Cost Accounting’s Changing Emphasis

Governmental accounting is non-accrual accounting used to account for governmental agencies, and nonprofitseeking organizations such as state universities. It is completely different from the material studied in financial and managerial accounting courses and isalso outside the scope of this textbook.

THE DUAL PURPOSE OF ACCOUNTING MEASUREMENTS

Selling and Administrative Costs

Semi-Variable and Semi-Fixed Costs

Professional ethics Part 2 covers Financial Decision Making:
Financial statement analysis
Corporate finance
Decision analysis and risk management
Investment decisions
Professional ethics

UNDERLYING CONCEPTS, CHARACTERISTICS AND ASSUMPTIONS

Part 1 covers Financial Planning, Performance and Control:
Planning, budgeting, and forecasting
Performance management
Cost management
Internal controls

How to Optimize the Performance of a System

7. How does cost accounting differ from ?

3. Conceptually, the difference between cost management and activitymanagement is that
a. cost management is proactive and activity management is reactive.
b. cost management places emphasis on costs while activity management places emphasis on the work that causes the costs.
c. cost management is designed for external users while activity managementis designed for internal use.
d. a and b.
e. all of these.

8. What is the conceptual difference between cost management and?

2. The broad conceptual definition of management accounting presented in thetext excludes
a. public accounting.
b. financial accounting.
c. governmental accounting.
d. a and c.
e. all of the above.

9. How is more comprehensive than capital budgeting?

1. Which of the following represents part of Management Accounting?
a. Financial Accounting.
b. Tax Accounting.
c. Cost Accounting.
d. Managerial Accounting.
e. All of the above.

MAJOR BUSINESS CONCEPTS, ATTITUDES AND PRACTICES

Hierarchy of Organization’s Constituencies

Although bookkeeping can be traced back to the thirteenth century, accounting historians place the origin of managementaccounting around 1812. Around this time, textile mills began to perform many processes inside the organization that had previously been performed outside thecompany by independent craftsmen.

Management’s Attitude Towards Teamwork

Management’s Behavior In Economic Downturn

14. Based on your experience, what percentage of the variation in grades inschool is caused by the system (broadly defined as economic, social andeducational) as opposed to the individual efforts of students? Do you thinkfaculty and administrators would agree with your percentages? Why?

Management’s Attitude Toward Problems

PLACEMENT WITHIN THE LARGER ECONOMIC SYSTEM

5. In cost accounting, costs are classified as variable costs if they
a. change during the accounting period.
b. change as the activity level changes.
c. are indirect costs.
d. are not related to the activity measurement.
e. none of these.