AFM123 Chapter Notes - Chapter 1: Management Accounting, Business Process, Total Quality Management

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM123
• Professor: Peter Blake

Document Summary

Merchandising: retail and wholesale outlets that buy goods from suppliers and resell them to customers. Strategy: general direction in which an org plans to move to achieve its goal. Planning: selecting a course of action and specifying how the action will be implemented. Management must balance opportunities against demands made on company"s resources. Budgeting: prepared annually and represent management plans in speciic, quantitative terms. Implement (action oriented): carry out day-to-day activities, making decisions, organise and allocate resources, manage employees. Control: process of instituting procedures and obtaining feedback to ensure that all parts of the org are functioning efectively and moving towards goal. Feedback: signals whether the company is on task. Performance report: compares budgeted results with actual results, suggest areas that need improvements. Planning, implementation and control cycle on page 7. Managerial accounting system provides key info to managers to aid them in the cycle. The info is used primarily within the org.