Chapter 1 final

Question 1

Value Chain

Answer 1

set of activities that transforms raw resources into the goods and services end user purchase and consume, and includes the treatment or disposal of any waste generated by the end users

Question 2

Financial Accounting (external/comparative)

Answer 2

• Reports financial position and income according to accounting rules
• Governed by Gernerally Accepted Accounting principle in the united states and by the international financial reporting standards (IFRS) in many other countries

Question 3

Cost accounting (internal/management decision making)

Answer 3

• measures, records, and reports information about costs
• designed by managers
• commonly used in financial accounting information

Question 4

Budgets

Answer 4

• The financial plan of the revenues and resources needed to carry out activities and meet financial goals
• Helps manager decide whether goals can be achieved; may need modifications
• Prepared for the upcoming period (usually 1 year)
• Very important to the financial success of individuals and organizaitions