Term
| Accounting Information System |
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Definition
Process of gathering, organizing, and
Communicating financial information |
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Term
| Influences on Accounting Systems |
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Definition
| Generally accepted accounting principles (GAAP), Foreign Corrupt Practices Act, Internal controls, Internal auditors, Management audits, Sarbanes-Oxley Act |
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Term
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Definition
| Trust, reliability, and integrity |
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Term
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Definition
| The purposeful choice from among a set of alternative courses of action designed to achieve some objective |
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Term
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Definition
| Setting objectives and outlining how the objectives will be obtained. |
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Term
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Definition
| Implementing plans and using feedback to evaluate the attainment of objectives. |
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Term
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Definition
| quantitative expression of a plan of action |
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Term
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Definition
| Compare actual results with budgeted amounts, provide feedback by comparing results with plans, highlight variances |
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Term
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Definition
| (No Sales) Product development, (Sales Growth) Intro to market, (Stable Sales Level) Mature Market, (Low sales - No sales) Phase-out product |
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Term
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Definition
| Customer focus, service, R&D, Product and Service Process Design, Production, Marketing, Distribution |
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Term
| Management's role as internal consultant |
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Definition
| Collect and compiles information, prepares standardized reports, then interprets and analyzes information and is involved in decision making |
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Term
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Definition
| Planning for control, Reporting and interpreting, Evaluating and consulting, Tax administration, Government reporting, Protection of assets, Economic appraisal |
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Term
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Definition
| Provision of capital, Investor relations, Short-term financing, Banking and custody, Credits and collections, Investments, Risk management (insurance) |
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Term
| CMAs must pass a four-part examination: |
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Definition
| 1. Business Analysis 2. Management accounting and reporting 3.Strategic Management, and 4. Business Applications. |
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Term
| Management Accounting Change Drivers |
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Definition
Shift from a manufacturing-based
to a service-based economy, Increased global competition, Advances in technology, Changes in business processes |
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Term
| Examples of Business process reengineering: |
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Definition
| Just-in-time (JIT) philosophy, Lean manufacturing, Computer-integrated manufacturing, Six sigma |
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Term
The Institute of Management Accountants (IMA)
Statement of Ethical Professional Practice for
Management Accounting Members
Requires members to adhere
to a code of conduct regarding: |
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Definition
| Competence,Confidentiality,Integrity, and Credibility. |
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Term
| Ethical dilemmas - Managers must choose an alternative and there are: |
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Definition
| Significant value conflicts among differing interests. Real alternatives that are all justifiable, and Significant consequences on stakeholders in the situation. |
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Term
| Unethical Behavior Temptations |
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Definition
1) Emphasis on short-term results:
Pressure to meet expected profit numbers. 2) Ignoring the small stuff:
Large misdeeds often result from many small ones. 3) Economic cycles: A downturn market can reveal what an upturn market conceals. Vigilance in all stages of economic markets maintains high ethical standards. 4) Accounting rules: Avoid creative interpretations of the rules. Practice full and fair disclosure to convey company’s performance. |
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Term
| Attention-directing questions |
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Definition
| Involve reporting and interpreting information that help managers to focus on operating problems, imperfections, inefficiencies, and opportunities. |
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Term
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Definition
| Those who use accounting information for long-range planning or special, nonrecurring decisions are: |
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Term
| What are the characteristics of service organizations, either profit-seeking or decision making? |
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Definition
| They have intensive labor, ill-defined output, and no inventories. |
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Term
| Staff departments handle the: |
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Definition
| support work for the line departments.Staff departments provide support for manufacturing, production, and operations departments. For example, they handle quality control, employee benefits, and marketing activities. Staff departments are not involved in the direct production or the manufacturing of the company’s products. |
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Term
| The CPA and CMA designations are issued to accountants after they have: |
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Definition
| completed a college education, met certain work experience requirements, and passed a national examination. |
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Term
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Definition
| The Standards of Ethical Conduct for Management Accountants address the accountant’s requirement to communicate information fairly and without bias, and to disclose relevant information that could influence a user’s understanding of internal accounting reports. This is the standard of: |
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Term
| The standard of integrity |
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Definition
| Deals with the management accountant’s responsibility to avoid conflicts of interest, refrain from interfering with the company’s operating goals, and to shun activities that would discredit the profession of management accounting |
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Term
| Management accounting is: |
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Definition
| The process of identifying, accumulating, preparing, and interpreting accounting information that helps managers attain organizational objectives. |
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Term
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Definition
| is a formal set of steps to gather, organize, and communicate quantitative information about an organization’s activities. Consists of inputs, processes, and outputs used to accumulate financial data and turn it into useful information that is communicated to decision makers. |
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Term
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Definition
| is the process by which external users obtain and use accounting information for their lending, investing, and monitoring decisions. |
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Term
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Definition
| is an investigation by management of the most significant variances listed on a performance report. The ______ technique saves managers time in reviewing reports by focusing only on those items whose actual results are materially different from planned results. |
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Term
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Definition
| The __________ is a set of business activities that enhance an organization’s services and products. |
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Term
| Management accounting is: |
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Definition
| The process of identifying, accumulating, preparing, and interpreting accounting information that helps managers attain organizational objectives. |
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Term
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Definition
| A _______ is a process where policies and practices created by top executives are reviewed for effectiveness. |
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Term
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Definition
| The manufacturing philosophy to reduce waste and nonvalue-added activities is called the __________ philosophy. Eliminate raw materials and labor waste by rethinking and streamlining manufacturing activities. These techniques also reduce waste and time by removing nonvalue-added tasks from the production process. |
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Term
| Problem-solving questions |
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Definition
| Help users choose among various options by quantifying the likely results of possible courses of action and often recommend the best course to follow. |
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Term
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Definition
| Policies to protect and make the most efficient use of an organization's assets. |
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Term
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Definition
| Reporting and interpreting information that helps managers to focus on operating problems, imperfections, inefficiencies, and opportunities. |
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Term
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Definition
| Organizations that do not make or sell tangible goods. |
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Term
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Definition
| Weighing estimated costs against probable benefits, the primary consideration in choosing among accounting systems and methods. |
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Term
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Definition
| Concentrating on areas that deviate from the plan and ignoring areas that are presumed to be running smoothly. |
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Term
| Enterprise resource planning systems (ERP) |
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Definition
| Integrated information systems that supports all functional areas of the company. |
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Term
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Definition
| An XML-based accounting language that helps communication financial information electronically. Helps make comparisons across companies much simpler. |
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Term
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Definition
| Applying continuous process improvements to eliminate waste from the entire enterprise. |
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