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25 Cards in this Set
- Front
- Back
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Audit Committee
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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.
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Board of Directors
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The body elected by shareholders to oversee the company
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Budget
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Quantitative expression of a plan that helps managers coordinate and implement the plan.
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CFO
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The position hired by the board of directors to oversee the company on a daily basis.
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Controller
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The position responsible for generating financial accounting, managerial accounting, and tax reporting.
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Sarbanes-Oxley Act of 2002 (SOX)
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A congressional act that enhances internal control and financial reporting requirements and establishes new regulatory requirements for publicly traded companies and their independent auditors.
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Total Quality Management (TQM)
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A management philosophy of delighting customers with superior products and services by continually setting higher goals and improving the performance of every business function.
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Cost of Goods manufactured
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The cost of manufacturing the goods that were finished during the period.
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Direct labor
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The cost of compensating employees who physically convert raw materials into the company's products; labor costs that are directly traceable to the finished product.
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Direct Materials
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Primary raw materials that become a physical part of a finished product and whose costs are traceable to the finished product.
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Manufacturing Overhead
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All manufacturing costs other than direct materials and direct labor; also called factory overhead and indirect manufacturing cost.
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Period Costs
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Costs that are expensed in the period in which they are incurred; often called Operating Expenses, or Selling General and Administrative Expenses.
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Sunk Costs
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A cost that has already been incurred.
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Wholesaler
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Merchandising companies that buy in bulk from manufacturers, mark up the prices, and then sell those products to retailers.
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Retailer
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Merchandising company that sells to consumers.
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Annuity
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A stream of equal installments made at equal time intervals.
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Capital Rationing
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Choosing among alternative capital investments due to limited funds.
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Discount rate
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Management's minimum desired rate of return on an investment; also called the hurdle rate and required rate of return.
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post-audit
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The length of time it takes to recover, in net cash inflows to its projected net cash inflows.
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time value of money
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The fact that money can be invested to earn income over time.
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allocation rate
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Total overhead/Total Direct Labor Hours
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cost allocation
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A process of providing relief to shared service organization's cost centers that provide a product or service.
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cost driver
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The unit of an activity that causes the change in activity's cost.
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cost object
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A tangible input for a product manufactured/Service provided, like labor or material.
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cost pool
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An accounting term that refers to groups of accounts serving to express the cost of goods and service allocatable within a business or manufacturing organization.
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