23 terms

Managerial Accounting 10th Edition ACC 519 Hilton/Platt

Walsh College Managerial Accounting 10th Edition by Hilton/Platt McGraw Hill ISBN 978-0-07-802566-2
activity accounting
The collection of financial or operational performance information about significant activities in an enterprise.
Activity-based costing (ABC)
A two-stage procedure used to assign overhead cost to products or services produced. Stage 1 -significant activities are identified, and overhead costs are assigned to activity cost pools in accordance with the way resources are consumed by the activities. 2nd stage, the overhead costs are allocated from each activity cost pool to each product line in proportion to the amount of the cost driver consumed by the product line.
Activity-based management (ABM)
Using an activity-based costing system to improve the operations of an organization.
attention -directing function
The function of managerial accounting information in pointing out to managers issues that need their attention.
balanced scorecard
A model of business performance evaluation that includes several types of financial and nonfinancial performance measures, typically comprising the following perspectives: financial, customer, internal business process, and learning and growth.
The upper limit on the amount of goods or services that an organization can produce in a specified period of time.
Certified Management Accountant (CMA)
An Accountant who has earned professional certification in managerial accounting
chief financial officer (CFO).
The executive responsible for all accounting and finance functions in an organization.
controller (or comptroller)
The top managerial and financial accountant in an organization. Supervises the accounting department and assists management at all levels in interpreting and using managerial accounting information.
cost accounting system
Part of the core accounting system that accumulates data about the costs of producing goods and services for use in both managerial and financial accounting.
cost driver
A characteristic of an activity or event that results in the incurrence of costs by that activity or event
cost management system
A management planning and controlling system that measures the cost of significant activities identifies non-value-added costs, and identifies activities that will improve organizational performance.
financial accounting
The use of accounting information for reporting to parties outside the organization.
internal auditor
An accountant who reviews the accounting procedures, records, and reports in both the controller's and treasurer's areas of responsibility .
line positions
Positions held by managers who are directly involved in providing the goods or services that constitute an organization's primary goals.
managerial accountants
Specialist in using the tools of managerial accounting to help the organization and its managers operate effectively.
managerial accounting
The process of identifying, measuring, analyzing, interpreting, and communicating information in pursuit of an organization's goals.
non-value-added costs
The cost of activities that can be eliminated without deterioration of product quality, performance, or perceived value.
practical capacity
The upper limit on the amount of goods or services that an organization can produce in a specified period of time, allowing for normal occurrences such as machine down time and employee fatigue or illness.
staff positions
Positions held by managers who are only indirectly involved in producing an organization's product or service.
strategic cost management
Overall recognition of the cost relationship among the activities in the value chain, and the process of managing those cost relationships to a firm's advantage.
An accountant in a staff position who is responsible for managing an organization's relationship with investors and creditors and maintaining custody of the organization's cash, investments, and other assets.
value chain
An organization's set of linked, value-creating activities, ranging from securing basic raw materials and energy to the ultimate delivery of products and services.