Finals Notes (for portability)|
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IRC Nickname: Wayne|Eregion2 Group: Emeritus Posts: 3087 Member No.: 156 Joined: January 25, 2008 Total Events Attended: 8    | You can delete these or w/e after May 14th, I just need to organize all this somehow. 
Chapter 7: Databases and Data Warehouses.
Learning Objectives:- Explain the difference between traditional file organization and the database approach to managing digital data.
- Explain how relational and object-oriented database management systems are used to construct databases, populate them with data, and manipulate the data to produce information.
- Enumerate the most important features and operations of a relational database, the most popular database model.
- Understand how data modeling and design creates a conceptual blueprint of a database.
- Discuss how databases are used on the Web.
- List the operations involved in transferring data from transactional databases to data warehouses.
Types of databases:- Hierarchical.
- Network.
- Relational.
- Object-oriented.
- Object-relational.
Entity-relationship Diagrams:- Crows-foot: several-to-one (or one-to-many).
- Crow's-feet: several-to-several (or many-to-many).
- Crossbar: one-to-one relationship.
- Ring: "optional" relationship.
Phases of Building a Data Warehouse:- External and Internal Data Sources.
- Extract, Transform, Load (ETL).
- Becomes Metadata: Data Warehouse, Data Marts.
- Served to OLAP (online analytical processing) and Data Mining.
Summary:Databases function as collections of interrelated data that, within an organization and sometimes between organizations, are shared with many units and contribute to productivity and efficiency.- The database approach results in less data redundancy, independence, and greater data integrity.
- The smallest piece of data collected about an entity is a character. Multiple characters make up a field. Several fields make up a record. A collection of related records is a file, or in the relational model, a table.
- A database management system (DBMS) is a software tool that enables us to construct databases, populate them with data, and manipulate that data.
- Database models include hierarchical, network, relational, and object-oriented.A combination of relational and object-oriented models is called an object-relational database.
- Primary keys are unique identifiers. Composite keys are combinations of two or more fields that are used as a primary key. Foreign keys link one table to another within the database.
- In an object-oriented database, data sets along with the procedures that process them are objects. The relationship between one set of data and another is by way of one object containing the other, rather than by foreign keys.
- SQL is an international standard language for querying relational databases.
- Before a database is constructed, a schema is constructed and metadata is collected. This is information about the data to be kept in the database.
- Data warehouses are huge collections of historical transactions copied from transactional databases, often along with other data from outside sources. Managers use software tools to glean useful information from data warehouses to support their decision making. Some data warehouses are made up of several data marts, each focusing on an organizational unit or a subject.
- In each addition of data from a transactional database to a data warehouse, the data is extracted, transformed, and loaded, a process known by its acronym, ETL.
Key Terms:- Character.
- Composite Key.
- Data Dictionary.
- Data Integrity.
- Data Mart.
- Data Modeling.
- Data Redundancy.
- Data Warehouse.
- DBA: Database Administrator.
- Database Approach.
- DBMS: Database Management System.
- Encapsulation.
- Entity.
- ERD: Entity Relationship Diagram.
- Field.
- File.
- Foreign Key.
- Inheritance.
- Join Table.
- Metadata.
- Many-to-Many Relationship.
- Object-oriented Database Model.
- OLAP: Online Analytical Processing.
- One-to-Many Relationship.
- Primary Key.
- Record.
- Relational Model.
- Relational Operation.
- Schema.
- SQL: Structured Query Language.
- Table.
- Traditional File Approach.
Chapter 8: The Web-Enabled Enterprise.
Learning Objectives:- Describe how the Web and high-speed Internet connections are changing business operations.
- Explain the functionality of various Web technologies.
- Compare and contract options for Web servers.
- Explain basic business-to-business and business-to-consumer practices on the Web.
- Explain the relationship between Web technologies and supply chain management.
- Give examples of features and services that successful business Web sites offer.
- Learn about online annoyances such as spam and adware, and how to protect against online identity theft.
Degrees of Server Service:- Shared Hosting.
- Virtual Private Servers.
- Dedicated Hosting.
- Co-location.
Factors:- Type and quality of application provided.
- Storage space.
- Quality of technical support.
- Traffic limits.
- Availability of e-mail accounts and services.
- Scalability.
- Support of page design.
- Security.
- Uptime ratio.
- [Setup fee.
- Monthly fee.
Fulfillment:- Picking.
- Packing.
- Shipping.
Benefits:- Convenience.
- Time-saver.
- Search Mechanism.
- Comparative Shopping.
- Product Reviews.
Key Terms:- B2B.
- B2C.
- Banner.
- Blog.
- Brick-and-Mortar.
- Clickstream Tracking.
- Co-location.
- Consumer Profiling.
- Conversion Rate.
- Cookie.
- Dedicated Hosting.
- Domain Name.
- Dynamic Web Page.
- Extranet.
- FTP: File Transfer Protocol.
- Fulfillment.
- HTML: Hypertext Markup Language.
- HTTP: Hypertext Transfer Protocol.
- HTTPS: Hypertext Transfer Protocol Secure.
- Impression.
- IM: Instant Messaging.
- Intranet.
- Load Balancing.
- M-Commerce.
- Mirror.
- Phishing.
- Podcast.
- Pure-play.
- Reach Percentage.
- Reverse Auction (name-your-own-price).
- RSS: Rich Site Summary.
- Search Advertising.
- Shared Hosting.
- Spyware.
- URL: Uniform Resource Locator.
- Virtual Private Server.
- XHTML: Extensible Hypertext Markup Language.
- XML: Extensible Markup Language.
Chapter 9: Challenges of Global Information Systems.
Learning Objectives:- Explain why multinational corporations must use global information systems.
- Provide elementary advice for designing Web sites for an international audience.
- Cite the cultural, legal, and other challenges to implementing international information systems.
Steps to Building a Web site:- Plan.
- Learn the Preferences.
- Translate Properly.
- Be Egalitarian.
- Avoid Cultural Imperialism.
Differences:- Regulations.
- Tariffs.
- Payment Mechanisms.
- Language.
- Culture.
- Economic, Scientific, and Security Interests.
- Political Challenges.
- Standards.
- Legal Barriers.
- Timezones.
Key Terms:- EAN: European Article Number.
- Global Information System.
- GTIN: Global Trade Item Number.
- Glocalization.
- Safe Harbor.
- UCC: Uniform Code Council.
- UPC: Universal Product Code.
Chapter 10: Decision Support and Expert Systems.
Learning Objectives:- List and explain the phases in decision making.
- Articulate the difference between structured and unstructured decision making.
- Describe the typical software components that decision support systems and expert systems comprise.
- Give examples of how decision support systems and expert systems are used in various domains.
- Describe the typical elements and uses of geographic information systems.
Decision Aids:- DSS: Decision Support Systems.
- Expert Systems.
- GIS: Geographic Information Systems.
- Any other software tool that helps with decision making automatically or on demand.
Decision-making Process:- Intelligence.
- Design.
- Choice.
Problems:
Expert System:- Knowledge Base.
- Inference Engine.
- Dialog Module.
Key Terms:- Algorithm.
- AI: Artificial Intelligence.
- Data Management Module.
- DSS: Decision Support System.
- Dialog Module.
- ES: Expert System.
- GIS: Geographic Information System.
- Inference Engine.
- Knowledge Base.
- Model.
- Model Management Module.
- Neural Network.
- Parameter.
- Semistructured Problem.
- Sensitivity Analysis.
- Structured Problem.
- Unstructured Problem.
- What If Analysis.
- Yield Management.
Chapter 11: Business Intelligence and Knowledge Management.
Learning Objectives: Explain the concepts of data mining and online analytical processing.[*]Explain the notion of business intelligence and its benefits to organizations.[*]Identify needs for knowledge storage and management in organizations.[*]Explain the challenges in knowledge management and its benefits to organizations.[/LIST]
Applications of Data Mining:- Consumer clustering.
- Customer churn.
- Fraud detection.
- Direct marketing.
- Interactive marketing.
- Market basket analysis.
- Trend analysis.
Summary:- Business Intelligence (BI) is any information about the organization, its customers, and its suppliers that can help firms make decisions.
- Data mining is the process of selecting, exploring, and modeling large amounts of data to discover previously unknown relationships that can support decision making. Helps sequence analysis, classification, clustering, and forecasting
- OLAP helps users peruse two-dimensional tables created from data that is usually stored in data warehouses.
- Knowledge management involves gathering, organizing, sharing, analyzing, and disseminating knowledge that can improve an organi9zation's performance.
- An important element of knowledge management is autocategorization, the automatic classification of information.
Key Terms:- Autocategorization.
- BI: Business Intelligence.
- Dashboard.
- Data Mining.
- Dimensional Database.
- Drilling Down.
- Employee Knowledge Network.
- Knowledge Management.
- Multidimensional Database.
- OLAP: Online Analytical Processing.
Chapter 12: Systems Planning and Development.
Learning Objectives:- Explain the importance of and steps in IT planning.
- Describe the systems development life cycle, which is the traditional approach to systems development.
- Explain the challenges involved in systems development.
- List the advantages and disadvantages of different system conversion strategies.
- Enumerate and explain the principles of agile systems development methods.
- Explain the concept of systems integration.
- Discuss whether IS professionals should be certified.
Data Flow Diagram Symbols:- Box: Entity.
- Circle: Process.
- Rectangle: Data Store.
- Arrow: Flow of Data.
Summary:- IT planning is important especially because investing in IT is typically great and because of the high risk in implementing enterprise applications.
- SDLC: Systems Development Life Cycle.
- Analysis.
- Design.
- Implementation.
- Support.
- Conversion Strategies:
- Parallel.
- Phased.
- Cut-over.
- Piloting.
Key Terms:- Agile Method.
- Beta Site.
- Conversion.
- Cost/Benefit Analysis.
- Cut-over Conversion (flash cut conversion).
- DFD: Data Flow Diagram.
- Feasibility Study.
- Implementation.
- Organizational Culture.
- Parallel Conversion.
- Phased Conversion.
- Piloting.
- Prototyping.
- ROI: Return on Investment.
- Support.
- System Requirement.
- Systems Analysis.
- Systems Design.
- SDLC: Systems Development Life Cycle.
- Systems Integration.
- UML: Unified Modeling Language.
Chapter 13: Choices in Systems Acquisition.
Learning Objectives:- Explain the differences among the alternatives to tailored system development: outsourcing, licensing ready-made software, contracting with an application service provider, and encouraging users to develop their own applications.
- List the business trade-offs inherent in the various methods of acquiring systems.
- Describe which systems acquisition approach is appropriate for a particular set of circumstances.
- Discuss organizational policies on employee computer use.
Summary:- Outsourcing Advantages:
- Improving Cost Clarity.
- Reducing License/Maintenance Fees.
- Freeing the client to concentrate on its core businesses.
- Shortening the time needed to implement new technologies.
- Reducing personnel.
- Reducing fixed costs.
- Gaining access to highly qualified know-how.
- Receiving ongoing consulting as part of standard support.
- Outsourcing Disadvantages:
- Loss of control.
- Loss of experienced employees.
- Loss of competitive advantage.
- High cost.
Key Terms:- ASP: Application Service Provider.
- Benchmarking.
- Beta Versions.
- Custom-designed (tailored) Software.
- Offshoring.[*}Outsourcing.
- RFI: Request for Information.
- RFP: Request for Proposal.
- Service-level Agreement.
- SaaS: Software as a Service.
- SSP: Storage Service Provider.
- Uptime.[*}User Application Development.
Chapter 14: Risks, Security, and Disaster Recovery.
Learning Objectives:- Describe the primary goals of information security.
- Enumerate the main types of risks to information systems.
- List the various types of attacks on networked systems.
- Describe the types of controls required to ensure the integrity of data entry and processing and uninterrupted e-commerce.
- Describe the various kinds of security measures that can be taken to protect data and ISs.
- Outline the principles of developing a recovery plan.
- Explain the economic aspects of information security.
Goals of Information Security:- Reduce the risk of systems and organizations ceasing operations.
- Maintain information confidentiality.
- Ensure the integrity and reliability of data resources.
- Ensure the uninterrupted availability of data resources and online operations.
- Ensure compliance with policies and laws regarding security and privacy.
Common Controls:- Program robustness and data entry controls.
- Backup.
- Access controls.
- Atomic transactions.
- Audit trail.
Key Terms:- Access Controls.
- Antivirus Software.
- Asymmetric (public key) Encryption.
- Atomic Transaction.
- Audit Trail.
- Authentication.
- Backup.
- Biometric.
- Blackout.
- Brownout.
- Business Recovery Plan.
- CA: Certificate Authority.
- Ciphertext.
- Controls.
Additional Notes:- UPS: Uninterruptible Power Supply.
- Honeytoken.
- Honeypot.
- Logic bomb.
- Dos: Denial-of-Service.
- DDoS: Distributed denial-of-service.
- RAID: Redundant Arrays of Independent Disks.
- DMX: Demilitarized Zone.Plaintext vs. Ciphertext.
- TLS: Transport Layer Security.
- SSL: Secure Socket Layer.
- Digital signature.
- Message digest.
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IRC Nickname: Wayne|Eregion2 Group: Emeritus Posts: 3087 Member No.: 156 Joined: January 25, 2008 Total Events Attended: 8 | Chapter 1: Managerial Accounting.
Study Objectives:- Explain the distinguishing features of managerial accounting.
- Identify the three broad functions of management.
- Define the three classes of manufacturing costs.
- Distinguish between product and period costs.
- Explain the difference between a merchandising and a manufacturing income statement.
- Indicate how cost of goods manufactures is determined.
- Explain the difference between a merchandising and a manufacturing balance sheet.
- Identify trends in managerial accounting.
Management Functions:- Planning.
- Directing.
- Controlling.
All Costs:- Product Costs:
- Direct materials.
- Direct labor.
- Manufacturing overhead.
- Indirect materials.
- Indirect labor.
- Etc.
- Period Costs:
- Selling Expenses.
- Administrative Expenses.
Income Statement:- Merchandising Company:
- Beginning Merchandise Inventory.
- Cost of Goods Purchased.
- Cost of Goods Available for Sale.
- Ending Merchandise Inventory.
- Cost of Goods Sold.
- Manufacturing Company:
- Beginning Finished Goods Inventory.
- Cost of Goods Manufactured.
- Cost of Goods Available for Sale.
- Ending Finished Goods Inventory.
- Cost of Goods Sold.
Balance Sheet:- Merchandising Company:
- Cash.
- Net Accounts Receivable.
- Merchandise Inventory.
- Prepaid Expenses.
- Total Current Assets.
- Manufacturing Company:
- Cash.
- Net Accounts Receivable.
- Inventories.
- Finished Goods.
- Work in Process.
- Raw Materials.
- Prepaid Expenses.
- Total Current Assets.
Glossary:- Activity-based Costing (ABC).
- Balanced Scoreboard.
- Board of Directors.
- Chief Executive Officer (CEO).
- Chief Financial Officer (CFO).
- Controller.
- Cost of Goods Manufactured.
- Direct Labor.
- Direct Materials.
- Enterprise Resource Planning (ERP) System.
- Indirect Labor.
- Indirect Materials.
- Just-in-time (JIT) Inventory.
- Line Positions.
- Managerial Accounting.
- Manufacturing Overhead.
- Period Costs.
- Product Costs.
- Staff Positions.
- Theory of Constraints.
- Total cost of Work in Process.
- Total Manufacturing costs.
- Total Quality Management (TQM).
- Treasurer.
- Value Chain.
Chapter 2: Job Order Cost Accounting.
Study Objectives:- Explain the characteristics and purposes of cost accounting.
- Describe the flow of costs in a job order cost accounting system.
- Explain the nature and importance of a job cost sheet.
- Indicate how the predetermined overhead rate is determined and used.
- Prepare entries for jobs completed and sold.
- Distinguish between under- and over-applied manufacturing overhead.
Flow of Documents:- Job Cost Sheet.
- Materials Requisition Slips.
- Labor Time Tickets.
- Predetermined Overhead Rate.
Glossary:- Cost Accounting.
- Cost Accounting System.
- Job Cost Sheet.
- Job Order Cost System.
- Materials Requisition Slip.
- Overapplied Overhead.
- Predetermined Overhead Rate.
- Process Cost System.
- Summary Entry.
- Time Ticket.
- Underapplied Overhead.
Chapter 3: Process Cost Accounting.
Study Objectives:- Understand who uses process cost systems.
- Explain the similarities and differences between job order cost and process cost systems.
- Explain the flow of costs in a process cost system.
- Make the journal entries to assign manufacturing costs in a process cost system.
- Compute equivalent units.
- Explain the four steps necessary to prepare a production cost report.
- Prepare a production cost report.
Glossary:- Conversion Costs.
- Cost Reconciliation Schedule.
- Equivalent Units of Production.
- Operations Costing.
- Physical Units.
- Process Cost System.
- Production Cost Report.
- Total Units (costs) Accounted For.
- Total Units (costs) to be Accounted For.
- United Production Costs.
- Weighted-average Method.
Chapter 4: Activity-Based Costing.
Study Objectives:- Recognize the difference between traditional costing and activity-based costing.
- Identify the steps in the development of an activity-based costing system.
- Know how companies identify the activity cost pools used in activity-based costing.
- Know how companies identify and use cost drivers in activity-based costing.
- Understand the benefits and limitations of activity-based costing.
- Differentiate between value-added and non-value-added activities.
- Understand the value of using activity levels in activity-based costing.
- Apply activity-based costing to service industries.
Activity-based Overhead Rate = Estimated Overhead per Activity / Expected Use of Cost Driver per Activity.
Activity Levels:- Unit-Level.
- Batch-Level.
- Product-Level.
- Facility-Level.
Glossary:- Activity.
- Activity-based Costing (ABC).
- Activity-based Management (ABM).
- Activity Cost Pool.
- Batch-level Activities.
- Cost Driver.
- Facility-level Activities.
- Just-in-time (JIT) Processing.
- Non-value-added Activity.
- Product-level Activities.
- Unit-level Activities.
- Value-added Activity.
Chapter 5: Cost-Volume-Profit.
Study Objectives:- Distinguish between variable and fixed costs.
- Explain the significance of the relevant range.
- Explain the concept of mixed costs.
- List the five components of cost-volume-profit analysis.
- Indicate what contribution margin is and how it can be expressed.
- Identify the three ways to determine the break-even point.
- give the formulas for determining sales required to earn target net income.
- Define margin of safety, and give the formulas for computing it.
Five components of CVP analysis:- Volume, or level of activity.
- Unit selling prices.
- Variable cost per unit.
- Total fixed costs.
- Sales mix.
Variable Cost per Unit = Change in Total Costs / High Minus Low Activity Level.
Contribution Margin per Unit = Unit Selling Price - Unit Variable Costs.
Contribution Margin Ratio = Contribution Margin per Unit / Unit Selling Price.
Break-even Point in Units = Fixed Costs / Contribution Margin per Unit.
Break-even Point in Dollars = Fixed Costs / Contribution Margin Ratio.
Sales = Variable Costs + Fixed Costs + Net Income, or y = ax +b.
Required Sales = Variable Costs + Fixed Costs + Target Net Income.
Required Sales in Units = (Fixed Costs + Target Net Income) / Contribution Margin per Unit.
Required Sales in Dollars = (Fixed Costs + Target Net Income) / Contribution Margin Ratio.
Margin of Safety in Dollars = Actual (Expected) Sales - Break-even Sales.
Margin of Safety Ratio = Margin of Safety in Dollars / Actual (Expected) Sales.
Glossary:- Activity Index.
- Break-even Point.
- Contribution Margin (CM).
- Contribution Margin per Unit.
- Contribution Margin Ratio.
- Cost Behavior Analysis.
- Cost-volume-profit (CVP) Analysis.
- Cost-volume-profit (CVP) Graph.
- Cost-volume-profit (CVP) Income Statement.
- Fixed Costs.
- High-low Method.
- Margin of Safety.
- Mixed Costs.
- Relevant Range.
- Target Net Income.
- Variable Costs.
Chapter 6: Incremental Analysis.
Study Objectives:- Identify the steps in management's decision-making process.
- Describe the concept of incremental analysis.
- Identify the relevant costs in accepting an order at a special price.
- Identify the relevant costs in a make-or-buy decision.
- Identify the relevant costs in determining whether to sell or process materials further.
- Identify the relevant costs to be considered in retaining or replacing equipment.
- Identify the relevant costs in deciding whether to eliminate an unprofitable segment.
- Determine sales mix when a company has limited resources.
Costs:- Relevant.
- Opportunity.
- Sunk.
Glossary:- Incremental Analysis.
- Joint Costs.
- Joint Products.
- Opportunity Cost.
- Relevant Costs.
- Sunk Cost.
- Theory of Constraints.
Chapter 7: Variable Costing, A Decision-Making Perspective.
Study Objectives:- Explain the difference between absorption costing and variable costing.
- Discuss the effect that changes in production level and sales level have on net income measured under absorption costing versus variable costing.
- Discuss the relative merits of absorption costing versus variable costing for management decision making.
- Explain the term sales mix and its effects on break-even sales.
- Understand how operating leverage affects profitability.
Fixed Manufacturing Overhead:- Product Cost under Absorption Costing (higher manufacturing cost per unit).
- Period Cost under Variable Costing (lower manufacturing cost per unit).
Absorption Costing Income Statement:- Sales.
- Cost of Goods Sold.
- Beginning Inventory.
- Cost of Goods Manufactured.
- Cost of Goods Available for Sale.
- Ending Inventory.
- Cost of Goods Sold.
- Gross Profit.
- Variable Selling and Administrative Expenses.
- Fixed Selling and Administrative Expenses.
- Net Income.
Variable Costing Income Statement:- Sales.
- Variable Cost of Goods Sold.
- Beginning Inventory.
- Variable Cost of Goods Manufactured.
- Variable Cost of Goods Available for Sale.
- Ending Inventory.
- Variable cost of Goods Sold.
- Variable Selling and Administrative Expenses.
- Contribution Margin.
- Fixed Manufacturing Overhead.
- Fixed Selling and Administrative Expenses.
- Net Income.
Weighted-average Unit Contribution Margin = (Unit Contribution Margin * Sales Mix percentage) + Etc.
Break-even Point in Units = Fixed Costs / Weighted-average Unit Contribution Margin.
Weighted-average Contribution Margin Ratio = (Contribution Margin Ratio * Sales Mix Percentage) + Etc.
Break-even Point in Dollars = Fixed Costs / Weighted-average Contribution Margin Ratio.
Degree of Operating Leverage = Contribution Margin / Net Income.
Break-even Point in Dollars = Fixed Costs / Contribution Margin Ratio.
Margin of Safety Ratio = (Actual Sales - Break-even Sales) / Actual Sales.
Glossary:- absorption Costing.
- Cost Structure.
- Degree of Operating Leverage.
- Operating Leverage.
- Sales Mix.
- Variable Costing.
Chapter 8: Pricing.
Study Objectives:- Compute a target cost when a product price is determined by the market.
- Compute a target selling price using cost-plus pricing.
- Use time and material pricing to determine the cost of services provided.
- Determine a transfer price using the negotiated, cost-=based, and market-based approaches.
- Explain the issues that arise when transferring goods between divisions located in countries with different tax rates.
Target Cost = Market Price - Desired Profit.
Target Selling Price = Cost + (Markup Percentage * Cost).
Markup Percentage = Desired ROI (Return on Investment) per Unit / Total Unit Cost.
Target Selling Price per Unit = Total Unit Cost + (Total Unit Cost * Markup Percentage).
Calculating the Labor Charge:- Find the cost of labor per hour, including: direct labor; fringe benefits; selling, administrative, and similar overhead costs; and an allowance for a desired profit (or Return on Investment) per hour of employee time. Expressed as:
Calculating the Material Loading Charge:- Covers the costs of purchasing, receiving, handling, and storing materials, plus any desired profit margin on the materials themselves. The materials loading percentage is expressed as a percentage of the total estimated costs of parts and materials for the year: Estimate total annual costs for purchasing, receiving, handling, and storying materials; divide this amount by the total estimated cost of parts and materials, and add a desired profit margin. Expressed as:
Glossary:- Absorption Cost Pricing.
- Cost-based Transfer Price.
- Cost-plus Pricing.
- Full Cost Pricing.
- Market-based Transfer Price.
- Markup.
- Material Loading Charge.
- Negotiated Transfer Price.
- Outsourcing.
- Target Cost.
- Target Selling Price.
- Time and Material Pricing.
- Transfer Price.
- Variable Cost Pricing.
Chapter 9: Budgetary Planning.
Study Objectives:- Indicate the benefits of budgeting.
- State the essentials of effective budgeting.
- Identify the budgets that comprise the master budget.
- Describe the sources for preparing the budgeted income statement.
- Explain the principal sections of a cash budget.
- Indicate the applicability of budgeting in non-manufacturing companies.
Benefits of Budgeting:- Plan Ahead.
- Definite Objectives.
- Early Warning System.
- Coordination of Activities.
- Management Awareness.
- Motivates Personnel.
Essentials of Effective Budgeting:- Sound Organizational Structure.
- Research and Analysis.
- Acceptance by all Levels of Management.
Master Budget:- Sales Budget.
- Production Budget.
- Direct Materials Budget.
- Direct Labor Budget.
- Manufacturing Overhead Budget.
- Selling and Administrative Expense Budget.
- Budgeted Income Statement.
- Capital Expenditure Budget.
- Cash Budget.
- Budgeted Balance Sheet.
Example Sales Budget:
Example Production Budget:
Example Direct Materials Budget:
Example Direct Labor Budget:
Example Schedule of Expected Collections from Customers:
Example Schedule of Expected Payments for Direct Materials:
Glossary:- Budget.
- Budget Committee.
- Budgetary Slack.
- Budgeted Balance Sheet.
- Budgeted Income Statement.
- Cash Budget.
- Direct Labor Budget.
- Direct Materials Budget.
- Financial Budgets.
- Long-range Planning.
- Manufacturing Overhead Budget.
- Master Budget.
- Merchandise Purchases Budget.
- Operating Budgets.
- Participative Budgeting.
- Production Budget.
- Sales Budget.
- Sales Forecast.
- Selling and Administrative Expense Budget.
Chapter 10: Budgetary Control and Responsibility Accounting.
Learning Objectives:- Describe the concept of budgetary control.
- Evaluate the usefulness of static budget reports.
- Explain the development of flexible budgets and the usefulness of flexible budget reports.
- Describe the concept of responsibility accounting.
- Indicate the features of responsibility reports for cost centers.
- Identify the content of responsibility reports for profit centers.
- Explain the basis and formula used in evaluating performance in investment centers.
Glossary:- Budgetary Control.
- Controllable Cost.
- Controllable Margin.
- Cost Center.
- Decentralization.
- Direct Fixed Costs.
- Flexible Budget.
- Indirect Fixed Costs.
- Investment Center.
- Management by Exception.
- Non-controllable Costs.
- Profit Center.
- Residual Income.
- Responsibility Accounting.
- Responsibility Reporting System.
- Return on Investment (ROI).
- Segment.
- Static Budget.
Chapter 11: Standard Costs and Balanced Scoreboard.
Learning Objectives:- Distinguish between a standard and a budget.
- Identify the advantages of standard costs.
- Describe how standards are set.
- State the formulas for determining direct materials and direct labor variances.
- State the formulas for determining manufacturing overhead variances.
- Discuss the reporting of variances.
- Prepare an income statement for management under a standard costing system.
- Describe the balanced scorecard approach to performance evaluation.
Glossary:- Balanced Scoreboard.
- Customer Perspective.
- Direct Labor Price Standard.
- Direct Labor Quantity Standard.
- Direct Materials Price Standard.
- Direct Materials Quantity Standard.
- Financial perspective.
- Ideal Standards.
- Internal Process perspective.
- Labor price Variance.
- Labor Quantity Variance.
- Learning and Growth perspective.
- Materials Price Variance.
- Materials Quantity Variance.
- Normal Standards.
- Overhead Controllable Variance.
- Overhead Volume Variance.
- Standard Cost Accounting System.
- Standard Costs.
- Standard Hours Allowed.
- Standard Predetermined Overhead Rate.
- Total Labor Variance.
- Total Materials Variance.
- Total Overhead Variance.
- Variance.
Chapter 12: Planning for Capital Investments.
Study Objectives:- Discuss the capital budgeting evaluation process, and explain what inputs are used in capital budgeting.
- Describe the cash payback technique.
- Explain the net present value method.
- Identify the challenges presented by intangible benefits in capital budgeting.
- Describe the profitability index.
- Indicate the benefits of performing a post-audit.
- Explain the internal rate of return method.
- Describe the annual rate of return method.
Glossary:- Annual rate of return method.
- Capital budgeting.
- Cash payback technique.
- Cost of capital.
- Discounted cash flow technique.
- Discount rate.
- Internal rate of return (IRR).
- Internal rate of return (IRR) method.
- Net present value (NPV).
- Net present value (NPV) method.
- Post-audit.
- Profitability index.
Chapter 13: Statement of Cash Flows.
Study Objectives:- Indicate the usefulness of the statement of cash flows.
- Distinguish among operating, investing, and financing activities.
- Explain the impact of the product life cycle on a company's cash flows.
- Prepare a statement of cash flows using one of two approaches: (1) the indirect method or (2) the direct method.
- use the statement of cash flows to evaluate a company.
The cash flow statement includes:- Operating activities.
- Investing activities.
- Financing activities.
Significant non-cash activities include:- Issuance of common stock to purchase assets.
- Conversion of bonds into common stock.
- Issuance of debt to purchase assets.
- Exchanges of plant assets.
The corporate life cycle includes:- Introductory phase.
- Growth phase.
- Maturity phase.
- Decline phase.
Statement of Cash Flows:- Cash Flows from Operating Activities:
- Net Income.
- Adjustments to reconcile net income to net cash provided by operating activities.
- Depreciation expense (added).
- Loss on sale of equipment (added).
- Decrease in accounts receivable (added).
- Increase in merchandise inventory (subtracted).
- Increase in prepaid expenses (subtracted).
- Increase in accounts payable (added).
- Decrease in income tax payable (subtracted).
- Net Cash provided by operating activities.
- Cash flows from investing activities.
- Purchase of building (subtracted).
- Purchase of equipment (subtracted).
- Sale of equipment (added).
- Net cash used by investing activities.
- Cash flows from financing activities.
- Issuance of common stock (added).
- payment of cash dividends (subtracted).
- Net cash used by financing activities.
- Net increase in cash.
- Cash at beginning of period.
- Cash at end of period.
Free Cash Flow = Cash Provided by Operating Activities - Capital Expenditures - Cash Dividends.
Current Cash Debt Coverage Ratio = Cash Provided by Operating Activities / Average Current Liabilities.
Cash Debt Coverage Ratio = Cash Provided by Operating Activities / Average Total Liabilities.
Glossary:- Cash Debt Coverage Ratio.
- Current Cash Debt Coverage Ratio.
- Direct Method.
- Financing Activities.
- Free Cash Flow.
- Indirect Method.
- Investing Activities.
- Operating Activities.
- Product Life Cycle.
- Statement of Cash Flows.
Chapter 14: Financial Statement Analysis, The Big Picture.
Study Objectives:- Describe and apply horizontal analysis.
- Describe and apply vertical analysis.
- Identify and compute ratios used in analyzing a company's liquidity, solvency, and profitability.
- Understand the concept of quality of earnings.
Comparative analysis includes:- Intra-company basis.
- Inter-company basis.
- Industry averages.
Change Since Base Period = (Current-year amount - base-year amount) / base-year amount.
Current results in relation to base period = current-year amount / base-year amount.
Example of inter-company horizontal analysis:
Glossary:- Asset turnover ratio.
- Average collection period.
- Cash debt coverage ratio.
- Current cash debt coverage ratio.
- Current ratio.
- Days in inventory.
- Debt to total assets ratio.
- Earnings per share.
- Free cash flow.
- Gross profit rate.
- Horizontal analysis.
- Inventory turnover ratio.
- Leveraging.
- Liquidity ratios.
- Payout ratio.
- Price-earnings ratio.
- Pro forma income.
- Profit margin ratio.
- Profitability ratios.
- Quality of earnings.
- Receivables turnover ratio.
- Return on assets ratio.
- Return on common stockholders' equity ratio.
- Solvency ratios.
- Times interest earned ratio.[*(]Trading on the equity.
- Vertical analysis.
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IRC Nickname: Bam Group: Emeritus Posts: 2762 Member No.: 131 Joined: January 20, 2008 Total Events Attended: 111 | moved
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IRC Nickname: Tnuac Group: Emeritus Posts: 1806 Member No.: 51 Joined: December 30, 2007 Total Events Attended: 58 | Wayne is just far too clever
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~Aetas: carpe diem quam minimum credula postero~
"Seize the day and place no trust in tomorrow"
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IRC Nickname: Wayne|Eregion2 Group: Emeritus Posts: 3087 Member No.: 156 Joined: January 25, 2008 Total Events Attended: 8 | It's more like, "Wayne gets psyched out when he has to study for three exams all at once." 
Thanks for the move. 
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IRC Nickname: Wayne|Eregion2 Group: Emeritus Posts: 3087 Member No.: 156 Joined: January 25, 2008 Total Events Attended: 8 | Roflwow, my first final only took 20 minutes. The accounting one is going to be harder though.
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IRC Nickname: Abs Group: Emeritus Posts: 2071 Member No.: 4 Joined: December 26, 2007 Total Events Attended: 97 | WTF??????
It was either too long to bother reading, or just too many big words.
I think it was the first one@@'
~Abs
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"I may not agree with what you say but I will defend to the death your right to say it."
Wg Council & Secondary Leader - 21/10/07 to 24/12/08
Msn: [email protected] |
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IRC Nickname: Group: Guests Posts: Member No.: 0 Joined: January 1, 1970 Total Events Attended: 1 | wow. thats alot. made me go koo koo.. :S
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IRC Nickname: Gorgemaster Group: Elite Guardian Posts: 9840 Member No.: 3 Joined: December 26, 2007 Total Events Attended: 540 | I always read every topic, long or short...
However this one made me want to kill myself, so I didn't finish it.
So the exam went well Ereg? glad to hear it
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