Final review Sheet

Final review Sheet - Definitions and Concepts 1. Core...

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Definitions and Concepts 1. Core competency: Management must also isolate the organization’s core competencies – its strengths relative to competitors. The organizational vision and the core competencies are closely related. The organization’s strengths should help shape the vision. The vision should help locate the organization’s strengths. 2. Management vs. financial accounting: Financial accounting prepares reports most frequently used by decision makers external to the organization. Managerial accounting prepares reports most frequently used by decision makers internal to the organization. 3. Relevant vs. irrelevant information: Sometimes nonlinear costs exhibit linear cost behavior over a range of the cost driver. This is the relevant range of activity. 4. Cost object is defined as anything or activity for which we measure costs 5. Direct costs are easily traced to the cost object. Indirect costs are not easily traced to the cost object, and must be allocated.
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Final review Sheet - Definitions and Concepts 1. Core...

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