Accounting Ch. 1

Front 1

Six Sigma

Back 1

a process improvement method that relies on customer feedback and fact-based data gathering and analysis techniques to drive process improvement

Front 2

Chief Financial Officer

Back 2

controller reports to CFO. Member of the top management team who is responsible for providing timely and relevant data to support planning and control activities for preparing financial statements

Front 3

Staff

Back 3

position INDIRECTLY involved in achieving those basic objectives - provide assistance to line position - have no direct authority over line position

Front 4

Line

Back 4

Position DIRECTLY involved in achieving the basic objectives of the organization

Front 5

Organization Chart

Back 5

Shows how responsibility is divided among managers and to show formal lines of reporting and communication or - chain of command

Front 6

Just-in-time (JIT)

Back 6

products are completed just in time to be shipped to customers (lean thinking)

Front 7

Supply Chain Management

Back 7

coordination of business processes across companies to better serve end customers (e.g. making sure products are on the shelves when and where needed)

Front 8

Constraint

Back 8

anything that prevents you from getting more of what you want - machine that has slowest pace in process

Front 9

Theory of Constraints (TOC)

Back 9

based on the insight that effectively managing constraint is key to success - improve the constraint to improve processes

Front 10

Decentralization

Back 10

the delegation of decision making authority throughout an organization by giving managers the authority to make decisions relating to their area of responsibility - spread over many departments

Front 11

Segments

Back 11

managerial accounting focuses more on parts (segments) of a company

Front 12

Performance report

Back 12

a feedback report comparing budgeted to actual results - suggest where operations are not proceeding as planned and where parts of the organization need attention

Front 13

planning and control cycle

Back 13

involves the smooth flow of management activities from planning through directing and motivating controlling then planning again.

center - decision making

Front 14

business process

Back 14

a series of steps that are followed in order to carry out some task in a business

Front 15

Value Chain

Back 15

used when we look at how the functional departments of an organization interact with one another to form the business process

consists of the major business function that add value to products and services

Front 16

Lean Production

Back 16

a PUSH system makes and stores lots of raw materials, work in progress and finished goods

Tying up inventory in work in progress and in workshops waiting to be processed and finished

Front 17

Lean thinking model

Back 17

a five step management approach that organizes resources such as people and machines around the flow of business processes that pulls units through process to customers

1) identify value to customer of product
2) build business process
3) organize manufacturing cells
4) create pull system
5) pursue perfection

Front 18

Six Sigma

Back 18

process improvement method that relies on customer feedback and fact based data gathering and analysis techniques to drive process improvement

Front 19

non-value added activities

Back 19

an activity that adds no worth to the consumer (storing items in process)

Front 20

Enterprise System

Back 20

designed to overcome these problems by integrating data across an organization into a single software system that enables all employees to have simultaneous access to a common set of data

Front 21

Corporate Governance

Back 21

the system by which a company is directed and controlled.

Front 22

Sarbanes-Oxley Act of 2002

Back 22

intended to protect the interests of those who invest in publicly traded companies by improving the reliability and accuracy of corporate financial reports and disclosures.

Front 23

Enterprise risk management

Back 23

a process used by a company to proactively identify and manage those risks

Front 24

Budget

Back 24

a detailed plan for the future, usually expressed in formal quantitative terms

Front 25

Business process

Back 25

a series of steps that re followed to carry out some task in a business

Front 26

control

Back 26

the process of instituting procedures and then obtaining feedback to ensure that all parts of the organization are functioning effectively and moving toward overall company goals.

Front 27

Controller

Back 27

the member of the top managemtn team who is responsible for providing relevant and timely data to managers and for preparing financial statements for external users. the controller reports to the CFO

Front 28

Controlling

Back 28

ensuring that the plan is actually carried out and is appropriately modified as circumstances change

Front 29

Directing and motivating

Back 29

mobilizing people to carry out plans and run routine operations

Front 30

Feedback

Back 30

accounting and other reports that help managers monitor performance and focus on problems and or opportunities that might otherwise go unnoticed

Front 31

Financial accounting

Back 31

the phase of accounting concerned with providing information to stockholders, creditors, and others outside the organization

Front 32

Planning

Back 32

selecting a course of action and specifying how the action will be implemented

Front 33

Managerial accounting

Back 33

the phase of accounting concerned with providing information to managers for use inside the organization

Front 34

Strategy

Back 34

a "game plan" that enables a company to attract customers by distinguishing itself from competitors