flow of goods, services, and information from the initial sources of materials and services to the delivery of products to consumers, regardless of whether those activities occur in one organization or in multiple.

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

Used to design products or services to meet customer needs and wants, to make these products with zero (or very few) defects and waste, and to minimize inventories.

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

Managers should spend resources if the expected benefits to the company exceed the expected costs. They rely on management accounting information to quantify these (although it is not easy to do so).

Such as production, marketing, and distribution management, is directly responsible for achieving the goals of the organization.

Such as management accountants and information technology and human-resources management, provides advice, support, and assistance to line management.

The financial executive primarily responsible for management accounting and financial accounting. Exercises control over the entire organization in a special way. By reporting and interpreting relevant data, they influence the behavior of all employees and helps line managers make better decisions.