ACC 206 Ch 1 Vocab

  1. Decision Making
    Choice from among a set of alternative courses of action designed to achieve some objective
  2. Management Accounting
    The process of identifying, measuring, accumulating, analyzing, preparing, interpreting, and communicating information that helps managers fulfill organizational objectives.
  3. Financial Accounting
    produces information for external parties, such as stockholders, suppliers, banks, and government regulatory agencies.
  4. Scorekeeping
    The classification, accumulation, and reporting of data that helps users understand and evaluate organizational performance.
  5. Attention Directing
    Reporting and interpreting information that helps managers to focus on operating problems, imperfections, inefficiencies, and opportunities.
  6. Problem Solving
    The aspect of accounting that often involves a special study to assess possible courses of action and reccomends the best course to follow
  7. Accounting System
    A formal mechanism for gathering, organizing, and communicating information about an organization's activities.
  8. Generally Accepted Accounting Principals (GAAP)
    A set of standards for every public company's financial reports intended for external users.
  9. International Financial Reporting Standards (IFRS)
    A set of standards that all European countries and more than 100 countries worldwide must comply to
  10. Sarbanes-Oxley Act
    an act in 2002 adding several lengths of regulation, requiring more top-management oversight of a company's accounting policies and procedues.
  11. internal controls
    policies to protect and make the most efficient use of an organization's assets.
  12. Foreign Corrupt Practices Act
    A U.S. Law forbidding bribery and other corrupt practices.
  13. Internal Auditors
    review and evaluate accounting systems including companies' internal controls, and conduct management audits
  14. Management Audits
    reviews to determine whether managers are implementing the policies and procedures specified by top management
  15. cost-benefit balance
    weighing estimated costs against probable benefits - a primary consideration in choosing among accounting systems and methods
  16. behaviorial implications
    the system's effect on the behavior, specifically the decisions, of managers
  17. Planning
    setting objectives for an organization and outlining how it will attain them
  18. Control
    implementing plans and using feedback to evaluate the attainment of objectives
  19. budget
    a quantitative expression of a plan of action
  20. Performance Reports
    provide feedback by comparing results with plans and by highlighting variances
  21. Variances
    deviations from plans
  22. management by exception
    Concentrating on areas that deviate from the plan and ignoring areas that are presumed to be running smoothly.
  23. 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
  24. 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
  25. Line Managers
    directly involved with making and selling the organization's products or services
  26. Staff Managers
    Advisory - support of the line managers
  27. Chief Financial Officer (CFO)
    a top executive who deals with all finance and accounting issues, and oversees the accounting function in most organizations.
  28. Treasurer
    a member concerned mainly with the company's financial matters such as raising and managing cash
  29. Controller (Comptroller)
    A member concerned with operating matters such as aiding management decision-making
  30. Certified Public Accountant (CPA)
    independent auditors
  31. chartered accountants (CAs)
    the CPA of other nations
  32. International Accounting Education Standards Board (IAESB)
    sets educational standards for auditors throughout the world
  33. certified management accountant (CMA)
    unlike CPA is designated to internal accounts
  34. Institute of Management Accountants (IMA)
    The largest US professional organization focused on internal accounting. oversees the CMA program.
  35. electronic commerce / e-commerce
    conducting business online
  36. B2B, B2C
    Business to business, Business to consumer
  37. Enterprise Resource Planning (ERP)
    integrated information systems that support all functional areas of a company
  38. eXtensible Business Reporting Language (XBRL)
    xml based accounting language, helping communicate financial information electronically. Influences both external and internal.
  39. business process reengineering
    the fundamental rethinking and radical redesign of business processes to improve performance in areas such as cost, quality, service, and speed.
  40. Computer aided design (CAD)
    to design products that can be manufactured efficiently
  41. computer aided managing (CAM)
    to direct and control production equipment
  42. Computer integrated manufacturing (CIM) systems
    they use CAD, CAM, robots, and computer controlled machines.
  43. 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.
  44. lean manufacturing
    applies continuous process improvements to eliminate waste from the entire enterprise.
  45. 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.
  46. Six Sigma
    a disciplined, data-driven approach to eliminating defects in any process. A continuous process improvement effort designed to reduce cost by improving quality.
  47. ethics
    the field dealing with human conduct in relation to what is right and wrong.
  48. IMA Statement of Ethical Professional Practice
    The IMA's document of ethical standards.
  49. Code of Conduct
    a document specifying the ethical standards of an organization.
  50. Ethical Dilemma
    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.
Card Set
ACC 206 Ch 1 Vocab
Vocab from Chapter 1 for Managerial Accounting 206