Managerial Accounting Chapter 1 – Vocab – Flashcards
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Budget
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A detailed plan for the future that is usually expressed in formal quantitative terms.
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Business Process
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A series of steps that are followed in order to carry out some task in a business.
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Constraint
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Anything that prevents you from getting more of what you want.
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Controlling
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The process of gathering feedback to ensure that a plan is being properly executed or modified as circumstances change.
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Corporate Social Responsibility
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A concept whereby organizations consider the needs of all stake-holders when making decisions.
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Decision Making
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Selecting a course of action from competing alternatives.
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Enterprise Risk Management
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A process used by a company to identify its risks and develop responses to them that enable it to be reasonably assured of meeting its goals.
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Financial Accounting
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The phase of accounting that is concerned with reporting historical financial information to external parties such as stockholders, creditors, and regulators.
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Lean Production
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A management approach that organizes resources such as people and machines around the flow of business processes and that only produces units in response to customer orders.
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Managerial Accounting
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The phase of accounting that is concerned with providing information to managers for use within the organization.
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Performance Report
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A report that compares budgeted data to actual data to highlight instances of excellent and unsatisfactory performance.
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Planning
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The process of establishing goals and specifying how to achieve them.
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Segment
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A part or activity of an organization about which managers would like cost, revenue, or profit data.
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Strategy
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A company's "game plan" for attracting customers by distinguishing itself from competitors.
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Theory of Constraints
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A management approach that emphasizes the importance of managing constraints.
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Value Chain
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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.
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Corporate Governance
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The system by which a company is directed and controlled.
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Detective Control
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A control that detects undesirable events that have already occurred.
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Internal Control
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A process designed to provide reasonable assurance that objectives are being achieved.
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Preventive Control
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A control that deters undesirable events from occurring.
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Sarbanes-Oxley Act of 2002
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A law intended to protect the interests of those who invest in publicly traded companies by improving the reliability and accuracy of corporate financial reports and discloures.
