Mba 613

Chapter 1

Budget: the quantitative expression of a proposed plan of action by management and is an aid to coordinating what needs to be done to execute that plan. P.10

Chief Financial Officer (CFO): also called the finance director, is the executive responsible for overseeing the financial operations of an organization. P. 13

Control: comprises taking actions that implement the planning decisions, deciding how to evaluate performance, and providing feedback and learning to help future decision making. p.10

Controller: also called the Chief Accounting Officer, is the financial executive primarily responsible for management accounting and financial accounting. P.13

Cost accounting: measures, analyzes, and reports financial and non financial info relating to the cost of acquiring or using resources in an organization. P.4

Cost-benefit approach: resources should be spent if the expected benefits to the company exceed the expected costs. P.12

Cost management: no uniform definition. See page 4

Customer service: providing after-sales service to customers. Sony provides customer service on its televisions in the form of customer-help phone lines, support on the internet, and warranty repair work. P.6

Design of products and processes: detailed planning, engineering, and testing of products and processes. P.6

Distribution: processing orders and shopping products of services to customers (also called outbound logistics)

Finance director: see chief financial officer (CFO) p. 13

Financial Accounting: focuses on reporting to external parties such as investors, govt agencies, banks, and suppliers. P. 3

Learning: examining the past performance (control function) and systematically exploring alternative ways to make better-informed decisions and plans in the future. P.10

Line management: such as production, marketing, and distribution management, is directly responsible for attaining the goals of the organization. P13
Management accounting: measures, analyzes, and reports financial and nonfinancial info that helps managers make decision to fulfill the goals of an organization. P.4

Marketing: (including sales) promoting and selling products or services to customers or prospective customers. P.6

Planning: comprises selecting organization goals and strategies, predicting results under various alternative ways of achieving those goals and strategies, predicting results under various alternative ways of achieving those goals,