Exam 5 Flashcards
(29 cards)
control cycle
- set performance standards
- measure performance
- compare performance with standards
- reward successes, correct problems
it is any process that directs the activities of individuals toward the achievement of organizational goals
procedures used to verify accounting reports and statements
accounting audits
a method of cost accounting designed to identify streams of activity and then to allocate costs across particular business processes according to the amount of time employees devote to particular activities
activity based costing (ABC)
a frank and open minded discussion of four basic questions aimed at continuous improvement
after action review
control system combining four sets of performance measures: financial, customer satisfaction, business processes and learning and growth
balanced scorecard
the process of investigating what is being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences
budgeting
the use of rules, regulations and authority to guide performance
bureaucratic control
control based on the norms, values, shared goals and trust among group members
clan control
the control process used while plans are being carried out, including directing, monitoring and finetuning activities as they are performed
concurrent control
any process that directs the activities of individuals toward the achievement of organizational goals
control
a liquidity ratio that indicates the extent to which short term assets can decline and still be adequate to pay short term liabilities
current ratio
a leverage ratio that indicates the company’s ability to meet its long term financial obligations
debt-equity ratio
an evaluation conducted by one organization, such as a CPA firm, on another
external audit
control that focuses on the use of information about previous results to correct deviations from the acceptable standard
feedback control
the control process used before operations begin, including policies, procedures, and rules designed to ensure that planned activities are carried out properly
feedforward control
a periodic assessment of a company’s own planning, organizing, leading and controlling processes
internal audit
an evaluation of the effectiveness and efficiency of various systems within an organization
management audit
focusing on short term earnings and profits at the expense of longer term strategic requirements
management myopia
control based on the use of pricing mechanisms and economic information to regulate activities within organizations
market control
a managerial principle stating that control is enhanced by concentrating on the exceptions to or significant deviations from the expected result or standard
principle of exception
an itemized financial statement of the income and expenses of a company’s operations
profit and loss statement
a depiction of how an organization plans to convert its various assets into desired outcomes
strategy map
price charged by one unit for a good or service provided to another unit within the organization
transfer price
