question

Is concerned with reporting financial information to external parties, such as stockholders, creditors and regulators

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Financial accounting

question

Is concerned with providing information to managers for use within the organization

answer

Managerial accounting

question

The main difference between financial and managerial accounting is that financial accounting reports to those _____ the organization while managerial accounting reports to those _____ the organization

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Outside, inside

question

Financial accounting is _____ while managerial accounting is not since it does not need to comply with externally imposed rules as the former does

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Mandatory

question

Are the three pillars of managerial accounting

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Planning, controlling, decision making

question

Involves establishing goals and specifying how to achieve them

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Planning

question

Involves gathering feedback to ensure that the plan is being properly executed or modified as circumstances change

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Controlling

question

Involves selecting a course of action from competing alternatives

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Decision making

question

The planning process is often accompanied by this, which is a detailed plan for the future that is usually expressed in quantitative terms

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Budget

question

Would also include evaluating the feedback of a certain event in search of ways to run a more effective one the following year/month

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Controlling

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The controlling process is often accompanied by this, which is a document that compares budgeted data to actual data in an effort to identify and learn from excellent performance and to identify and eliminate sources of unsatisfactory performance

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Performance report

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The most basic managerial skill; the ability to make intelligent, data-driven decisions

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Decision making

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_____ _____ process tries to answer the questions: _____ should we be selling?; _____ should we be serving?; and _____ should we be executing?

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Decision making, what, who, how

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Managerial accounting helps _____, _____, and _____ _____ _____ majors

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Marketing, accounting, human resource management

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Their primary role is to partner with their co-workers within the organization to improve performance

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Managerial accountants

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The public accounting profession has a strong _____ accounting orientation - this is not true for the private industry

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Financial

question

Focuses on the planning, controlling and decision-making skills that are critically important to nonpublic accounting employers

answer

CMA exam

question

The _____ industry is mostly concerned with financial accounting, whereas the _____ industry is mostly concerned with managerial accounting

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Public, private

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A "game plan" that enables a company to attract customers by distinguishing itself from competitors; most of them focus on targeting customers

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Strategy

question

When a company creates a reason for customers to choose it over a competitor, the essence of strategy

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Customer value proposition

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A company succeeds if its strategy creates _____ _____ _____

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Customer value proposition

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The three types of customer value propositions

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Customer intimacy, operational excellence, product leadership

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A type of customer value proposition in which a company creates value by arguing that they "should be chosen over competitors because they are able to customize products and services to meet individual needs better than competitors"

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Customer intimacy

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Examples of this type of customer value proposition include the Ritz Carlton, Nordstrom and premium travel agencies

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Customer intimacy

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A type of customer value proposition in which a company creates value by arguing that they "should be chosen over competitors because they deliver products and services faster, more conveniently and at a lower price than competitors"

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Operational excellence

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Examples of this type of customer value proposition include Southwest Airlines, Walmart and Google

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Operational excellence

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A type of customer value proposition in which a company creates value by arguing that they "should be chosen over competitors because they are able to offer higher quality products than their competitors"

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Product leadership

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Examples of this type of customer value proposition include Apple, Bmw, Cisco Systems, etc.

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Product leadership

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Is a process used by a company to identify those risks and develop responses to them that enable it to be reasonably assured of meeting its goals

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Enterprise risk management

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Enterprise risk management emphasizes that if _____ are not _____ correctly, they can harm a company's ability to meet goals

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Risks, managed

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A company can _____, _____ or _____ the risk it faces

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Accept, avoid, reduce

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The most common risk management tactic is to _____ risks by implementing specific controls

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Reduce

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Is a series of steps that are followed in order to carry out some task in a business, sometimes even spanning across departments

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Business process

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How an organization's functional departments interact with one another to form business processes, adding value to a company's products and services

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Value chain

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A management approach that organizes resources such as people and machines around the flow of business processes, that produces units in response to customer orders only

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Lean production

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Is another name for the lean production method, because products are only manufactured in response to customer orders and are completed to be shipped to them

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Just in time production (JIT)

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Because lean production only allows production in response to customer orders, the number of units _____ tends to equal the number of units _____, resulting in minimal _____, fewer _____, less wasted effort and quicker customer response

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Produced, sold, inventory, defects

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Anything that prevents you from getting more of what you want

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Constraint

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Is based on the insight that effectively managing the constraint is a key to success; says that we must determine the step that has the smallest capacity and have all improvement efforts focused on this constraint

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Theory of constraints

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Another term for constraint; is the step that must be determined and tackled in order to increase the strength of the chain (the business process) since it is the weakest link

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Bottleneck

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Are critical to a career in managerial accounting because organizations are managed by people, not by data or spreadsheets

answer

Leadership skills

question

Some of the leadership skills that are required are: (1) technical competence with area of _____ and _____ of the company's operations outside of this area; (2) having _____ _____ to make _____ decisions for yourself and others; (3) knowing how to implement _____ change even if its not the status quo; (4) having strong _____ skills (presentation and listening); (5) capable of _____ others and (6) effectively _____ team-based decision processes

answer

Expertise, knowledge, high integrity, ethical, organizational, communication, motivating, managing

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Describes in detail the ethical responsibility of management accountants

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Statement of ethical professional practice

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Has two parts: (1) provides general guidelines for ethical behavior (high levels of professional competence, confidentiality, personal integrity, credible disclosure of information) and (2) specifies what should be done if an individual finds evidence of ethical misconduct

answer

Statement of ethical professional practice

question

A concept whereby organizations consider the needs of all stakeholders when making decisions

answer

Corporate social responsibility

question

Are stakeholders whose interests are tied to the company's performance; they expect corporate social responsibility

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Customers, employees, suppliers, communities, environmental and human rights advocates

question

A company's _____ _____ performance can impact its _____ performance

answer

Corporate social, financial

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Is the system by which a company is directed and controlled

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Corporate governance

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Was intended to protect the interests of those who invest in publicly traded companies by improving the reliability and accuracy of corporate financial reports and disclosures

answer

Sarbanes Oxley Act

question

Is a process designed to provide reasonable assurance that objectives are being achieved

answer

Internal control

question

Deters undesirable events from ocurring

answer

Preventive control

question

Detects undesirable events that have already ocurred

answer

Detective control

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