Managerial Accounting and Cost Concepts Competency : Cost Systems Topic: Cost Concepts

Definitions

1. Managerial accounting-the name given to accounting systems design for internal users.
2. Financial accounting-the name given it to accounting information provided four and used by external users.
3. Strategic planning- broad, Long range planning usually conducted by top management
4. Capital budgeting- systematic planning for long term investments in operating assets.
5. Operational budgeting- managerial planning decisions regarding current and immediate future operations that are characterized buy regularity and frequency.
6. Cost-Volume-Profit (CVP)- techniques for determining how changes in revenues, costs, and the level of activity affect the profitability of an...