Managerial Accounting - Ch 1

Front 1

Managerial accounting

Back 1

The form of accounting
concerning providing information
to managers for use in planning
and controlling operations and
for decision making.

Front 2

Financial accounting

Back 2

The form of accounting
concerning providing
information to shareholders,
creditors, and others outside
the organization.

Front 3

Planning

Back 3

Developing goals and specifying
how to achieve them.

Front 4

Decision making

Back 4

Selecting a course of action
from among alternatives.

Front 5

Budget

Back 5

A quantitative plan for acquiring
and using financial and other
resources over a specified future
time period.

Front 6

Directing and motivating

Back 6

Mobilizing people to carry out
plans and run routine operations.

Front 7

Controlling

Back 7

Gathering feedback to ensure
that the plan is being properly
executed or modified as necessary.

Front 8

Controller

Back 8

The manager in charge of the
accounting department in an
organization.

Front 9

Performance reports

Back 9

Detailed reports prepared on a
periodic basis that compare
budgeted data to actual data.

Front 10

Planning and control cycle

Back 10

The flow of management
activities through planning,
directing and motivating, and
controlling, and then back to
planning again.

Front 11

Strategy

Back 11

A game plan that enables a
company to attract and retain
customers by distinguishing itself
from competitors.

Front 12

Segments

Back 12

Any parts of an organization
that can be evaluated
independently of other parts
and about which the manager
seeks financial data.

Front 13

Decentralization

Back 13

The delegation of decision
making throughout an
organization by providing
managers at various operating
levels with the authority to make
key decisions relating to their
areas of responsibility.

Front 14

Organization chart

Back 14

A diagram of a firm’s organizational
structure that depicts formal lines
of reporting, communication, and
responsibility between managers.

Front 15

Staff position

Back 15

A job position that is only indirectly
related to the achievement of the
organization’s basic objectives.
Such positions are supportive in
nature in that they provide service
or assistance to line positions or to
other staff positions.

Front 16

Line position

Back 16

A job position that is directly
related to the achievement
of the organization’s basic
objectives.

Front 17

Business process

Back 17

A series of steps that are
followed to carry out some task
or activity in a business.

Front 18

Just-in-time (JIT) production

Back 18

A system in the lean production
model where production is not
initiated until a customer has
ordered a product.

Front 19

Value chain

Back 19

Consists of the major business
functions that add value to a
company’s products and services.

Front 20

Enterprise system

Back 20

A software system designed to
overcome problems in data
duplication, inconsistencies, and
errors by integrating data across
an organization into a single
software system.

Front 21

Enterprise risk management

Back 21

A process used by a company to
proactively identify and manage
foreseeable risks.

Front 22

Corporate governance

Back 22

A system by which a company
is directed and controlled.

Front 23

Corporate social
responsibility

Back 23

A concept whereby
organizations consider the
needs of all stakeholders when
making decisions.