Management Accounting Key Terms

Topics: Management accounting, Costs, Cost accounting Pages: 5 (766 words) Published: January 31, 2015
1- Management Accounting in Context

Budget
Quantitative expression of a proposed plan of action by management for a specified period and an aid to coordinating what needs to be done to implement that plan Chartered Institute of Management Accountants

International professional body of management accountants with members in 165 countries, including Australia Chief Financial Officer
Executive responsible for overseeing the financial operations of an organisation. Also called financial director Control
Taking actions that implement the planning decisions, deciding how to evaluate performance, and providing feedback and learning that will help future decision making Cost Accounting
Measures, analyses and reports financial and non-financial information relating to the costs of acquiring or using resources in an organisation. It provides information for both management accounting and financial accounting Cost Management

The approaches and activities of managers to use resources to increase value to customers and to achieve organisational goals Cost-Benefit Approach
Approach to decision making and resource allocation based on a comparison of the expected benefits from attaining company goals and the expected costs Customer Service
Providing after-sales support to customers
Design of products, services of processes
The detailed planning and engineering of products, services or processes. Distribution
Delivering products or services to customers
Financial accounting
Measures and records business transactions and provides financial statements that are based on generally accepted accounting principles. It focuses on reporting to external parties, such as investors and banks Financial director

Chief financial officer
Learning
Involves managers examining past performance and systematically exploring alternative ways to make better informed decisions and plans in the future Line management
Managers (e.g. in production, marketing or distribution) who are directly responsible for attaining the goals of the organisation Management accountant
Accountant who works closely with managers in formulating strategy by providing information about the sources of competitive advantages Management accounting
Measures, analyses and reports financial and non-financial information that helps managers make decisions to fulfil the goals of an organisation. It focuses on internal reporting Marketing
Promoting and selling products or services to customers or prospective customers Planning
Selecting organisation goals, predicting results under various alternative ways of achieving those goals, deciding how to attain the desired goals, and communicating the goals and how to attain them to the entire organisation Production

Acquiring, coordinating and assembling resources to produce a product or deliver a service Research and development
Generating and experimenting with ideas related to new products, services or processes Staff management
Staff (e.g. management accountants and human resources managers) who provide advice and assistance to line management Strategic cost management
Describes cost management that specifically focuses on strategic issues Strategy
Specifies how an organisation matches its own capabilities with the opportunities in the marketplace to accomplish its objectives Supply chain
Describes the flow of goods, services and information from the initial sources of materials and services to the delivery of products to consumers, regardless of whether those activities occur in the same organisation or in other organisations Sustainability

The recognition of intergenerational and intergenerational equity, whereby meeting the needs of a particular individual or group in the present should not compromise the ability of other individuals or groups, either now or in the future, to meet their needs Value chain

The sequence of business functions in which customer usefulness is added to products or services...
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