Exam 1

Quantitative expression of a proposed plan of action by management for a specified period and an aid to coordinating what needs to be done to implement that plan.

Executive responsible for overseeing the financial operations of an organization. Also called finance director.

Taking actions that implement the planning decisions, deciding how to evaluate performance, and providing feedback and learning that will help future decision making.

The financial executive primarily responsible for management accounting and financial accounting. Also called chiefe accounting officer.

Measures, analyzes, and reports financial and nonfinancial information relating to the costs of acquiring or using resources in an organization. It provides information for both management accounting and financial accounting.

Approach to decision-making and resources allocation based on a comparison of the expected benefits from attaining company goals and the expected costs.

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

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

Providing after-sale support to customers.

The detailed planning and engineering of products and processes.

Delivering products or services to customers.

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

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

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

Measures, analyzes, and reports financial and nonfinancial information that helps managers make decisions to fulfill the goals of an organization. It focuses on internal reporting.

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

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

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

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

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

Describes cost management that specifically focuses on strategic issues.

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

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 the same organization or in other organizations.

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

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

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

Cost incurred (a historical or past cost), as distinguished from a budgeted or forcasted cost.

Cost computed by dividing total cost by the number of units. Also called unit cost.

Predicted or forecasted cost (future cost) as distinguished from an actual or historical cost.

All manufacturing costs other than direct material costs.

Resource sacrificed or forgone to achieve a specific objective.

Collection of cost data in some organized way by means of an accounting system.

Assignment of indirect costs to a particular cost object.

General term that encompasses both (1) tracing accumulated costs that have a direct relationship to a cost object and (2) allocating accumulated costs that have an indirect relationship to a cost object.

Variable, such as the level of activity or volume, that casually affects costs over a given time span.

Anything for which a measurement of costs is desired.

Cost of goods brought to completion, whether they were started before or during the current accounting period.

Describes the assignment of direct costs to a particular cost object.

Costs related to the particular cost object that can be traced to that object in an economically feasible (cost-effective) way.

Include the compensation of all manufacturing labor that can be traced to the cost object (work in process and then finished goods) in an economically feasible way.

Acquisition costs of all materials that eventually become part of the cost object (work in process and then finished goods), and that can be traced to the cost object in an economically feasible way.

Direct materials in stock and awaiting use in the manufacturing process.

All manufacturing costs that are related to the cost object (work in process and then finished goods) but that cannot be traced to that cost object in an economically feasible way. Also called manufacturing overhead costs and indirect manufacturing costs.

Goods completed but not yet sold

Cost that remains unchanged in total for a given time period, despite wide changes in the related level of total activity or volume.

Wages paid for unproductive time caused by lack of orders, machine breakdowns, material shortages, poor scheduling, and the like.

Costs related to the particular cost object that cannot be traced to that object in an economically feasible (cost-effective) way

All manufacturing costs that are related to the cost object (work in process and then finished goods) but cannot be traced to that cost object in an economically feasible way. Also called manufacturing overhead costs and factory overhead costs.

All costs of a product that are considered as assets in the balance sheet when they are incurred and that become cost of goods sold only when the product is sold

Companies that purchase materials and components and convert them into various finished goods.

Companies that purchase and then sell tangible products without changing their basic form.

Total revenues from operations minus cost of goods sold and operating (period) costs (excluding interest expense and income taxes)

Wage rate paid to workers (for both direct labor and indirect labor) in excess of their straight-time wage rates

All costs in the income statement other than cost of goods sold.

All direct manufacturing costs.

Sum of the costs assigned to a product for a specific purpose.

Band of normal activity level or volume in which there is a specific relationship between the level of activity or voume and the cost in question

Inflows of assets (usually cash or account receivable) received for products or services provided to customers

Companies that provide services or intangible products to their customers

Cost that changes in total in proportion to changes in the related level of total activity or volume

Goods partially worked on but not yet completed. Also called work in progress.