Management Accounting

Pregunta	Respuesta
Management Accounting	Accounting carried out within a business for its own internal uses, to assist management and the business in making business decisions
Stakeholders	All individuals and entities that have an interest in the activities of an organization: includes shareholders, financiers, employees, general public
Cost and management accounting	Accounting oriented towards the provision of information resources that mangers can use to run a business
Hawthorne Effect (Ch. 2)	Describes the phenomenon, commonly noted in psychological research, where peoples behavior changes when they are under observation as part of a research project
Mechanical School (Ch. 2)	In organization theory, has to do with those who treat the organization as a machine as opposed to the human relations school theory
Human relations school (Ch. 2)	This has to do with those who emphasize the role of people in an organization, as opposed to the mechanical school.
Agency theory (Ch. 2)	In the organizational context, this theory proposes a relationship between a principle (provider of funds) and the agent (person who manages those funds)
Utility (Ch. 2)	In an economic context, this is the measurement of consumption of goods and services. Agency theory assumes that all individuals want to maximize their utility, that is, their ability to consume.
Theory X (Ch. 2)	A model for human behavior by McGregor which proposes that people actively dislike working and therefore must be controlled and directed in order to get them to work.
Theory Y (Ch. 2)	Proposes that people are self-motivated, will accept responsibility, and do not need to be threatened or punished in order to work.
Direct Costs (Ch. 3 Product and Service Costing)	Costs directly associated with the manufacturing process
Direct Expenses	Direct costs except direct materials and direct labor costs.
Indirect costs	Those costs that are not directly identifiable with a unit of production.
Prime Costs	The total of all direct costs associated with manufacturing.
Product Cost	The costs related to the production of goods and services for sale by a business.
Period Costs	Costs incurred during the accounting period.
Absorption Costing	The cost of products and services which include both direct and indirect costs of production.
Job costing	An accumulation of costs relating to one identifiable job or task.
Product costing	An accumulation of costs relating to the production of a large number of identifiable units.
Batch costing	the accumulation of costs relating to a batch of identical products.
Cost unit	An item of production or a group of products or a service for which it is useful to have product cost information.
Inventory	Items bought by a business to sell on to somebody else, or to process or transform in some way to make salable goods.
Cost centers	Functions or areas into which costs can be organized.
Overhead absorption	A method of allocating an appropriate portion of production overheads to cost units.
Overhead Absorption Rate	A rate used to estimate the amount of production overhead incurred in manufacturing.
Contribution	The amount that remains after deducting variable costs from sales revenue.
New Public Management	The adoption of the public sector of accounting and management techniques that originated in the private sector.
Perfect competition (Ch. 5 Pricing)	A hypothetical economic condition where no player in a market has the power to change prices.
Cartel	A price-fixing arrangement where a few major suppliers in a market agree between themselves to keep prices high.
Price taker	A supplier in a market with little or no influence over the level of prices charged for a product or service.
Price setter	An influential supplier in a market with the power to influence the level of prices for a product or service.
Loss leader	A product or service which is used to attract customer attention to a range of goods or to a particular supplier
Price skimming	Occurs where high prices are changed in the early stages of the life of a new product.
Marginal costing (Ch. 6: Marginal Costing and Decision-Making)	An approach to costing which excludes fixed costs
Sunk cost	A cost which is irrevelant to a decision, because it has already been incurred.
Opportunity cost	In decision making, the potential benefit that is given up when a particular course of action is ten in preference to an alternative.
Variable cost	A cost which varies in proportion to the level of business activity
Semi-variable cost	A cost which varies to some extent with the level of business activity; it has both fixed and variable elements.
Marginal cost	The cost of one additional unit
Margin of safety	the excess of planned or actual sales above the break-even point.
Relevant range	In decision making, the range of activity within which certain assumptions about cost behavior remain valid.
Limiting factors	Constraints on the level of business activity
Intellectual Capital (Ch. 11: Themes and Issues in Management Accounting)	The resources available to an organization in the form of, for example, technical know how of employees and established relationships with other organizations.
Strategic management Accounting	The role played by management accountants and management accounting in strategic decision making involving for example analysis of marketing and the business strategy of competitor organizations.

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	Creado por Simon Hellberg-Z hace casi 9 años