Managerial Accounting Chapter 1 Terms

Front 1

strategy

Back 1

-"game plan"
-attracts customers
-distinguishes itself from competitors

Front 2

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

Back 2

strategy

Front 3

Decentralization

Back 3

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

Front 4

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

Back 4

Decentralization

Front 5

organization chart

Back 5

-shows how responsibility is divided among managers
-shows chain of command.

Front 6

shows how responsibility is divided among managers and shows formal lines of reporting and communication, or chain of command.

Back 6

organization chart

Front 7

chain of command

Back 7

formal lines of reporting and communication

Front 8

formal lines of reporting and communication

Back 8

chain of command

Front 9

customer intimacy

Back 9

"You should choose us because we understand and respond to your individual needs"

Front 10

"You should choose us because we understand and respond to your individual needs"

Back 10

customer intimacy

Front 11

operational excellence

Back 11

"You should choose us because we can deliver products and services
-faster
-more conveniently
-at a lower price than our competitors"

Front 12

"You should choose us because we can deliver products and services faster, more conveniently and at a lower price than our competitors"

Back 12

operational excellence

Front 13

product leadership

Back 13

"You should choose us because we offer higher quality products than our competitors"

Front 14

"You should choose us because we offer higher quality products than our competitors"

Back 14

product leadership

Front 15

line position

Back 15

person is directly involved in achieving the basic objectives of the organization

Front 16

person is directly involved in achieving the basic objectives of the organization

Back 16

line position

Front 17

staff position

Back 17

person is only indirectly involved in achieving the basic objectives of a company

Front 18

person is only indirectly involved in achieving the basic objectives of a company

Back 18

staff position

Front 19

Chief Financial Officer (3)

Back 19

Responsible for providing...
-timely and relevant data
...to support...
-planning and control activities
...and for preparing...
-financial statements

Front 20

responsible for providing timely and relevant data to support planning and control activities and for preparing financial statements for external users.

Back 20

Chief Financial Officer

Front 21

controller

Back 21

-manger
-often runs the accounting department
-reports directly to the CFO

Front 22

a manger that often runs the accounting department and reports directly to the CFO

Back 22

controller

Front 23

business process (2)

Back 23

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

Front 24

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

Back 24

business process

Front 25

value chain

Back 25

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

Front 26

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

Back 26

value chain

Front 27

Raw materials

Back 27

the materials used to make a product

Front 28

the materials used to make a product

Back 28

Raw materials

Front 29

work in process

Back 29

inventories that consist of units of product that are only partially complete and will require further work before they are ready for sale so a customer

Front 30

inventories that consist of units of product that are only partially complete and will require further work before they are ready for sale so a customer

Back 30

work in process

Front 31

finished goods

Back 31

inventories that consist of units of product that have been completed but have not yet been sold to customers

Front 32

lean thinking model

Back 32

-five-step management approach
-organizes resources around the flow of business processes
-pulls units in response to customer orders

Front 33

management approach that organizes resources such as people and machines around the flow of business processes and that pulls units through these processes in response to customer orders

Back 33

lean thinking model

Front 34

What are the five steps of the lean thinking model?

Back 34

1. Identify value in specific products/services.
2. Identify the business process that delivers value.
3. Organize work arrangements around the flow of the business process.
4. Create a pull system that responds to customer orders.
5. Continuously pursue perfection in the business process.

Front 35

Just-in-time

Back 35

A production and inventory control system in which materials are purchased and units are produced only as needed to meet actual customer demand

Front 36

A production and inventory control system in which materials are purchased and units are produced only as needed to meet actual customer demand

Back 36

Just-in-time

Front 37

supply chain management

Back 37

-the coordination of business processes across companies
-to better serve end consumers

Front 38

used to refer to the coordination of business processes across companies to better serve end consumers

Back 38

supply chain management

Front 39

constraint

Back 39

anything that prevents you from getting more of what you want

Front 40

anything that prevents you from getting more of what you want

Back 40

constraint

Front 41

Theory of Constraints

Back 41

based on the insight that effectively managing the constraint is a key to success

Front 42

based on the insight that effectively managing the constraint is a key to success

Back 42

Theory of Constraints

Front 43

Six Sigma

Back 43

Relies on...
-customer feedback
-fact-based data gathering and analysis techniques
...to drive process improvement

Front 44

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

Back 44

Six Sigma

Front 45

DMAIC

Back 45

Define, Measure, Analyze, Improve, and Control

Front 46

non-value-added activities

Back 46

activities that customers are not willing to pay for because they add no value

Front 47

activities that customers are not willing to pay for because they add no value

Back 47

non-value-added activities

Front 48

corporate governance

Back 48

the system by which a company is directed and controlled

Front 49

the system by which a company is directed and controlled

Back 49

corporate governance

Front 50

Sarbanes-Oxley Act of 2002

Back 50

-protects the interests of those who invest in publicly traded companies
-improves the reliability and accuracy of corporate financial reports and disclosures

Front 51

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

Back 51

Sarbanes-Oxley Act of 2002

Front 52

Enterprise risk management (3)

Back 52

-a process used by a company to identify the risks that it faces
-develop responses to those risks
-enable the company to be reasonably assured of meeting its goals

Front 53

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

Back 53

Enterprise risk management

Front 54

Corporate social responsibility

Back 54

organizations consider the needs of all stakeholders when making decisions

Front 55

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

Back 55

Corporate social responsibility