AFM102 Lecture Notes - Lecture 1: Groupthink, Value Chain, Lean Manufacturing

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM102
• Professor: Catherine Wong

Document Summary

Financial accounting provide information to shareholders, creditors, and other stakeholders outside the organization. Find out why performance exceeded or failed to meet expectations. Accounting (financial and operating data: recording, estimating, organizing. Managerial accounting: reports to those outside the organization, reports to those inside the organization for, owners, creditors, tax authorities, regulators. Financial consequences of past events: objectivity and verifiability, precision. Securities regulators and tax authorities require this information opposed to waiting for a precise answer: more importance on non-finance data, such as customer satisfaction, detailed segment reports about departments, products, and customers. Lean production a management approach that organizes resources such as people and machines around the flow of business processes: produces units only in response to customer orders. Identify risks before they occur, such as weather, hackers, law, theft, etc: the company responds to risks by accepting, avoiding, sharing, or reducing the risk. Implement specific control: can not guarantee that all risks are eliminated.