MAS The function of providing professional advisory (consulting) services.

-primary purpose is to improve the client’s use of its capabilities and resources.

Top level planning Also known as overall or strategic planning.

-encompasses the long-range objectives.
-concerned wtih corporate results rather than sectional objectives.

Business-level strategy Focuses on how to attain and satisfy customer, offer goods and services that meet
their needs.

Corporate-level Is when a business makes a decision that affects the whole company.
strategy

Operational strategies Methods companies use to reach their objectives.

PLANNING -Basic function of management.

-deals with chalking out a future course of action and deciding in advance the most
appropriate course of actions
-deciding on company goals and objectives and figures out how to achieve them.

ORGANIZING -Process of bringing together physical, financial, and human resources

-deciding on how to use company resources to put plans into actions.

STAFFING -Function of manning the organizaton structure.

DIRECTING Actuates the organizations methods to work efficiently

-overseeing the day-to-day activities

CONTROLLING -Implies measurement of accomplishment against the standards and correction of

deviation
-checking the performance of activities against the plan or standards set
-deciding what corrective actions to take

LINE POSITIONS -Those that have the responsibility and authority for achieving the major goals of
corporation
-those directly involved in the daily operations of a business
-is the authority to give orders
-exercises direct downward authority

Staff positions -Provide assistance and specialized advice and expertise to colleagues in line
positions.
-is the authority to advise but not to command others
-commonly exercised laterally or upward in an organization.

Cost leadership Increasing profits by reducing costs, while charging industry-average prices.
strategy

Differentiation strategy Making your products different from and more attrative than your competitors.

Focus strategy Concentrate on particular niche markets and, by understanding the dynamics of that
market and the unique needs of customers.

CONTROLLER -The chief management accounting executive

-responsible for the accounting aspect of management control and whose job
normally covers financial reporting, cost and management accounting, etc.
-staff position
FINANCIAL concerns the duties of the financial manager, who is responsible for making
MANAGEMENT significant corporate investment and financing decisions.

COMPETENCE -maintain an appropriate level of professional expertise by continually developing

knowledge and skills.
-perform their professional duties in accordance with relevant laws, regulations, and
technical standards.

CONFIDENTIALITY Keep information confedential except when disclosures is authorized or legally

required.

INTEGRITY Mitigate actual conflict of interest.

-refrain from engaging in any conduct that would prejuridce carryiong out duties
ethically.

CREDIBILITY -Communicate information fairly and objectively.

-disclose all relevant information that could reasonably be expected to influence an
intended user’s understanding of the reports, or recommendations.

COST Monetary measure of the amount of resources given up or used for some purpose

COST DRIVER Any variable, like level of activity or volume that usually affects costs over a period of
time.

COST POOL Grouping of individual cost items (ex. WIP, FOH)

PRODUCT COST Costs incurred to manufacture the product, therefore inventoriable.

PERIOD COSTS Non-manufacturing costs that include selling, administrative, and R&D.
-expense when incurred.

MANUFACTURING Costs incurred in the factory to convert raw materials into finished goods.
COSTS

NON-MANUFACTURI Costs which are not incurred in transforming materials to finished goods.
NG COSTS

DIRECT COSTS Costs that are related to a particular object and economically and effectively be
traced.

INDIRECT COST Cannot practically, economically, and effextive be trade.

COST ASSIGNMENT Done by allocations the indirect cost to the related cost objects.

RELEVANT COSTS Future costs that will differ under alternative courses of action.

DIFFERENTIAL Difference in costs between any two alternative courses of action.

COSTS

INCREMENTAL Increase in cost from one alternatice to anothet

COSTS

DECREMENTAL Decrease in cost from one alternative to another

COST

OPPORTUNITY Income or benefit given up when one alternative is selected over another.
COSTS

SUNK/PAST OR Already incurred and cannot be changed by any decision made now or to be made in
HISTORICAL COST the future.

STEP COST When activity changes, a step cost shifts upwards or downward by a certain interval
or step.

CVP ANALYSIS A systematic examination of the relationships among cost, cost driver, and profit.

BREAK-EVEN POINT The sales volume level (in peso and in units) where total revenues equals total costs,
that is, there is neither profit or loss.

MARGIN OF SAFETY The amount of peso-sales or the number of units by which actual or budgeted sales
may be decreased without resulting into a loss.

OPERATING The extent to which a company uses fixed costs in its cost structure.
LEVERAGE

LEVERAGE Achieved by increasing fixed costs while lowering variable costs.