ACCT 2300_midterm review summary

ACCT 2300_midterm review summary - ACCT 2300 Review for...

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Unformatted text preview: ACCT 2300 Review for Midterm CHAPTER 1 Differences between financial and managerial accounting In contrast to financial accounting, managerial accounting: (1) focuses on the needs of managers rather than outsiders; (2) emphasizes decisions affecting the future (is forward-looking) rather than the financial consequences of past actions (lag indicators); (3) emphasizes relevance rather than objectivity and verifiability; (4) emphasizes timeliness rather than precision; (5) emphasizes the segments of an organization rather than summary data concerning the entire organization; (6) is not governed by GAAP; and (7) is not mandatory. Role of the manager Planning – involves establishing a basic strategy, selecting a course of action, and specifying how the action will be implemented. Directing and motivating – involves mobilizing people to carry out plans and run routine operations. Controlling – involves ensuring that the plan is actually carried out and is appropriately modified as circumstances change. Definition of Strategy A strategy is a “game plan” that enables a company to attract customers by distinguishing itself from competitors. The focal point of a company’s strategy should be its target customers. A company can only succeed if it creates a reason for customers to choose it over a competitor. Role of the CFO The CFO is the member of the top management team who is responsible for providing timely and relevant data to support planning and control activities and for preparing financial statements for external users. Process Management A business process is a series of steps that are followed in order to carry out some task in a business. It is quite common for the linked set of steps comprising a business process to span departmental boundaries. The term value chain is often used when we form business processes. A value chain consists of the major business functions that add value to a company’s products and services. The customer’s needs are most effectively met by coordinating the business process that span these function. The six functions are: Research and Development, Product Design, Manufacturing, Marketing, Distribution and Customer Service. Lean Production The “old thinking” – In the past, manufacturing managers thought it was better and more efficient to keep people working and continually producing output. The goal was to reduce idleness , which they thought was a waste of money....
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This note was uploaded on 12/16/2009 for the course ACCT 116B 00138 taught by Professor Seymour during the Fall '09 term at Mesa CC.

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ACCT 2300_midterm review summary - ACCT 2300 Review for...

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