Managerial
Managerial Accounting Acco unting
Study Guide
Study this set o nline at: https://www.cram.co m/flashcards/managerial-acco unting-
10886050
I nf ormati on System System i ncl udes mul ti pl e f ormal and i nf ormal records and systems
Serves 2 purposes-provi de i nf ormati on/ knowl edge f or deci si on-maki ngand to
moti vate/ moni tor peopl e f or control purposes.
I nternal Accounti ng System -Owners of an organi zati on want to maxi mi ze val ue/ prof i ts whereas I ND /MNG
wi sh to maxi mi zethei r sel f i nterest.
-the key to al l i gn the two (org and managers) by provi di ng i ncenti ves
Manageri al deci si on maki ng Strati gi c pl anni ng, cost reducti on, f i nanci al management
Perf ormance measures and i ncenti ves, promoti ons demoti ons, termi nati ons, securi ty
Control systems
guards, and cameras, i nternal audi tors, and the i nternal accounti ng system.
Accountants are charged wi th desi gni ng, i mprovi ng, and operati ng theorgani zati on's
accounti ng system
*Accountants devel op both i nternal and external f i nanci al reports
D esi gn and use of cost system * T he i nternal accounti ng system provi des reports/data f or day to day deci si on
maki ng
*T he i nternal accounti ng system al so provi des reports/data f or external reporti ng on
a quarterl y and /or annual basi s
*Most organi zati ons use a si ngl e accounti ng system f or i nternal and external
f i nanci al reporti ng but managers of ten need addi ti onal reports/data f or day-to-
day deci si on-maki ng and theref ore create addi ti onal systems
I f the current practi ces are worki ng, then there i s no need to f i x them-
E conomi c D arwi ni sm
Organi zati ons wi l l of ten uti l i ze best practi ces
A process of conti nuousl y compari ng and measuri ng an organi zati ons busi ness
Benchmarki ng
resul ts agai nst other organi zati ons wi thi n the same i ndustry
Oversees f i nanci al and manageri al accounti ng f uncti ons (i ncl udes control l ers
Chi ef F i nanci al Of f i cer (CF O)
hi p,treasury, and i nternal audi t)
, Managerial
Managerial Accounting Acco unting
Study Guide
Study this set o nline at: https://www.cram.co m/flashcards/managerial-acco unting-
10886050
Oversees tax, f i nanci al reporti ng, and manageri al / cost accounti ng
Control l er * E ach operati ng di vi si on wi l l general l y have i ts own Control l er reporti ng to a
operati ng D i vi si on VP or to the Corporate Control l er.
I nvol ves f i nanci ng, banki ng, credi t, col l ecti ons, i nvestments, i nsurance, and capi tal
T reasury
budgeti ng
Manageri al / Cost accountants Report to a Control l er
Organi zati ons must compl y wi th government regul ati ons
Regul ati ons * Manageri al accountants assi st by provi di ng data f or compl i ance wi th government
regul ati ons
General l y deal s wi th f i nanci al statement f raud and code of ethi cs/ corporate
Sarbanes-Oxl ey Act of 2002 (SOX)the nature of costs
governance
T hi s i s a type of cost behavi or where costs/ expendi tures are f i xed over a range of
Step costs
output/ producti on and may i ncrease when output/ producti on hi ts a certai n l evel
When a cost i ncurred i s not 100% f i xed costor 100% vari abl e cost. E l ectri ci ty
Mi xed or semi -vari abl e costscost
may be a mi xed or semi vari abl e cost
Cost dri vers are measurements of physi cal acti vi ti es that are hi ghl y associ ated
Cost dri ver
wi th vari ati ons i n cost.
Managerial Accounting Acco unting
Study Guide
Study this set o nline at: https://www.cram.co m/flashcards/managerial-acco unting-
10886050
I nf ormati on System System i ncl udes mul ti pl e f ormal and i nf ormal records and systems
Serves 2 purposes-provi de i nf ormati on/ knowl edge f or deci si on-maki ngand to
moti vate/ moni tor peopl e f or control purposes.
I nternal Accounti ng System -Owners of an organi zati on want to maxi mi ze val ue/ prof i ts whereas I ND /MNG
wi sh to maxi mi zethei r sel f i nterest.
-the key to al l i gn the two (org and managers) by provi di ng i ncenti ves
Manageri al deci si on maki ng Strati gi c pl anni ng, cost reducti on, f i nanci al management
Perf ormance measures and i ncenti ves, promoti ons demoti ons, termi nati ons, securi ty
Control systems
guards, and cameras, i nternal audi tors, and the i nternal accounti ng system.
Accountants are charged wi th desi gni ng, i mprovi ng, and operati ng theorgani zati on's
accounti ng system
*Accountants devel op both i nternal and external f i nanci al reports
D esi gn and use of cost system * T he i nternal accounti ng system provi des reports/data f or day to day deci si on
maki ng
*T he i nternal accounti ng system al so provi des reports/data f or external reporti ng on
a quarterl y and /or annual basi s
*Most organi zati ons use a si ngl e accounti ng system f or i nternal and external
f i nanci al reporti ng but managers of ten need addi ti onal reports/data f or day-to-
day deci si on-maki ng and theref ore create addi ti onal systems
I f the current practi ces are worki ng, then there i s no need to f i x them-
E conomi c D arwi ni sm
Organi zati ons wi l l of ten uti l i ze best practi ces
A process of conti nuousl y compari ng and measuri ng an organi zati ons busi ness
Benchmarki ng
resul ts agai nst other organi zati ons wi thi n the same i ndustry
Oversees f i nanci al and manageri al accounti ng f uncti ons (i ncl udes control l ers
Chi ef F i nanci al Of f i cer (CF O)
hi p,treasury, and i nternal audi t)
, Managerial
Managerial Accounting Acco unting
Study Guide
Study this set o nline at: https://www.cram.co m/flashcards/managerial-acco unting-
10886050
Oversees tax, f i nanci al reporti ng, and manageri al / cost accounti ng
Control l er * E ach operati ng di vi si on wi l l general l y have i ts own Control l er reporti ng to a
operati ng D i vi si on VP or to the Corporate Control l er.
I nvol ves f i nanci ng, banki ng, credi t, col l ecti ons, i nvestments, i nsurance, and capi tal
T reasury
budgeti ng
Manageri al / Cost accountants Report to a Control l er
Organi zati ons must compl y wi th government regul ati ons
Regul ati ons * Manageri al accountants assi st by provi di ng data f or compl i ance wi th government
regul ati ons
General l y deal s wi th f i nanci al statement f raud and code of ethi cs/ corporate
Sarbanes-Oxl ey Act of 2002 (SOX)the nature of costs
governance
T hi s i s a type of cost behavi or where costs/ expendi tures are f i xed over a range of
Step costs
output/ producti on and may i ncrease when output/ producti on hi ts a certai n l evel
When a cost i ncurred i s not 100% f i xed costor 100% vari abl e cost. E l ectri ci ty
Mi xed or semi -vari abl e costscost
may be a mi xed or semi vari abl e cost
Cost dri vers are measurements of physi cal acti vi ti es that are hi ghl y associ ated
Cost dri ver
wi th vari ati ons i n cost.
