Managerial Accounting Chapter 1

  1. Audit Committee
    A subcommittee of the board of directors that is responsible for overseeing both the internal audit function and the annual financial statement audit by independent CPAs.
  2. Board of Directors
    The body elected by shareholders to oversee the company.
  3. Budget
    Quantitative expression of a plan that helps managers coordinate and implement the plan.
  4. Certified Management Accountant (CMA)
    A professional certification issued by the IMA to designate expertise in the areas of managerial accounting, economics, and business finance.
  5. Chief Executive Officer (CEO)
    The position hired by the board of directors to oversee the company on a daily basis.
  6. Chief Financial Officer (CFO)
    The position responsible for all of the company's financial concern's.
  7. Chief Operating Officer (COO)
    The position responsible for overseeing the company's operations.
  8. Controller
    The position responsible for general financial accounting, managerial accounting, and tax reporting.
  9. Controlling
    One of management's primary responsibilities; evaluating the results of business operations against the plan and making adjustments to keep the company pressing toward its goals.
  10. Cost-Benefit Analysis
    Weighing cost against benefits to help make decisions.
  11. Cross-Function Teams
    Corporate teams whose members represent various functions of the organization, such as R&D, Design, Production, Marketing, Distribution, and Customer Service.
  12. Directing
    One of management's primary responsibilites; running the company on a day-to-day basis.
  13. Enterprise Resource Planning (ERP)
    Software systems that can integrate all of a company's worldwide functions, departments, and data into a single system.
  14. Extensible Business Reporting Language (XBRL)
    A data tagging system that enables companies to release financial and business information in a format that can be quickly, efficiently, and cost-effectively accessed, sorted, and analyzed over the internet.
  15. Institute of Management Accountants (IMA)
    The professional organization that promotes the advancement of the management accounting profession.
  16. Internal Audit Function
    The corporate function charged with assessing the effectiveness of the company's internal controls and risk management policies.
  17. ISO 9001:2008
    A quality-related certification issued by the International Organization for Standardization (ISO). Firms may become ISO 9001:2008 certified by complying with the quality management standards set forth by the ISO and undergoing extensive audits of their quality management processes.
  18. Just-in-time (JIT)
    An inventory philosophy first pioneered by Toyota in which a product is manufactured just in time to fill customer orders.  Companies adopting JIT are able to substantially reduce the quantity of raw materials and finished product kept on hand.
  19. Lean Thinking
    A philosophy and business strategy of operating without waste.
  20. Planning
    One of management's primary responsibilities; setting goals and objectives for the company and deciding how to achieve them.
  21. Sarbanes-Oxley Act of 2002 (SOX)
    A congressional act that enhances internal control and financial reporting requirements and establishes new regulatory requirements for publicly traded companies and their independent auditors.
  22. Sustainability
    The ability to meet the needs of the present without compromising the ability of future generations to meet their own needs.
  23. Throughput Time
    The time between buying raw materials and selling finished products.
  24. Treasurer
    The position responsible for raising the firm's capital and investing funds.
Card Set
Managerial Accounting Chapter 1
Chapter 1