Chapter 19 Flashcards
(20 cards)
a performance-measurement approach that uses both financial and non-financial measures, tied to company objectives, to evaluate a company’s operations in an integrated fashion
balanced scorecard
a method of allocating overhead based on each product’s use of activities in making the product
activity-based costing (ABC)
the group of officials elected by the stockholders of a corporation to formulate operating policies, select officers, and otherwise manage the company
board of directors
corporate officer who has overall responsibility for managing the business and delegates responsibilities to other corporate officers
chief executive officer (CEO)
corporate officer who is responsible for all of the accounting and finance issues of the company
chief financial officer (CFO)
financial officer responsible for a company’s accounting records, system of internal control, and preparation of financial statemtns, tax returns, and internal reports
controller
total cost of work in process less the cost of the ending work in process inventory
cost of goods manufactured
the work of factory employees that can be physically and directly associated with converting raw materials into finished goods
direct labor
raw materials that can be physically and directly associated with manufacturing the finished product
direct materials
software that provides a comprehensive, centralized, integrated source of info used to manage all major business processes
enterprise resource planning (ERP) system
work of factory employees that has no physical association with the finished product, or for which is is impractical to trace the costs to the goods produced
indirect labor
raw materials that do not physically become part of the finished product or can’t be traced because their physical association with the finished product is too small
indirect materials
inventory system in which goods are manufactured or purchased just in time for use
just-in-time (JIT) inventory
jobs that are directly involved in a company’s primary revenue-generating operating activities
line positions
a field of accounting that provides economic and financial information for managers and other internal users
managerial accounting
manufacturing costs that are indirectly associated with manufacture of the finished product
manufacturing overhead
costs that are matched with the revenue of a specific time period and charged to expense as incurred
period costs
costs that are a necessary and integral part of producing the finished product
product costs
jobs that support the efforts of line employees
staff positions
a specific approach used to identify and manage constraints in order to achieve the company’s goals
theory of constraints
