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25 Cards in this Set
- Front
- Back
Activity-based costing (ABC)
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A management accounting practice that identifies all of an organization's major operating activities (both production and nonproduction), traces costs to those activities, and then assigns costs to the products or services that use the resources and services supplied by the activities.
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Active-based management (ABM)
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An approach to managing an organization that identifies all major operating activities, determines the resources consumed by each of those activities and the cause of the resource usage, categorizes the activities as either adding value to a product or service or not adding value, and seeks to eliminate or reduce nonvalue-adding activities.
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Balanced scorecard
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A framework that links the perspectives of an organization's stakeholder groups to the organization's mission, objectives, resources, and performance measures.
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Benchmarking
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A technique for determining a company's competitive advantage by comparing its performance with that of its best competitors.
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Benchmarks
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Measures of the best practices in an industry.
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Business plan
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A comprehensive statement of how a company will achieve its objectives.
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Continuous improvement
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The management concept that one should never be satisfied with what is, but should instead constantly seek improved efficiency and lower cost through better methods, products, services, processes, or resources.
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Core competency
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The thing a company does best and that gives it an advantage over its competitors.
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Costs of quality
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Both the costs of achieving quality and the costs of poor quality in the manufacture of a product or the delivery of a service.
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Just-in-time (JIT) operating philosophy
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A management tool aimed at improving productivity and eliminating waste by requiring that all resources--materials, personnel, and facilities--be acquired and used only as needed.
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Management accounting
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The process of identifying, measuring, accumulating, analyzing, preparing, interpreting, and communicating information that management uses to plan, evaluate, and control an organization and to ensure that its resources are used and accounted for properly.
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Mission statement
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A description of the fundamental way in which a business will achieve its goal of increasing the value of the owners' interest in the business.
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Nonvalue-adding activities
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Activities that add cost to a product or service but do not increase its market value.
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Operating objectives
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Short-term goals that outline expectations for the performance of day-to-day operations.
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Outsourcing
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The engagement of other companies to perform a process or service in the value chain that is not among an organization's core competencies.
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Performance measures
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Quantitative tools that gauge an organization's performance in relation to a specific goal or expected outcome.
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Primary processes
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Components of the value chain that add value to a product or service.
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Strategic objectives
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Broad, long-term goals that determine the fundamental nature and direction of a business and that serve as a guide for decision making.
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Supply chain
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The path that leads from the suppliers of the materials from which a product is made to the final consumer. Also called the supply network.
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Support services
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Components of the value chain that facilitate the primary processes but do not add value to a product or service.
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Tactical objectives
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Interim goals that position a business to achieve its long-term strategies.
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Theory of constraints (TOC)
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A management theory that contends that limiting factors, or bottlenecks, occur during the production of any product or service, but that once managers identify such a constraint, they can focus their attention and resources on it and achieve significant improvements.
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Total quality management (TOM)
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A management tool that requires that all parts of a business work together to build quality into the business's prodcut or service.
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Value-adding activities
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Activities that add value to a product or service as perceived by the customer.
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Value chain
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A way of defining a business as a set of primary processes and support services that link together to add value to a business's products or services, thus fulfilling the business's mission and objectives.
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