Chapter 1 Managerial Accounting
Business Process
a series of steps that are followed to carry out some task in a business
Performance Report
A report that compares budgeted data to actual data to highlight instances of excellent and unsatisfactory performance.
Constraint
Anything that prevents an organization or individual from getting more of what it wants.
Planning
setting goals for a project & determining how to reach them
Controlling
the process of gathering feedback to ensure that a plan is being properly executed or modified as circumstances change
Theory of Contraints
A management approach that emphasizes the importance of managing contraints
Segment
A part or activity of an organization about which managers would like cost, revenue or profit data
Enterprise Risk Management
A process used by a company to help identify the risks that it faces and to develop responses to those risks that enable the company to be reasonably assured of meeting its goals.
Lean Production
a management approach that organizes resources such as people and machines around the flow of business processes and that only produces units in response to customer orders
Decision Making
Selecting a course of action from competing alternatives
Strategy
A company's "game plan" for attracting customers by distinguishing itself from competitors
Corporate Social Responsibility
A concept whereby organizations consider the needs of all stakeholders when making decisions. It extends beyond legal compliance to include voluntary actions that satisfy stakeholder expectations.
Budget
A detailed plan for the future, usually expressed in formal quantitative terms.
Value Chain
The major business functions that add value to a company's products and services such as research and development, product design, manufacturing, marketing, distribution, and customer service.
Managerial Accounting
The phase of accounting concerned with providing information to managers for use within the organization.
Financial Accounting
The phase of accounting concerned with providing information to stockholders, creditors, and others outside the organization.