Flashcards
Management Accounting
Cards in this deck (44)
- 1Management AccountingAccounting carried out within a business for its own internal uses, to assist management and the business in making business decisions
- 2StakeholdersAll individuals and entities that have an interest in the activities of an organization: includes shareholders, financiers, employees, general public
- 3Cost and management accountingAccounting oriented towards the provision of information resources that mangers can use to run a business
- 4Hawthorne Effect (Ch. 2)Describes the phenomenon, commonly noted in psychological research, where peoples behavior changes when they are under observation as part of a research project
- 5Mechanical School (Ch. 2)In organization theory, has to do with those who treat the organization as a machine as opposed to the human relations school theory
- 6Human relations school (Ch. 2)This has to do with those who emphasize the role of people in an organization, as opposed to the mechanical school.
- 7Agency theory (Ch. 2)In the organizational context, this theory proposes a relationship between a principle (provider of funds) and the agent (person who manages those funds)
- 8Utility (Ch. 2)In an economic context, this is the measurement of consumption of goods and services. Agency theory assumes that all individuals want to maximize their utility, that is, their ability to consume.
- 9Theory X (Ch. 2)A model for human behavior by McGregor which proposes that people actively dislike working and therefore must be controlled and directed in order to get them to work.
- 10Theory Y (Ch. 2)Proposes that people are self-motivated, will accept responsibility, and do not need to be threatened or punished in order to work.
- 11Direct Costs (Ch. 3 Product and Service Costing)Costs directly associated with the manufacturing process
- 12Direct ExpensesDirect costs except direct materials and direct labor costs.
- 13Indirect costsThose costs that are not directly identifiable with a unit of production.
- 14Prime CostsThe total of all direct costs associated with manufacturing.
- 15Product CostThe costs related to the production of goods and services for sale by a business.
- 16Period CostsCosts incurred during the accounting period.
- 17Absorption CostingThe cost of products and services which include both direct and indirect costs of production.
- 18Job costingAn accumulation of costs relating to one identifiable job or task.
- 19Product costingAn accumulation of costs relating to the production of a large number of identifiable units.
- 20Batch costingthe accumulation of costs relating to a batch of identical products.
- 21Cost unitAn item of production or a group of products or a service for which it is useful to have product cost information.
- 22InventoryItems bought by a business to sell on to somebody else, or to process or transform in some way to make salable goods.
- 23Cost centersFunctions or areas into which costs can be organized.
- 24Overhead absorptionA method of allocating an appropriate portion of production overheads to cost units.
- 25Overhead Absorption RateA rate used to estimate the amount of production overhead incurred in manufacturing.
- 26ContributionThe amount that remains after deducting variable costs from sales revenue.
- 27New Public ManagementThe adoption of the public sector of accounting and management techniques that originated in the private sector.
- 28Perfect competition (Ch. 5 Pricing)A hypothetical economic condition where no player in a market has the power to change prices.
- 29CartelA price-fixing arrangement where a few major suppliers in a market agree between themselves to keep prices high.
- 30Price takerA supplier in a market with little or no influence over the level of prices charged for a product or service.
- 31Price setterAn influential supplier in a market with the power to influence the level of prices for a product or service.
- 32Loss leaderA product or service which is used to attract customer attention to a range of goods or to a particular supplier
- 33Price skimmingOccurs where high prices are changed in the early stages of the life of a new product.
- 34Marginal costing (Ch. 6: Marginal Costing and Decision-Making)An approach to costing which excludes fixed costs
- 35Sunk costA cost which is irrevelant to a decision, because it has already been incurred.
- 36Opportunity costIn decision making, the potential benefit that is given up when a particular course of action is ten in preference to an alternative.
- 37Variable costA cost which varies in proportion to the level of business activity
- 38Semi-variable costA cost which varies to some extent with the level of business activity; it has both fixed and variable elements.
- 39Marginal costThe cost of one additional unit
- 40Margin of safetythe excess of planned or actual sales above the break-even point.
- 41Relevant rangeIn decision making, the range of activity within which certain assumptions about cost behavior remain valid.
- 42Limiting factorsConstraints on the level of business activity
- 43Intellectual Capital (Ch. 11: Themes and Issues in Management Accounting)The resources available to an organization in the form of, for example, technical know how of employees and established relationships with other organizations.
- 44Strategic management AccountingThe role played by management accountants and management accounting in strategic decision making involving for example analysis of marketing and the business strategy of competitor organizations.
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- Flashcards on Management Accounting , created by Simon Hellberg-Z on 01/12/2015.
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- Simon Hellberg-Z
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