Card Set Information
What is the definition of accounting?
The process of identifying, measuring and communicating financial information about an entity.
What is the contingency approach?
Describes the process of creating a control system for a given set of purposes.
Control systems depend on
: The external environent of the business, the production technology, the size of the organization and the corporate strategy
What is strategic management accounting?
Identification, measurement and communication of cost data.
In situations, where the organization is being judged against the performance of competitors
What is the management functions?
eg. sales, producation capital expenditure
-Financial matters, particularly cost
-Impact on employees
-Impact on competitors
-Is and outcome in accordance with the initial plans and objectives?
-Plans include costs and profit
-Timely, relevant and accurate information
-Responsibility and authority
Functions of management accounting?
who should take action?, who is responsible?
Fairness and timeliness, responsibility, regognize achievements, demonstrate accountability
How much? how many?
Completeness and fairness (matching cost to itmes, time periods)
Why did that plan go well? Why did that action fail?
Base for understanding the problem