SCM - PRELIMS

management

process of achieving organization objectives. This involves planning, organizing, leading and controlling.

planning and controlling

two important functions of management

planning

setting goals and developing strategies and tactics to achieve them

controlling

determining whether goals are being met, and if not, what can be done.

performance evaluation

is a must in controlling

managers

they must review the accomplishments and compare with what is planned.

decision making

selecting one alternative from a set of choices

management accounting information

it is an information provided to internal users

management accountants

management accounting information are done by ____________

management accounting

indispensable part of the system that provides information to managers

managers

people whose decisions and actions determines the success or failure of the organization

strategic cost management

application of cost management techniques which aims to reduce costs while strengthening the strategic position of a business

can be applied in service, manufacturing, and not-for-profit organizations

management accounting

focuses on the information needs of an organization’s internal managers

financial accounting

field of accounting that develops information for external decision-makers such as stockholders, supplies, banks and government regulatory agencies.

balance sheet
statement of income
cash flow

primary financial accounting reports

cost accounting

field of accounting that creates and overlap between financial accounting and management accounting

financial accounting

cost accounting integrates with ______ by providing product costing information for financial statement

management accounting

cost accounting integrates with ______ by providing some of the quantitative, cost-based information managers need to perform their functions.

cost accounting

it focuses primarily on the determination of the cost of making products or performing services

cost accounting

determines the cost of products or services by direct, measurement, arbitrary assignment and systematic or rational allocation of such costs

cost-benefit analysis

analytical process of comparing the relative costs and benefits that results from a specific course of action

management accounting

• Internal users - as to users of information

• not required and unregulated

financial accounting

• external users - as to users of information

• required and must conform to GAAP

accounting system

formal mechanism for gathering, organizing and communicating information about an organization’s activities

quantitative information

this type of information allows managers to know the number impact of every alternative choice

qualitative infomation

furnishes the facts that help eliminate some of the inherent uncertainties related to such alternative choices

managers
accountants

______ are information users, while ____ are information providers

planning

process of translating the goals and objectives of an organization and developing a strategy for achieving those goals in a systematic manner

controlling

process of setting performance standards, measuring performance, periodically comparing actual performance with standards and taking corrective measures

performance evaluation

process of determining the degree of success in accomplishing the plan

effectiveness

how well an organization’s goals and objectives are achieved

efficiency

measure of the degree to which tasks were performed to produce the best yield at the lowest cost

decision making

process of choosing among the possible solutions available to a given problem situation

organizational structures

refers how authority as well as responsibility for making decisions is distributed in the organization

good organizational chart

a _____ must depict the flow of authority and responsibility

President/ceo

CFO normally reports to ______

treasurer & controller/chief accountant

CFO’s key subordinates

treasurer

direct responsibility for managing the firm’s cash and marketable securities, for planning its capital structures, also handles the credit and collection, inventory management and capital budgeting

controller

responsible for the activities of the accounting and tax departments

financial manager

primary task of ______ is to plan for the acquisition and use of funds so as to maximize the value of the firm, that is, he or she makes decisions about alternative sources and uses of funds

corporate governance

is a system of organizational control that is used to define and establish lines of responsibility and accountability among major participants in the corporation