ch1 vocab Flashcards
audit committee
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
board of directors
the body elected by shareholders to oversee the company
budget
quantitative expression of a plan that helps managers coordinate and implement the plan
certified management accountant
(CMA) a professional a professional certification issued by the IMA to designate expertise in the areas of managerial accounting, economics, and business finance
chief executive officer
(CEO) the position hired by the board of directors to over see the company on a daily basis
chief financial officer
(CFO) the position responsible for all of the company’s financial concerns
chief operating officer
(COO) the position responsible for overseeing the company’s operations
controller
the position responsible for general financial accounting, managerial accounting, and tax reports
controlling
one of management’s primary responsibilities; evaluating the results of business operations against the plan and making adjustments to keep the company pressing toward its goals
cost-benefit analysis
weighing costs against benefits to help make decistions
cross-functional teams
corporate teams whose members represent various functions of the organisation: R&D Design Production Marketing Distribution Customer Service
decision making
identifying possible courses of action and choosing among them
directing
one of management’s primary responsibilities; running the company on a day-to-day basis
enterprise resource planning
(ERP) software systems that can integrate all of a company’s worldwide functions,departments, and data into a single system
extensible business reporting language
(XBRL) a data tagging system that enables companies to release financial and business information in a format that can be quickly, efficiently, and cost-effectively accessed, sorted, and analyzed over the internet
international financial reporting standards
(IFRIS) the SEC has recently moved to adopt IFRIS for all publicly traded companies within the next few years. In many instances, IFRIS vary from GAAP
institute of management accountants
(IMA) the professional organization that promotes the advancement of the management accounting profession
internal audit function
the corporate function charged with assessing the effectiveness of the company’s internal controls and risk management policies
ISO 9001:2008
a quality-related certification issued by the ISO. firms may become ISO 9001:2008 certified by complying with the quality management standards set forth by the ISO and undergoing extensive audits of their quality management processes
just-in-time
(JIT) an inventory philosophy were a product is manufactured just in time to fill customer orders. Companies adopting JIT are able to substantially reduce the quality of raw materials and finished product kept on hand
lean thinking
a philosophy and business strategy of operating without waste
planning
one of management’s primary responsibilities; setting goals and objectives for the company and deciding how to achieve them
sarbanes-oxley act of 2002
(SOX) a congressional act that
establishes new financial reporting requirements and internal controls and establishes new regulatory requirements for publicly traded companies and their independent auditors
sastainability
the ability to meet the needs of the present without compromising the ability to future generations to meet their own needs
