Key Terms Ch 16 Flashcards
Procedures used to verify accounting reports and statements.
Accounting Audits
A method of cost accounting designed to identify streams of activity and then to allocate costs across particular business processes according to the amount of time employees devote to particular activities.
Activity Based Costing (ABC)
A frank and open-minded discussion of four basic questions aimed at continuous improvement.
After-Action Review
The values of the various items the corporation owns.
Assets
Control system combining four sets of performance measures: financial, customer, business process, and learning and growth.
Balanced Scorecard
A report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders’ equity.
Balance Sheet
the process of investigating what is being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences; also called budgetary controlling.
Budgeting
The use of rules, regulations, and authority to guide performance.
Bureaucratic Control
Control based on the norms, values, shared goals, and trust among group members.
Clan Control
The control process used while plans are being carried out, including directing, monitoring, and fine-tuning activities as they are performed.
Concurrent Control
Any process that directs the activities of individuals toward the achievement of organizational goals.
Control
A liquidity ratio that indicates the extent to which short-term assets can decline and still be adequate to pay short-term liabilities.
Current Ratio
A leverage ratio that indicates the company’s ability to meet its long-term financial obligations.
Debt-Equity Ratio
An evaluation conducted by one organization, such as a CPA firm, on another.
External Audit
Control that focuses on the use of information about previous results to correct deviations from the acceptable standard.
Feedback control
