Lesson 1

Question 1

Activity-Based Costing (ABC)

Answer 1

A method of allocating overhead based on each product’s use of activities.

Question 2

Balanced Scorecard (BSC)

Answer 2

A performance-measurement approach that uses both financial and non-financial measures that are tied to company objectives to evaluate a company’s operations in an integrated way.

Question 3

Board of Directors (BOD)

Answer 3

The group of officials elected by the shareholders of a corporation or non-profit organization to formulate operating policies, select officers, and otherwise manage the company.

Question 4

Chief Executive Officer (CEO)

Answer 4

The corporate officer who has overall responsibility for managing the business; they delegate parts of that responsibility to other corporate officers.

Question 5

Chief Financial Officer (CFO)

Answer 5

The corporate officer who is responsible for all a company’s accounting and financial issues.

Question 6

Controller

Answer 6

The Financial Officer who is responsible for a company’s accounting records, system of internal control, and preparation of financial statements, tax returns, and internal reports.

Question 7

Corporate Social Responsibility (CSR)

Answer 7

The efforts of a company to employ sustainable business practices with regard to it’s employees and the environment.

Question 8

Just-In-Time (JIT) Inventory

Answer 8

An inventory system in which goods are manufactured or purchased just in time for use.

Question 9

Line Positions

Answer 9

Jobs that are directly involved in a company’s main revenue-generating operating activities.

Question 10

Managerial Accounting

Answer 10

A field of accounting that provides economic and financial information for managers and other internal users.

Question 11

Staff Positions

Answer 11

Jobs that support the efforts of line employees.

Question 12

Theory of Constraints (TOC)

Answer 12

The practice of identifying constraints that impede a company’s ability to provide a good or service, and dealing with the constraints (bottlenecks) to maximize profitability

Question 13

Total Quantity Management (TOQ)

Answer 13

Systems implemented to reduce defects in finished products with the goal of achieving zero defects.

Question 14

Treasurer

Answer 14

The Financial Officer who is responsible for the custody of a company’s funds and for maintaining it’s cash position.

Question 15

Management Functions

Answer 15

Planning, Directing & Controlling

Question 16

Supply Chain

Answer 16

All activities from the receipt of an order to the delivery of a product or service.

Question 17

Value Chain

Answer 17

All activities associated with providing a product or service.

Question 18

Directing [Management Function]

Answer 18

Besides coordinating a company’s diverse activities; directing also involves selecting executives, appointing managers & supervisors, & hiring and training employees.

Question 19

Planning [Management Function]

Answer 19

_Future Oriented
_Establish Objectives
_Key Objective

Question 20

Controlling [Management Function]

Answer 20

Process of keeping company’s activities on track.