Summary: Introduction To Management Accounting

Read the summary and the most important questions on Introduction to Management Accounting

• 1 Section 1

• What is the definition of a business organisation?

  An individual or group of people who work together to achieve commercial goals.

• 1.1.1 Main parts and function business

  This is a preview. There are 7 more flashcards available for chapter 1.1.1
  Show more cards here

• What are [5] most commonly functions (include [2] different naming) of a business organisation?

  Parts or departments 
  

  1. Purchasing
  2. Production or Operations
  3. Sales and Marketing
  4. Finance
  5. Human resources or personnel 

• What does the function Purchasing do?

  The Purchasing or Procurement function aims to ensure the business buys products and services of the required quality at the best price.

• What does the function Production (or operations) do?

  The production function of a business organisation is responsible for producing the goods or providing the services that the business sells.

• What does the function Sales do?

  The Sales function is responsible for
  

  • Generating sales 
  • Aims to ensure that sales transactions proceed as smoothly as possible for both buyer and seller. 

• What does the function Marketing do?

  The Marketing function aims to; 
  

  • ensure that potential buyers are aware of the benefits of the product or service
  • Matches products or services to the customers wants.  

• What does the Finance function do?

  The Finance function
  

  • Processes financial data
  • Provides information relating to monetary or financial performance.
  • Monitors cash (ensuring payments can be made on time) 

• Accounting departmentOf what is it part?What does it do? 

  Part of the finance function
  

  • Include paying employees and suppliers
  • Recording and controlling receipts customers  

• What does the HRM (or personell) department do?

  Ensuring the organisation contains the people and skills required to operate effectively. Including hiring, firing, training, health and safety and overall welfare.

• What does the function information technology do?

  Responsible for ensuring that the organisation uses computing and other technology effectively.