Senior Exam exam Management

Continuity (going- concern) assumption

Entity will continue to exist indefinitely

production and cost

the action of making or manufacturing from components or raw materials, or the process of being so manufactured. the amount or equivalent paid or charged for something

Entrepreneurship

the activity of setting up a business or businesses, taking on financial risks in the hope of profit.

dispersion

the extent to which values of a variable differ from a fixed value such as the mean.

central tendency

arithmetic mean, the median and the mode.

Comparability

- ability to compare financial information across firms.

Disclosure Principle

- all material information needed by decision-makers should be included in the financials or in the notes

Entity Assumption

A business is a separate economic unit no matter how it is legally organized

policy determination

A decision that, at least in part, is based not on objective facts but on the decision maker's subjective values and judgments.

Market Failure and role of government

An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers does not equate to the quantity supplied by suppliers.

Measurements of economic performance

Economic growth - real GDP growth. Inflation - e.g. target CPI inflation of 2% Unemployment - target of full employment Current account - satisfactory current account, e.g. low deficit

Cost Concepts

Fixed, variable, and mixed costs. By-product costs. Allocated costs. Discretionary costs. Step costs

Time Series Forecasting

Making predictions about the future is called extrapolation in the classical statistical handling of time series data.

Functions of management

Planning means defining performance goals for the organization and determining what actions and resources are needed to achieve the goals. organizing function involves deciding how the organization will be structured Leading Controling

strategic analysis

The process of developing strategy for a business by researching the business and the environment in which it operates.

economic systems

Traditional economic system is the most traditional and ancient types of economies in the world. Vast portions of the world still function under a traditional economic system. In a command economic system, a large part of the economic system is controlled by a centralized power. free market economy, firms and households act in self-interest to determine how resources get allocated, what goods get produced and who buys the goods. A mixed economy is a combination of different types of economic systems.

regression

a measure of the relation between the mean value of one variable (e.g., output) and corresponding values of other variables (e.g., time and cost).

correlation

a quantity measuring the extent of interdependence of variable quantities.

Total Quality Management

a system of management based on the principle that every staff member must be committed to maintaining high standards of work in every aspect of a company's operations.

Consistency Principle

ability to compare financial information across years for a single firm

the stable-monetary-unit assumption

accountants assume that the dollar's purchasing power is stable over time. ($1 five years ago has the same value as $1 this year) nm,mn m,n poihyjukojh

Cost-volume-profit (CVP)

analysis is used to determine how changes in costs and volume affect a company's operating income and net income.

Historical cost principle

assets should be recorded at their actual cost, measured on the date of purchase as the amount of cash paid plus the dollar value of all non-cash consideration (other assets, privileges, or rights) also given in exchange.

Theory and history of management

bureaucratic theory- Weber focused on dividing organizations into hierarchies, establishing strong lines of authority and control. Frederick Taylor developed the :scientific management theory" which espoused this careful specification and measurement of all organizational tasks Human relations movement- unions

monetary policy

consists of the actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply,

production market structure

descriptive organizational term for discussing the economics of the market and other characteristics of a market.

Understandability

enables users to perceive the significance and transparency of information.

Faithful Representation

information should be verifyable

cross culture management

involves managing work teams in ways that considers the differences in cultures, practices and preferences of consumers in a global or international business context.

A nonroutine decision

is a choice made to deal with a non-repetitive, tactical situation. These decisions typically involve situations that fall outside of the normal operating procedures of a business.

Activity Based Costing ABC

is a costing methodology that identifies activities in an organization and assigns the cost of each activity with resources to all products and services according to the actual consumption by each.

production possibility frontier (PPF)

is a curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors. The PPF assumes that all inputs are used efficiently.

Financial accounting

is a specialized branch of accounting that keeps track of a company's financial transactions. Using standardized guidelines, the transactions are recorded, summarized, and presented in a financial report or financial statement such as an income statement or a balance sheet.

models of consumer choice

is an individual-level response model that helps to analyze and explain the choices individual customers make in the market. The Customer Choice model helps firms to understand the extent to which such factors as price of a brand or its ease of installation influence a customer's choice of a brand.

Product costing system

is the accounting process of determining all business expenses pertaining the creation of company products. These costs can include raw material purchases, worker wages, production transportation costs and retail stocking fees.

Scarcity

is the fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources. It states that society has insufficient productive resources to fulfill all human wants and needs.

Standard costing

is the practice of substituting an expected cost for an actual cost in the accounting records, and then periodically recording variances showing the difference between the expected and actual costs.

resource markets

market where a business can go and purchase resources to produce goods and services

Principles of management

means by which you actually manage, that is, get things done through others—individually, in groups, or in organizations.

Statistical quality control

refers to the use of statistical methods in the monitoring and maintaining of the quality of products and services.

operation execution

s a suite of manufacturing systems designed to execute operations tasks, such as production, maintenance or inventory tracking

Relevance

should be able to make a decision based on accountant information provided

joint probabilities

statistical measure where the likelihood of two events occurring together and at the same point in time are calculated.

Comparative advantage

the ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity.

Supply and demand

the amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.

opportunity cost

the loss of potential gain from other alternatives when one alternative is chosen.

macroeconmics

the part of economics concerned with large-scale or general economic factors, such as interest rates and national productivity.

microeconomics

the part of economics concerned with single factors and the effects of individual decisions.

conditional probabilities

the probability of an event ( A ), given that another ( B ) has already occurred.

Managerial accounting

the provision of financial data and advice to a company for use in the organization and development of its business.

fiscal policy

the use of government revenue collection

Aggregate demand and supply

total demand for final goods and services in an economy at a given time. the total supply of goods and services available to a particular market from producers.

Reliability ("The Reliability Principle")

verifiable, free from bias, representational faithfulness, objective information. relevance and reliability may be in conflict