ACC 306 Chapter Notes - Chapter 1: Enterprise Risk Management, Lean Accounting, Federal Trade Commission
Document Summary
Outlay cost: past, present, or future cash outflow. Opportunity cost: forgone benefit from best alternative course of action. Expense: cost charged against revenue in an accounting period. Specifies how an organization accomplishes its objectives by matching capabilities with opportunities. Describes how an organization competes in the marketplace (or deliver value to customers) Cost management information: consists of financial information about costs and revenues and nonfinancial information about customer retention, productivity, quality, and other key success factors for the organization. Cost management: the development and use of cost management information. Management accounting: a profession that involves: partnering management decision making, devising planning and performance management systems, providing expertise in financial reporting and control, to assist management in the formulation and implementation of an organization"s strategy. Cost management information is developed and used within the organization"s information value chain from stage 1 through 5: Stage 2: data: management accountants gather and summarize data.
