Read the summary and the most important questions on Accounting principles | 9780538756594 | Belverd E. Needles, Marian Powers, Susan V. Crosson.

• 18 The changing business environment

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• What is the planning framework of a company?

  It consists of its vision, mission, strategic, tactical, and operating objectives as combines in a business plan. 

• Why is the supply chain usefull?

  It is useful as a tool to clearly understand the position of the company on the path from raw material to end-user

• Why is the value chain analysis useful?

  To distinguish between primary processes that directly add value to the product or service (from the perspective of the end-user) and support services. It can be used to make strategic decisions about outsourcing

• Which 4 management tools support continuous improvement?

  1. Just-in-time operating philosophy
  2. Total quality management
  3. Activity-based management 
  4. Theory of constraints

• What is a balanced scorecard?

  A performance measurement framework that links the perspectives of a company's four stakeholder groups to the company's plan. The 4 stakeholders perspectives are: Financial(investors), customer, internal business processes, and learning and growth (employees).

• 19 Cost concepts

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• What are the fixed costs?

  A cost that remains constant within a defined range of activity over a period or time.

• What are non value-adding costs?

  The cost of an activity that adds cost to a product or service but does not increase its market value

• What are Product costs?

  or inventoriable costs, are costs assigned to inventory; they include direct materials, direct labor, and overhead. Product costs appear on the income statement as cost of goods sold and on the balance sheet as inventory. 

• 20 Financial statements and the reporting of costs

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• What are the 3 steps in the statement of cost of goods manufactured?

  1. Compute the cost of direct materials used during an accounting period.
  2. Calculate the total manufacturing costs for that period
  3. Determine the total costs of goods manufactured for that period

• 20.1 Inventory accounts in manufacturing organizations

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• What is the work in process inventory account?

  Shows the manufacturing costs that have been incurred and assigned to partially completed units of product.