Accounting II - Cost Accounting Chap. 1

is developed and used to implement the organization's strategy. It consists of financial information about costs and revenues and nonfinancial information about customer retention, productivity,quality and other key success factors for the organization.

The development and use of cost management information

A profession that involves partnering in management decision making, devising planning and performance management systems, and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization's strategy.

The development and implementation of a sustainable competitive position.

Involve budgeting and profit planning, cash flow management, and other decisions related to operations.

This takes place when mid-level managers monitor the activities of operating-level managers and employees.

the evaluation of mid-level managers by upper-level managers.

requires management to comply with the financial reporting requirements of regulatory agencies.

are measures of those aspects of the firm's performance that are esssential to its competitve advantage and, therefore, to its success.

an accounting report that includes the firm's critical success factors in four areas:
1) financial performance
2) customer satisfaction
3) internal processes
4) learning and growth

a method, based on the balanced scorecard, which links the four perspectives in a cause and effect diagram.

an analysis tool firms use to identify the specific steps required to provide a product or service to the customer

is used to develop a detailed desciption of the specific activities performed in the firm's operations.

is used to improve the accuracy of cost analysis by improving the tracing of costs to products or to individual customers

uses activity analysis and activity-based costing to help managers improve the value of products and services, and to increase the organizations competiveness.

an approach to strategy implementation in which the management accountant uses data to understand and analyze business performance.

determines the desired cost for a product on the basis of a given competitive price so that the product will earn a desired profit.

a method used to identify anf monitor the costs of a product throughout its life cycle.

a process by which a firm identifies it's critical success factors, studies the best practices of other firms (or other business units within a firm) for achieveing these critical success factors, and the implements improvements in the firm's processes to match or beat the performance of those competitors.

a management method by which managers and workers commit to a program of continous improvement in quality and other critical success factors.

a technique by which management develops policies and practices to ensure that the firm's products and services exceed customers expectations.

uses value streams to measure the financial benefits of a firms progress in implementing lean manufacturing

used to help firms effectively improve the rate at which raw materials are converted to finished products.

the balancing of the companies short- and long-term goals in all three dimensions of performance - social, environmental, and financial

a framework and process that firms use to manage the risks that could negatively or positively affect the company's competitiveness and success

a plan for using resources to achieve sustainable goals within a competitive environment

a strategy in which a firm outperforms competitors in producing products or services at the lowest cost

a competitive strategy in which a firm succeeds by developing and maintaining a unique value for the product or service as perceived by consumers