Organisations and management accounting
Organisations and management accounting

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Organisations and management accounting


anti-monopoly, competition legislation
Laws which seek to maintain the benefits of competition (in order to protect consumers), by preventing the emergence of monopolies in a particular market.
balance sheet
An accounting report summarising an organisation’s assets and liabilities.
barriers to entry
Factors that prevent competitors from entering a particular market.
carbon footprint
The total amount of carbon emissions (greenhouse gasses), that result from an organisation’s activities.
cash flow statement
An accounting report showing the principal types of cash inflows and outflows during a period and any cash surplus or deficit arising.
cooperative firms/social enterprises
Organisations which are typically engaged in commercial activity, but whose primary purpose is social (for example, to provide employment) rather than earning profit for the owner/s. Such organisations are typically owned by their employees and/or customers.
Cost centre.
A production or service location, function, activity or item of equipment for which costs are accumulated.A responsibility centre (e.g. division, department) where local management has responsibility for and is called to account on the basis of costs (or expenses) only.
The set of shared attitudes, values, goals and practices that characterise a society or social groups within it. Culture is a term which describes the psychology, attitudes, experiences, beliefs and values of an organisation. It has also been defined as the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organisation.
A computer-based store of organised data, structured so that it can be used to deliver information to more than one application.
The process of removing layers in the management hierarchy, so that ‘tall’ organisations become flatter, with fewer hierarchical levels.
The study of data relating to the population, for example, birth and death rates and population age profiles.
The process of dividing an organisation into a number of separate investment centres/business segments (divisions) that operate almost as independent businesses.
Achieving the specified outcomes; the extent to which specified outcomes are achieved.
Achieving specified outputs with the minimum necessary inputs (for a given quality specification).
electronic data interchange (EDI)
The exchange of information directly between separate information systems (usually in different organisations). It is the basis of electronic commerce.
Giving employees power, in order to increase their self-confidence and motivation in order to improve their performance in pursuing organisational objectives.
A form of intranet, accessible by specified individuals who may be outside a particular organisation, for example as customers or suppliers.
‘For-profit’ (commercial) organisations
Commercial organisations whose primary purpose is to earn profit for the owner/s.
income statement
An accounting report summarising revenues earned, expenditure incurred and any surplus/deficit of revenue over expenditure during a certain period.
Investment centre.
A type of profit centre for which the manager also has significant influence over the amount of capital investment and is therefore also responsible for profit in relation to capital employed.
lead time
The time between a customer placing an order and the product or service being delivered.
line relationships
The vertical relationships (in the organisational hierarchy) between managers and subordinates.
Marketing Concept
The combination of factors which marketing managers take into account when marketing a product or service, namely: product, price, promotion and place.
mechanistic structures
Tall, hierarchical, bureaucratic organisation structures, with centralisation of authority, formalisation of procedures and high levels of specialisation.
Middle line
The group of middle managers whose role is to convert the objectives and broad plans of the Strategic Apex into operational plans that can be carried out by the organisation's workers.
‘Not-for–profit’ organisations
Organisations that exist to pursue a particular social objective rather than to earn profit for the owner/s.
online conferencing
A computer based communication system which enables collaboration between people in geographically distant locations.
Operating core
The people who do the basic work of providing the products or delivering the services.
organic structures
Flat organisation structures, with decentralisation of authority and low levels of specialisation.
PEST analysis
An analysis of the organisation’s Political/legal, Economic, Social/demographic and Technological environment factors (hence the acronym PEST). This analysis is undertaken as part of the organisation's long- term planning process.
Profit centre.
A division or department where local management has responsibility for revenue and costs, and is called to account on the basis of the difference between them (e.g. profit, loss, surplus, deficit).
Purchasing Mix
The combination of factors which purchasing managers take into account when procuring goods or services, namely: quantity, quality, price and delivery.
responsibility centres
An organisational segment such as a department or a function which a particular manager is accountable for.
Return on Investment
Profit expressed as a percentage of the capital invested in an enterprise.
Return on Sales
Profit earned expressed as a percentage of sales revenue.
Revenue centre.
An organisational segment for which a particular manager is held accountable in terms of revenue earned.
social and environmental reporting
The provision of information about an organisation’s social and environmental policies in its annual financial report.
social class
The hierarchical distinction between individuals or groups in society. In contemporary capitalist society, it is common to define class in terms of income, education or profession –or a combination of these.
social responsibility objectives
Objectives of an organisation relating to wider needs (for example, protecting the environment, provision of employment) rather than just the needs of the owners/providers of funds.
staff relationships
The horizontal relationship between a manager and another organisational member to/from whom the manager gives or receives information or advice.
Individuals or groups who have an interest in the activities of an organisation (they may be influenced by it) and may also have the power to influence the future course of the organisation (such as shareholders or employees). However, stakeholders will differ greatly in their degree of interest and/or influence.
Strategic apex
The highest management level in an organisation, whose purpose is to ensure that the organisation follows its mission and manages its relationship with its environment.
Support staff
The administrative personnel whose purpose is to provide services to other parts of the organisation.
The group of technical/professional staff concerned with the best way of doing a job, specifying output criteria and ensuring that personnel have appropriate skills.
Working from home, facilitated by information technology enabled communication with colleagues.
transaction costs
The costs of engaging in economic activity resulting from an organisation’s relationship to the market.
video conferencing
People in distant locations conducting conferences, through the use of computer networks to transmit audio and video data.
working capital
A measure of a company's liquidity and financial health. It encompasses short term assets (stock, debtors, cash) as well as less short term liabilities (creditors) by which they are financed; often referred to as net current assets. Working capital is generally calculated as: Working capital = current capital - current liabilities.

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