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Definition
| The Committee of Sponsoring Organizations of the Treadway Commission |
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Term
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Definition
| Management by Objective: is a systematic method for linking organizational strategies and goals to their implementation. |
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Term
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| Economic Value Added an estimate of a firm's economic profit – being the value created in excess of the required return of the company's investors |
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| Market Value Added: is the difference between the market value of capital (debt plus equity) and the capital contributed by investors(i.e.book value of debt plus equity) A positive MVA means that the company has increased the value of capital contributed by investors, thus creating shareholder wealth) |
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Term
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Definition
S---Strengths
W---Weaknesses
O---Opportunities
T---Threats
is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats |
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Term
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Definition
| Just-in-time is a production system where raw materials are not stored in inventory. They are delivered directly to the factory floor by vendor "just as" they are needed in the production process. |
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Term
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Definition
| Work-in-process Once production is begun, costs are accumulated in the work-in-process account until the product is finished and transferred to the finished goods inventory. WIP is not used in a JIT production system |
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Term
| SMA 2A, Management Accounting Glossary, defines an ABC system as on that displays the following characteristics: (The acronym IDEDA can be used as a memory aid) |
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Definition
I---Identify Causal Relationship+relationships between cost incurrence and activities
D---Determine Driver+of activities
E---Establish Cost Pools+homogeneous cost pools related to individual drivers
D---Determine Cost Ratio+predetermined cost ratio for each activity
A---Apply Costs+applies the accumulated costs in the cost pools to the cost objects(products) on the basis of resources consumed as determined by the amount (units) of cost driver used |
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Term
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Definition
| Theory of Constraints-E.M. Goldratt 1980s based on the idea that an organization has a single goal, which is achieved through a complex system of linked activities. Focuses on identifying and addressing variables--called constraints--that have a significant effect on global performance |
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Term
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Definition
| Activity based Management: a generic term used to describe the use of activity based information to improve business performance |
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| Ethical questions are tested on three levels. First to identify and discuss which of the four IMA standards (CCIC) have been violated. Second, to recommend a course of action (PROORO steps). Third is to recognize and discuss corporate code of ethics and related reporting responsibilities. What are the four IMA standards (CCIC) |
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Definition
C--Competence
C--Confidentiality
I--Integrity
C--Credibility |
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Term
| Ethical questions are tested on three levels. First to identify and discuss which of the four IMA standards (CCIC) have been violated. Second, to recommend a course of action (PROORO steps). Third is to recognize and discuss corporate code of ethics and related reporting responsibilities. What is the acronym PROORO? |
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Definition
P---Policy of the Entity
R---Report One Step Above Participants
O---Objective Advisor
O---Own Attorney
R---Resignation and Informative Memorandum
O---Outside Communications Questions (Communication to outside parties or the legal authorities is not usually permissible unless there is an affirmative legal duty |
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Term
| Internal Control Objectives fall into three categories (REC) what are they? |
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Definition
R---Reliability of financial reporting
E---Effectiveness and efficiency of operations
C---Compliance with applivable laws and regulations |
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Term
| Internal control consists of five interrelated components, which can be represented with the acronym CRIME |
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Definition
C---Control Activities
R---Risk Assessment
I---Information and Communication
M---Monitoring
E---Control Environment |
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