Week 2 VOCABULARY - MANAGEMENT

Question 1

Accounting

Answer 1

The way an organization collects, organizes, and records financial information for making management decisions; the way to report a company’s transactions and to maintain accountability for its assets and liabilities

Question 2

Accounting System

Answer 2

A formal communications network that supplies relevant information for planning, control, decision-making, and evaluation

Question 3

Acid test ratio

Answer 3

The ratio determining how well the company’s current liabilities can be satisfied by its current assets less inventory

Question 4

Activity-based costing system

Answer 4

An accounting system focused on a production cycle and based on the principles that an output needs activities to produce it and that those activities use certain resources; assigns costs through cost drivers that the activities use to create the outputs

Question 5

Administrative lead time

Answer 5

A measurement used by some organizations of how long it takes to award a contract, starting when a procurement request is received and ending when the contract is awarded.

Question 6

Asset

Answer 6

Something a company owns that has value and that can be sold or used by the company to make products or provide services that can be sold

Question 7

Balance Sheet

Answer 7

Provides detailed information about a company’s assets, liabilities, and shareholder equity.

Question 8

Bottom line

Answer 8

A company’s total earnings or losses over a specific time period, after accounting for costs and expenses; also called net income

Question 9

Burn rate

Answer 9

An average of the estimated costs per month, often based on staffing estimates, used for estimating funding requirements

Question 10

Cash Flow Statement

Answer 10

A statement reporting a company’s inflow and outflow of cash; generally includes operating activities, investing activities, and financing activities

Question 11

Competition

Answer 11

The effort or action of two or more commercial companies to obtain the same business from a third party

Question 12

Contingency planning

Answer 12

Involves “what if?” analysis to look at various situations if certain environmental or economic conditions change

Question 13

Controlling

Answer 13

Monitoring and evaluating how well the team and organizational objectives are pursued and accomplished

Question 14

Current

Answer 14

Current assets are assets which can converted into cash within one year; current liabilities are obligations that a business must pay within one year

Question 15

Current ratio

Answer 15

The ratio of current assets to current liabilities

Question 16

Debt-to-equity ratio

Answer 16

The ratio measuring the relation of debt and shareholder equity used to finance the company’s operations

Question 17

Demand

Answer 17

Describes how buyers behave in the marketplace; the quantity a buyer demands is what a buyer is willing to buy at a particular price.

Question 18

Directing

Answer 18

The management of people and processes to accomplish objectives

Question 19

Economics

Answer 19

The science concerned with making decisions with scarce resources such as labor, capital, goods, and natural resources.

Question 20

Electronic government (e-government)

Answer 20

The use by the government of the Internet and other information technologies, together with the processes and people needed to implement them, to enhance the delivery of information and services to the public and others to make improvements in government operations

Question 21

Equity

Answer 21

The amount of money that would be left if a company sold all of its assets and paid off all of its liabilities; this amount, also called capital or net worth, belongs to the owner(s) of the company

Question 22

FedBiz Opps

Answer 22

A web-based portal (www.fbo.gov) that allows vendors to review federal business opportunities, and buyers to create opportunity notices and awards, using secured accounts.

Question 23

Financial analysis

Answer 23

An assessment of the viability, stability, and profitability of a business

Question 24

General Accepted Accounting Principles (GAAP)

Answer 24

A set of uniform accounting rules for assigning and measuring contract data to accurately represent an organization’s financial condition; non regulatory guidance developed and used by certified public accountants

Question 25

Gross Profit

Answer 25

The subtotal of total revenue made during an accounting period, minus any returns or discounts and the costs of goods sold, before deducting operating expenses

Question 26

Income statement

Answer 26

A report that shows how much revenue a company earned over a specific time period, and the costs and expenses associated with earning that revenue

Question 27

Information science

Answer 27

The field concerned with collecting, organizing, storing, retrieving, and protecting recorded data

Question 28

Intangible assets

Answer 28

Assets whose value comes from a legal claim or additional earning power from a business transaction, such as goodwill, patents, or trademarks

Question 29

Job-order cost system

Answer 29

An accounting system under which the company accounts for output by identifying specific physical units; the costs for each job or contract are accumulated under separate job orders

Question 30

Latency

Answer 30

The delay between when a cost is incurred and when that cost appears in the accounting system

Question 31

Liability

Answer 31

An amount of money owed by a company to another; may require a specific sum of money paid to a particular party at a specified time, or may be indefinite

Question 32

Long-term

Answer 32

Long-term assets are assets that a business cannot easily turn into cash and that are not used within one year; long-term liabilities are liabilities that will mature over one year from the balance sheet date

Question 33

Monopoly

Answer 33

A type of competition that exists when there is only one company in the marketplace and it has no competitors

Question 34

Monopsony

Answer 34

A type of competition that exists when there is only one buyer, such as when certain supplies or services can only be bought by a single entity

Question 35

Net operating income

Answer 35

The subtotal of gross profit minus the operating expenses that a company pays to conduct its business

Question 36

Oligopoly

Answer 36

A type of competition that exists when there are only a few companies in an industry with slight differences in products or services

Question 37

Operational planning

Answer 37

Looks at the near-term goals and identifies how the organization will meet its tactical goals

Question 38

Operations management

Answer 38

A type of management activity that is mostly concerned with the directing and controlling of management functions, which uses customer feedback to improve processes and procedures, to improve the activities or add value to the product or service

Question 39

Organizing

Answer 39

Allocating resources to meet goals identified during the planning process

Question 40

Perfect competition

Answer 40

A type of competition that exists when many companies produce identical goods or services and no one company can influence the market

Question 41

Planning

Answer 41

Preparing the organization for the future

Question 42

Process cost system

Answer 42

An accounting system under which direct costs are charged to a project for more than one contract that are run through the process at the same time, even though the end items may not be identical; at the end of the accounting period, the costs incurred for that process are assigned to the units completed during the period and to the incomplete unit still in production

Question 43

Project management

Answer 43

The discipline of initiating, planning, executing, controlling, and closing the work of a team to achieve specific goals and meet specific success criteria

Question 44

Resource-loaded schedule

Answer 44

A project schedule outlining what tasks will take place, when they are scheduled to begin and end, and what resources are needed to accomplish them

Question 45

Quality control (QC)

Answer 45

The seller’s process of measuring quality performance, comparing it with the standard, and acting on the difference. All those tasks done within an organization to improve the quality of its output. This would include inspection systems set up by a seller to monitor its own output at key intervals in the contracting process.

Question 46

Solvency ratio

Answer 46

A ratio measuring the company’s ability to meets its current and long-term obligations; also called liquidity ratio

Question 47

Statistical process control

Answer 47

An operations management tool that looks at identifying and preventing quality problems

Question 48

Strategic planning

Answer 48

Looks at long-term goals and objective, typically based on the organization’s mission statement

Question 49

Supply

Answer 49

Indicates how sellers behave in the marketplace; the quantity supplied is what is available to be bought at a particular price

Question 50

Supply chain

Answer 50

All the tasks associated with taking raw materials and transforming them into the final product to deliver to the customer

Question 51

Supply chain management

Answer 51

A process of integrating goods, services, and information to meet the customer’s needs; involves managing the activities to produce and deliver a product or service from suppliers and their vendors to the customer

Question 52

Tactical planning

Answer 52

Focuses on short-term goals and involves evaluating economic and environmental issues to meet the strategic plan’s goals

Question 53

Tangible assets

Answer 53

Focuses on short-term goals and involves evaluating economic and environmental issues to meet the strategic plan’s goals

Question 54

Time-phased budget

Answer 54

A “road map” estimating how much funding a contract will require over time

Question 55

Work breakdown structure

Answer 55

A top-down, hierarchical or tree-structured description of the work to be accomplished as viewed from the standpoint of outputs or products work breakdown structure

Question 56

Work package

Answer 56

A group of related tasks within a project; the smallest unit of work that a project can be broken down to when creating the Work Breakdown Structure