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8/2/2019 Mowen3e Glossary--Ch 01
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Cornerstones of Managerial Accounting, 3rd edition
Mowen/Hansen/Heitger
Chapter 1Glossary Terms & Definitions
Certified Internal Auditor (CIA) The CIA has passed a comprehensive
examination designed to ensure technical competence and has two years
experience.
Certified Management Accountant (CMA) A certified management accountant
has passed a rigorous qualifying examination, met an experience requirement,
and participates in continuing education.
Certified Public Accountant (CPA) A certified accountant who is permitted (by
law) to serve as an external auditor. CPAs must pass a national examination and
be licensed by the state in which they practice.
Continuous improvement Searching for ways to increase the overall efficiency
and productivity of activities by reducing waste, increasing quality, and reducing
costs.
ControllerThe chief accounting officer in an organization.
Controlling The managerial activity of monitoring a plans implementation and
taking corrective action as needed.
Decision making The process of choosing among competing alternatives.
Ethical behaviorChoosing actions that are right, proper, and just.
Financial accounting A type of accounting that is primarily concerned with
producing information for external users.
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Lean accounting An accounting practice that organizes costs according to the
value chain by focusing primarily on the elimination of waste. The objective is to
provide information to managers that support this effort and to provide financial
statements that better reflect overall performance, using financial and
nonfinancial information.
Line positions Positions that have direct responsibility for the basic objectives of
an organization.
Managerial accounting The provision of accounting information for a companys
internal users.
Planning A management activity that involves the detailed formulation of action
to achieve a particular end.
Publicly traded companies Companies that issue stock traded on U.S. stock
exchanges to which the Sarbanes-Oxley Act applies.
Sarbanes-Oxley Act (SOX) Passed in 2002 in response to revelations of
misconduct and fraud by several well-known firms, this legislation established
stronger governmental control and regulation of public companies in the United
States, from enhanced oversight (PCAOB), to increased auditor independence
and tightened regulation of corporate governance.
Staff positions Positions that are supportive in nature and have only indirect
responsibility for an organizations basic objectives.
Total quality management A management philosophy in which manufacturers
strive to create an environment that will enable workers to manufacture perfect
(zero-defect) products.
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TreasurerThe individual responsible for the finance function; raises capital and
manages cash and investments.
Value chain The set of activities required to design, develop, produce, market,
and deliver products and services to customers.
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