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Managerial Accounting

Terms in this set (27)

Activity-based costing (ABC)
A method of allocating overhead based on each products use of activities in making the product
Balanced scorecard
A performance measure approach that uses both financial and non financial measures, tied to company objectives, to evaluate a company's operations in an integrated fashion
Board of directors
The group of officials elected by the stockholders of a corporation to formulate operating policies and select officers who will manage the company.
Chief executive officer (CEO)
Corporate officer who has overall responsibility for managing the business and delegates responsibilities to other corporate officers
Chief financial officer (CFO)
Corporate officer who is responsible for all the accounting and finance issues of the company
Controller
Financial officer responsible for a company's accounting records, system of internal control, and preparations of financial statements, tax returns and internal reports
Corporate social responsibility
The efforts of a company to employ sustainable business practices with regard to its employees, society, and the environment
Cost of goods sold manufacturing
Total cost of work in process less the cost of the ending work in process inventory
Direct Labor
The work of factory employees that can be physically and directly associated with converting raw materials into finished goods.
Enterprise resource planning (ERP) system
Software that provides a comprehensive, centralized, integrated source of information used to manage all major business processes
Indirect labor
Work of factory employees that has no physical association with the finished product of for which it is impractical to trace the costs to the goods produced
Indirect materials
Raw materials that do not physically become part of the finished product or for which it is impractical to trace to the finished product because their physical association with the finished product is too small
Just-in-time (JIT) inventory
Inventory system in which goods are manufactured or purchased just in time for sale
Line positions
Jobs that are directly involved in a company's primary revenue-generating operating activities
Managerial Accounting
A field of accounting that provides economic and financial information for managers and other internal users
Manufacturing overhead
Manufacturing costs that are indirectly associated with the manufacture of the finished product
Period costs
Costs that are matched with the revenue of a specific time period and charged to expense as incurred
Product costs
Costs that are a necessary and integral part of producing the finished product
Sarbanes-Oxley Act (SOX)
Law passed by congress intended to reduce unethical corporate behavior
Staff positions
Jobs that support the efforts of line employees
Theory of Constraints
A specific approach used to identify and manage constraints in order to achieve the company's goals
Total cost of works in porcess
Cost of the beginning work in process + total manufacturing costs for the current period
Total manufacturing costs
The sum of direct materials, direct labor, and manufacturing overhead incurred in the current period
Total Quality Management (TQM)
Systems implemented to reduce defects in finished products with the goal of achieving zero defects
Treasurer
Financial officer responsible for custody of a company's funds and for maintaining its cash position
Triple bottom line
The evaluation of a company's social responsibility performance with regard to people, planet, and profit
Value Chain
All business processes associated with providing a product or performing a service
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