logo image

Managerial Accounting Chapter 1 Key Terms

A study of organizations that are among the best in the world at performing a particular task.
A detailed plan for the future, usually expressed in formal quantitative terms.
Business process
A series of steps that are followed in order to carry out some task in a business.
Chief Financial Officer
The member of the top management team who is responsible for providing timely and relevant data to support planning and control activities and for preparing financial statements for external users. An effective CFO is a key member of the top management team whose advice is sought in all major decisions.
Anything that prevents an organization or individual from getting more of what it wants.
The process of instituting procedures and then obtaining feedback to ensure that all parts of the organization are functioning effectively and moving toward overall company goals.
The member of the top management team who is responsible for providing relevant and timely data to managers and for preparing financial statements for external users. The controller reports to the CFO.
Ensuring that the plan is actually carried out and is appropriately modified as circumstances change.
Corporate governance
The system by which a company is directed and controlled. If properly implemented it should provide incentives for top management to pursue objectives that are in the interests of the company and it should effectively monitor performance.
Cycle time
See Throughput time.
The delegation of decision-making authority throughout an organization by providing managers at various operating levels with the authority to make key decisions relating to their area of responsibility.
Directing and motivating
Mobilizing people to carry out plans and run routine operations.
Enterprise system
A software system that integrates data from across an organization into a single centralized database that enables all employees to access a common set of data.
Enterprise risk management
A process used by a company to help identify the risks that it faces and to develop responses to those risks that enable the company to be reasonably assured of meeting its goals.
Accounting and other reports that help managers monitor performance and focus on problems and/or opportunities that might otherwise go unnoticed.
Financial accounting
The phase of accounting concerned with providing information to stockholders, creditors, and others outside the organization.
Finished goods
Units of product that have been completed but have not yet been sold to customers.
Just-In-Time (JIT)
A production and inventory control system in which materials are purchased and units are produced only as needed to meet actual customer demand.
Lean thinking model
A five-step management approach that organizes resources around the flow of business processes and that pulls units through these processes in response to customer orders.
A position in an organization that is directly related to the achievement of the organization’s basic objectives.
Managerial accounting
The phase of accounting concerned with providing information to managers for use in planning and controlling operations and in decision making.
Non-value-added activity
An activity that consumes resources or takes time but that does not add value for which customers are willing to pay.
Organization chart
A visual diagram of a company’s organizational structure that depicts formal lines of reporting, communication, and responsibility between managers.
Performance report
A detailed report comparing budgeted data to actual data.
Selecting a course of action and specifying how the action will be implemented.
Planning and control cycle
The flow of management activities through planning, directing and motivating, and controlling, and then back to planning again.
Process Reengineering
An approach to improvement that involves completely redesigning business processes in order to eliminate unnecessary steps, reduce errors, and reduce costs.
Raw materials
Materials that are used to make a product.
Sarbanes-Oxley Act of 2002
Legislation enacted to protect the interests of stockholders who invest in publicly traded companies by improving the reliability and accuracy of the disclosures provided to them.
Any part of an organization that can be evaluated independently of other parts and about which the manager seeks financial data. Examples include a product line, a sales territory, a division, or a department.
Activities that must be performed whenever production is switched over from making one type of item to another.
Six Sigma
A method that relies on customer feedback and objective data gathering and analysis techniques to drive process improvement.
A position in an organization that is only indirectly related to the achievement of the organization’s basic objectives. Such positions provide service or assistance to line positions or to other staff positions.
A “game plan” that enables a company to attract customers by distinguishing itself from competitors.
Supply chain management
A management approach that coordinates business processes across companies to better serve end consumers.
Theory of Constraints (TOC)
A management approach that emphasizes the importance of managing constraints.
Throughput time
The time required to manufacture a unit of product. Throughput time is also known as cycle time.
Total Quality Management (TQM)
An approach to continuous improvement that focuses on customers and using teams of front-line workers to systematically identify and solve problems.
Value chain
The major business functions that add value to a company’s products and services such as research and development, product design, manufacturing, marketing, distribution, and customer service.
Work in process
Units of product that are only partially complete and will require further work before they are ready for sale to a customer.

Need essay sample on "Managerial Accounting Chapter 1 Key Terms"? We will write a custom essay sample specifically for you for only $ 13.90/page

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
Complete Buyer Protection
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy