Management Accounting And Decision Making at Universität Bremen | Flashcards & Summaries

Lernmaterialien für Management Accounting and Decision Making an der Universität Bremen

Greife auf kostenlose Karteikarten, Zusammenfassungen, Übungsaufgaben und Altklausuren für deinen Management Accounting and Decision Making Kurs an der Universität Bremen zu.

TESTE DEIN WISSEN

Activity-Based Management

Lösung anzeigen
TESTE DEIN WISSEN

▪ Activity-Based Management (ABM) is using the output of an
activity-based cost accounting system to aid strategic decision
making and to improve operational control
▪ A value-added cost is the cost of an activity that cannot be
eliminated without affecting a product’s value to the customer
▪ Nonvalue-added costs are costs that can be eliminated without
affecting a product’s value to the customer

▪ Benchmarking is the continuous process of comparing products,
services, and activities to the best industry standards
▪ Benchmarks can come from within the organization, from
competing organizations, or from other organizations having
similar processes

Lösung ausblenden
TESTE DEIN WISSEN

Decentralization

Lösung anzeigen
TESTE DEIN WISSEN

▪ The delegation of freedom to make decisions is called
decentralization.
▪ The process by which decision making is concentrated within a
particular location or group is called centralization.

Lösung ausblenden
TESTE DEIN WISSEN

Cost Behavior: Further Considerations

Lösung anzeigen
TESTE DEIN WISSEN

▪ Cost behavior depends on the decision context, the
circumstances surrounding the decision for which the cost will be
used.
▪ Cost behavior also depends on management decisions —
management choices determine cost behavior.


Lösung ausblenden
TESTE DEIN WISSEN

Unallocated Costs

Lösung anzeigen
TESTE DEIN WISSEN

▪ Some costs lack an identifiable relationship to a cost object; often
it is best to leave such costs unallocated
▪ An unallocated cost for one company may be an allocated cost or
even a direct cost for another
▪ These unallocated costs are recorded but not assigned to any
cost object

Lösung ausblenden
TESTE DEIN WISSEN

Investment Centers

Lösung anzeigen
TESTE DEIN WISSEN

▪ An investment center adds responsibility for investment to
profit-center responsibilities. Investment center success depends
on both income and invested capital, measured by relating
income generated to the value of the capital employed.

Lösung ausblenden
TESTE DEIN WISSEN

Six Sigma

Lösung anzeigen
TESTE DEIN WISSEN

▪ Six Sigma is a continuous process-improvement effort designed
to reduce costs by improving quality.
▪ It has broadened into a general process to define and measure a
process, analyze it, and improve it to minimize errors.

Lösung ausblenden
TESTE DEIN WISSEN

Management Accounting

Lösung anzeigen
TESTE DEIN WISSEN

Process of identifying, measuring, accumulating, analyzing,
preparing, interpreting, and communicating information
→Used by Managers

Lösung ausblenden
TESTE DEIN WISSEN

Adaption to changes

Lösung anzeigen
TESTE DEIN WISSEN

▪ Shifting from a manufacturing-based to a service-based economy
▪ Increased global competition
▪ Advances in technology
▪ Changes in business processes

▪ The service sector now accounts for more than (almost) 80%
(70%) of the employment in the United States (Germany).
▪ In major cities (New York City, London, Berlin) the service sector
accounts for approx. 90% of employment and GNP (Gross
National Product).
▪ Common characteristics of service organizations:
 Labor is a major component of costs.
 Output is usually difficult to measure.
 Service organizations cannot store their major inputs and outputs.

Lösung ausblenden
TESTE DEIN WISSEN

Cost Accounting System

Lösung anzeigen
TESTE DEIN WISSEN

Two Processes
▪ Cost accumulation:
Collecting costs by some “natural” classification such as materials or
labor
▪ Cost assignment:
Tracing costs to one or more cost objectives

Lösung ausblenden
TESTE DEIN WISSEN

Cost Allocation

Lösung anzeigen
TESTE DEIN WISSEN

▪ An ideal cost-allocation base would measure how much of the
particular cost is caused by the cost objective
▪ Note the similarity of this definition to that of a cost driver—an
output measure that causes costs; therefore, most allocation
bases are cost drivers
▪ Cost allocations support a company’s CMS that provides cost
measurements for strategic decision making, operational control,
and external reporting

Lösung ausblenden
TESTE DEIN WISSEN

Overview

Lösung anzeigen
TESTE DEIN WISSEN

▪ Accounting information is used in decision making for planning
and control.
▪ Planning describes how the organization will achieve its
objectives.
▪ Control is the process of implementing plans and evaluating if
objectives are achieved.

Lösung ausblenden
TESTE DEIN WISSEN

Cost-Based Transfer Prices (Variable-Cost)

Lösung anzeigen
TESTE DEIN WISSEN

▪ This transfer pricing system is most appropriate when the selling
division forgoes no opportunity when it transfers the item
internally.
▪ Variable-cost transfer prices cause dysfunctional decisions when
the selling segment has significant opportunity costs.

Lösung ausblenden
  • 25540 Karteikarten
  • 706 Studierende
  • 2 Lernmaterialien

Beispielhafte Karteikarten für deinen Management Accounting and Decision Making Kurs an der Universität Bremen - von Kommilitonen auf StudySmarter erstellt!

Q:

Activity-Based Management

A:

▪ Activity-Based Management (ABM) is using the output of an
activity-based cost accounting system to aid strategic decision
making and to improve operational control
▪ A value-added cost is the cost of an activity that cannot be
eliminated without affecting a product’s value to the customer
▪ Nonvalue-added costs are costs that can be eliminated without
affecting a product’s value to the customer

▪ Benchmarking is the continuous process of comparing products,
services, and activities to the best industry standards
▪ Benchmarks can come from within the organization, from
competing organizations, or from other organizations having
similar processes

Q:

Decentralization

A:

▪ The delegation of freedom to make decisions is called
decentralization.
▪ The process by which decision making is concentrated within a
particular location or group is called centralization.

Q:

Cost Behavior: Further Considerations

A:

▪ Cost behavior depends on the decision context, the
circumstances surrounding the decision for which the cost will be
used.
▪ Cost behavior also depends on management decisions —
management choices determine cost behavior.


Q:

Unallocated Costs

A:

▪ Some costs lack an identifiable relationship to a cost object; often
it is best to leave such costs unallocated
▪ An unallocated cost for one company may be an allocated cost or
even a direct cost for another
▪ These unallocated costs are recorded but not assigned to any
cost object

Q:

Investment Centers

A:

▪ An investment center adds responsibility for investment to
profit-center responsibilities. Investment center success depends
on both income and invested capital, measured by relating
income generated to the value of the capital employed.

Mehr Karteikarten anzeigen
Q:

Six Sigma

A:

▪ Six Sigma is a continuous process-improvement effort designed
to reduce costs by improving quality.
▪ It has broadened into a general process to define and measure a
process, analyze it, and improve it to minimize errors.

Q:

Management Accounting

A:

Process of identifying, measuring, accumulating, analyzing,
preparing, interpreting, and communicating information
→Used by Managers

Q:

Adaption to changes

A:

▪ Shifting from a manufacturing-based to a service-based economy
▪ Increased global competition
▪ Advances in technology
▪ Changes in business processes

▪ The service sector now accounts for more than (almost) 80%
(70%) of the employment in the United States (Germany).
▪ In major cities (New York City, London, Berlin) the service sector
accounts for approx. 90% of employment and GNP (Gross
National Product).
▪ Common characteristics of service organizations:
 Labor is a major component of costs.
 Output is usually difficult to measure.
 Service organizations cannot store their major inputs and outputs.

Q:

Cost Accounting System

A:

Two Processes
▪ Cost accumulation:
Collecting costs by some “natural” classification such as materials or
labor
▪ Cost assignment:
Tracing costs to one or more cost objectives

Q:

Cost Allocation

A:

▪ An ideal cost-allocation base would measure how much of the
particular cost is caused by the cost objective
▪ Note the similarity of this definition to that of a cost driver—an
output measure that causes costs; therefore, most allocation
bases are cost drivers
▪ Cost allocations support a company’s CMS that provides cost
measurements for strategic decision making, operational control,
and external reporting

Q:

Overview

A:

▪ Accounting information is used in decision making for planning
and control.
▪ Planning describes how the organization will achieve its
objectives.
▪ Control is the process of implementing plans and evaluating if
objectives are achieved.

Q:

Cost-Based Transfer Prices (Variable-Cost)

A:

▪ This transfer pricing system is most appropriate when the selling
division forgoes no opportunity when it transfers the item
internally.
▪ Variable-cost transfer prices cause dysfunctional decisions when
the selling segment has significant opportunity costs.

Management Accounting and Decision Making

Erstelle und finde Lernmaterialien auf StudySmarter.

Greife kostenlos auf tausende geteilte Karteikarten, Zusammenfassungen, Altklausuren und mehr zu.

Jetzt loslegen

Das sind die beliebtesten Management Accounting and Decision Making Kurse im gesamten StudySmarter Universum

Accounting for Decision Making

Griffith University

Zum Kurs
MM2: Management Accounting

Karlsruher Institut für Technologie

Zum Kurs
Cost Management Accounting

University of Johannesburg

Zum Kurs
Management Accounting

University of Fort Hare

Zum Kurs

Die all-in-one Lernapp für Studierende

Greife auf Millionen geteilter Lernmaterialien der StudySmarter Community zu
Kostenlos anmelden Management Accounting and Decision Making
Erstelle Karteikarten und Zusammenfassungen mit den StudySmarter Tools
Kostenlos loslegen Management Accounting and Decision Making