Vocab from Chapter 1 for Managerial Accounting 206
Choice from among a set of alternative courses of action designed to achieve some objective
The process of identifying, measuring, accumulating, analyzing, preparing, interpreting, and communicating information that helps managers fulfill organizational objectives.
produces information for external parties, such as stockholders, suppliers, banks, and government regulatory agencies.
The classification, accumulation, and reporting of data that helps users understand and evaluate organizational performance.
Reporting and interpreting information that helps managers to focus on operating problems, imperfections, inefficiencies, and opportunities.
The aspect of accounting that often involves a special study to assess possible courses of action and reccomends the best course to follow
A formal mechanism for gathering, organizing, and communicating information about an organization's activities.
Generally Accepted Accounting Principals (GAAP)
A set of standards for every public company's financial reports intended for external users.
International Financial Reporting Standards (IFRS)
A set of standards that all European countries and more than 100 countries worldwide must comply to
an act in 2002 adding several lengths of regulation, requiring more top-management oversight of a company's accounting policies and procedues.
policies to protect and make the most efficient use of an organization's assets.
Foreign Corrupt Practices Act
A U.S. Law forbidding bribery and other corrupt practices.
review and evaluate accounting systems including companies' internal controls, and conduct management audits
reviews to determine whether managers are implementing the policies and procedures specified by top management
weighing estimated costs against probable benefits - a primary consideration in choosing among accounting systems and methods
the system's effect on the behavior, specifically the decisions, of managers
setting objectives for an organization and outlining how it will attain them
implementing plans and using feedback to evaluate the attainment of objectives
a quantitative expression of a plan of action
provide feedback by comparing results with plans and by highlighting variances
deviations from plans
management by exception
Concentrating on areas that deviate from the plan and ignoring areas that are presumed to be running smoothly.
Product Life cycle
the various stages through which a product passes: conception and product development, introduction into the market, maturation of the market, withdrawl from the market
The Value Chain
The set of business functions or activities that add value to the products or services of an organization: Research and Development, Product Design, Production, Marketing, Distribution, Customer service
directly involved with making and selling the organization's products or services
Advisory - support of the line managers
Chief Financial Officer (CFO)
a top executive who deals with all finance and accounting issues, and oversees the accounting function in most organizations.
a member concerned mainly with the company's financial matters such as raising and managing cash
A member concerned with operating matters such as aiding management decision-making
Certified Public Accountant (CPA)
chartered accountants (CAs)
the CPA of other nations
International Accounting Education Standards Board (IAESB)
sets educational standards for auditors throughout the world
certified management accountant (CMA)
unlike CPA is designated to internal accounts
Institute of Management Accountants (IMA)
The largest US professional organization focused on internal accounting. oversees the CMA program.
electronic commerce / e-commerce
conducting business online
Business to business, Business to consumer
Enterprise Resource Planning (ERP)
integrated information systems that support all functional areas of a company
eXtensible Business Reporting Language (XBRL)
xml based accounting language, helping communicate financial information electronically. Influences both external and internal.
business process reengineering
the fundamental rethinking and radical redesign of business processes to improve performance in areas such as cost, quality, service, and speed.
Computer aided design (CAD)
to design products that can be manufactured efficiently
computer aided managing (CAM)
to direct and control production equipment
Computer integrated manufacturing (CIM) systems
they use CAD, CAM, robots, and computer controlled machines.
Just in Time (JIT) Philosophy
a system that minimizes inventory by arranging for materials and subcomponents to arrive just as they were needed for production and for goods to be made just in time to ship them to customers.
applies continuous process improvements to eliminate waste from the entire enterprise.
Total Quality Management (TQM)
an initiative that minimizes costs by maximizing quality. It focuses on continuous improvement in quality, prevention of defects, and satisfying one's customers.
a disciplined, data-driven approach to eliminating defects in any process. A continuous process improvement effort designed to reduce cost by improving quality.
the field dealing with human conduct in relation to what is right and wrong.
IMA Statement of Ethical Professional Practice
The IMA's document of ethical standards.
Code of Conduct
a document specifying the ethical standards of an organization.
When a manager has to choose between making an ethical or unethical decision due to a conflict that usually carries a high value when the unethical decision is made.