What are the main disadvantages of an it systemover a manual system?
Segregation of duties - IT - incompatible duties are often combined
Disappearing audit trail in IT - need for audit tests throughout the year
Computer initiated transactions are not
What is ERP's primary benefit?
It can eliminate stand alone systems that do not share information easily for management's use.
The major reporting standard for presenting managerial accounting information is? 1.generally
accepted accounting principles
Manufacturing Costs = PRODUCT COSTS
activities and processes that convert raw materials into finished goods.
Non-manufacturing Costs = PERIOD COSTS
costs that are matched with the revenue of a speci
3 Major Activities of a Manager
Directing and Motivating
Definition: Involves establishing a basic strategy, selecting a course of action, and specifying how
the action will be implemented
An important part of plannin
accounting area focused on providing information to assist business owner and managers in making
costs that can be directly traced or attributed to a specific cost object
provision of accounting information for a company's internal users of information; goal is to help
managers carry out duties
setting objectives and identifying ways to achieve the objectives
monitoring a pl
activity-based costing (ABC)
a method of allocating overhead based on each product's use of activities in making the product.
a performance-measurement approach that uses both financial and nonfinancial measures, tied to
Types of Accounting (2)
Managerial Accounting and Financial Accounting
Details of Managerial Accounting
Reports are Internal and Generated As Needed, Highly Detailed
Details of Financial Accounting
Reports are both Internal & External, Generated on a
What's definition of Cost ?
The amount of cash or cash equivalent sacrificed for goods and/or services that are expected to
bring a current or future benefit to the organization.
What's definition of Expenses ?
Expired costs are called expenses.
on the schedule of CGM, CGM figure represents
the cost of goods completed during the current period
financial and managerial accounting are similar in that both
us info provided by the internal accounting system
type of company that se