Ch1 Introduction to Cost Accounting

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1. Authority Right of individual or team to use resources 24. Lead Indicators Projects future outcomes
for accomplishment
25. Learning and Uses intellectual capital to adapt to or
2. Balance Translates an organization's strategy into Growth change customer's needs and expectations
Scorecard clear and objective performance measures Perspective
(BSC)
26. Line Personnel works directly towards goals
3. CASB Cost Accounting Standards Board
27. Management Provides information to parties who, inside
4. Competence Individuals will develop and maintain the Accounting and organization, plan, control operations,
skills needed to practice their profession make decisions and evaluate performance
5. Confidentiality Refrain from disclosing info to inappropriate 28. Mission All organizations should have one and it
parties Statement should state the goals of the organization
6. Core Any critical function or activity where a firm 29. Organizational Reflects how authority and responsibility
Competency seeks higher proficiency than its Structure for decisions is distributed among
competitors. i.e. Apple- Innovative design personnel
and technology
30. Product Cost Consists of the sum of all factory costs
7. Cost Concerned with the determination and use
31. Product/Service Superior products or more/better services
Accounting of product or service costs
Differentiation than competitors
8. Cost ability to maintain competitive edge by
32. Responsibility Obligation to accomplish a task
Leadership undercutting competition's prices
33. Return on A ratio used to allocate resources and
9. Credibility providing full, fair, and timely disclosure of
Investment evaluate performance. Calculated by
relevant information
(ROI) Income/Total Assets
10. Customer How well is an organization doing in terms
34. SEC Securities and Exchange Commission
Value of customer criteria such as speed, quality,
Perspective service and price 35. Service Cost Consists of all costs towards providing a
service
11. Downstream marketing, distribution, and customer
Costs service 36. SMAs Statements on Management Accounting
written by IMA
12. Earnings Any accounting method or practice used to
Management adjust profit to meet a target 37. Staff Personnel gives assistance and advice to line
personnel
13. Environmental Any limitations caused by external cultural,
Constraint fiscal, legal/regulatory, or political 38. Strategy Plan for the firm's goal fulfillment that
situations should help the firm gain advantage over
competitors
14. FASB Financial Accounting Standards Board
39. Upstream Costs research, development, product design,
15. FCPA Foreign Corrupt Practices Act
and supply chain
16. Financial Addresses concerns of stockholders and
40. Value Chain A set of value adding functions or
Performance other stakeholders about profitability and
processes that convert inputs into
Perspective growth
products
17. GAAP Generally Accepted Accounting Principles
18. IASB International Accounting Standards Board
19. IMA Institute of Management Accountants
20. Integrity Not to participate in discreditable actions
21. Intellectual Intangible assets
Capital
22. Internal Focuses on what must be done well to
Business meet customer's needs
Perspective
23. Lag Indicators outcomes that resulted from past actions