a financial statement that shows the firm’s financial position with respect to assets and liabilities at a specific point in time
balance sheet
a comprehensive management control system that balances traditional financial measures with measures of customer service, internal business processes, and the organization’s capacity for learning and growth
balanced scorecard
the continuous process of measuring products, services, and practices against major competitiors or industry leaders
benchmarking
a budgeting process in which lower-level managers budget their departments’ resource needs and pass them up to top management for approval
bottom-up budgeting
a budget that plans and reports investments in major assets to be depreciated over several years
capital budget
a budget that estimates and reports cash flows on a daily or weekly basis to ensure that the company has sufficient cash to meet its obligations
cash budget
the implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis
continuous improvement
the system of governing an organization to ensure accountability, fairness, and transparency in the organization’s relationship with stakeholders
corporate governance
the steps taken to complete a company process
cycle time
the use of organizational culture, group norms, and a focus on goals, rather than rules an procedures, to foster compliance with organizational goals
decentrailzed control
a budget that outlines the anticipated and actual expenses for a responsibility center
expense budget
the use of rules, policies, hierarchy of authority, reward systems, and other formal devices to influence employee behavior and assess performance
hierarchical control
a financial statement that summarizes the firm’s financial performance for a given time interval; sometimes called a profit-and-loss statement
income statement
a set of standards that represent an international concensus of what constitues effective quality management, as outlined by the International Organization for Standardization
ISO 9000 standards
sharing financial information and results with all employees in the organization
open-book management
the systematic process through which managers regulate organizational activities to make them consistent with expectations established in plans, targets, and standards of performance
organizational control
a group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting the quality of their work
quality circle
an organizational unit under the supervision of a single person who is responsible for its activity
responsibility center
a budget that identifies the forecasted and actual revenues of the organization
revenue budget
a quality control approach that emphasizes a relentless pursuit of higher quality and lower costs
Six Sigma
a budgeting process in which middle- and lower-level managers set departmental budget targets in accordance with overall company revenues and expenditures specified by top management
top-down budgeting
a concept that focuses on managing the total organization to deliver quality to customers. Four significant elements of TQM are employee involvement, focus on the customer, benchmarking, and continuous improvement
total quality management (TQM)