ch1 vocab

Question 1

audit committee

Answer 1

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

Question 2

board of directors

Answer 2

the body elected by shareholders to oversee the company

Question 3

budget

Answer 3

quantitative expression of a plan that helps managers coordinate and implement the plan

Question 4

certified management accountant

Answer 4

(CMA) a professional a professional certification issued by the IMA to designate expertise in the areas of managerial accounting, economics, and business finance

Question 5

chief executive officer

Answer 5

(CEO) the position hired by the board of directors to over see the company on a daily basis

Question 6

chief financial officer

Answer 6

(CFO) the position responsible for all of the company’s financial concerns

Question 7

chief operating officer

Answer 7

(COO) the position responsible for overseeing the company’s operations

Question 8

controller

Answer 8

the position responsible for general financial accounting, managerial accounting, and tax reports

Question 9

controlling

Answer 9

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

Question 10

cost-benefit analysis

Answer 10

weighing costs against benefits to help make decistions

Question 11

cross-functional teams

Answer 11

corporate teams whose members represent various functions of the organisation:
R&D
Design
Production
Marketing
Distribution
Customer Service

Question 12

decision making

Answer 12

identifying possible courses of action and choosing among them

Question 13

directing

Answer 13

one of management’s primary responsibilities; running the company on a day-to-day basis

Question 14

enterprise resource planning

Answer 14

(ERP) software systems that can integrate all of a company’s worldwide functions,departments, and data into a single system

Question 15

extensible business reporting language

Answer 15

(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

Question 16

international financial reporting standards

Answer 16

(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

Question 17

institute of management accountants

Answer 17

(IMA) the professional organization that promotes the advancement of the management accounting profession

Question 18

internal audit function

Answer 18

the corporate function charged with assessing the effectiveness of the company’s internal controls and risk management policies

Question 19

ISO 9001:2008

Answer 19

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

Question 20

just-in-time

Answer 20

(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

Question 21

lean thinking

Answer 21

a philosophy and business strategy of operating without waste

Question 22

planning

Answer 22

one of management’s primary responsibilities; setting goals and objectives for the company and deciding how to achieve them

Question 23

sarbanes-oxley act of 2002

Answer 23

(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

Question 24

sastainability

Answer 24

the ability to meet the needs of the present without compromising the ability to future generations to meet their own needs

Question 25

throughput time

Answer 25

the time between buying raw materials and selling finished products

Question 26

treasurer

Answer 26

the position responsible for raising the firm’s capital and investing funds

Question 27

triple bottom line

Answer 27

evaluating a company’s performance not only by its ability to generate economic profits, but also by its impact on people and the planet

Question 28

total quality management

Answer 28

(TQM) a management philosophy of delighting customers with superior products and services by continually setting higher goals and improving the performance of every business function