Managerial Accounting Chapter 1 Exam verified solutions and explanations.

Managerial Accounting Chapter 1 Exam verified solutions and explanations automation - Correct Answers: method of using systems such as computers or robots to operate different processes, and machinery to improve efficiencies and lower direct labor costs balanced scorecard - Correct Answers: tool used to evaluate performance using qualitative and nonqualitative measures board of directors - Correct Answers: group of individuals elected by the shareholders of a company with the role of placing management, supervising management, and making key decisions on major issues of the company bribery - Correct Answers: when an organization or representative of an organization gives money or other financial benefits to another individual, business, or official in order to gain favor or to manipulate a business decision budget analyst - Correct Answers: someone who arranges and manages the master budget and compares master budget projections to actual results cash-management accountant - Correct Answers: someone with responsibilities that include transferring monies between accounts, monitoring deposits and payments, reconciling cash balances, creating and tracking cash forecasts, and performing all other cash-related financial processes Certified Fraud Examiner (CFE) - Correct Answers: signifies proven proficiency in fraud prevention, detection, and deterrence; requirements include bachelor's degree, two years of work-related experience, moral character references, and passing of four separate exams Certified Government Auditing Professional (CGAP) - Correct Answers: designation exclusively for auditors employed throughout the public sector (federal, state, local); requirements are the same as for the CIA, but with a different exam Certified Internal Auditor (CIA) - Correct Answers: credential offered by the Institute of Internal Auditors (IIA) and one of the only certifications accepted worldwide; requirements include a bachelor's degree, two years of work experience in a related field, and passing the three sections of the examination Certified Management Accountant (CMA) - Correct Answers: certification for a specialist in corporate accounting management, including financial analytics, budgeting, and strategic assessment; requires a bachelor's degree, two years of work experience, and successfully passing both parts of the exam Certified Public Accountant (CPA) - Correct Answers: top tier in accounting certifications; in the United States, each state has different educational and experience requirements, and certification requires passing the four-part CPA administered by the American Institute of Certified Public Accountants (AICPA) Chartered Financial Analyst (CFA) - Correct Answers: certification for a career in the finance and investment domains; requirements include a bachelor's degree or four years' experience and passing all three sections of the exam chief executive officer (CEO) - Correct Answers: executive within a company with the highest ranking title who has the overall responsibility for the management of a company; reports to the board of directors chief financial officer (CFO) - Correct Answers: corporation officer who reports to the CEO and oversees all of the accounting and finance concerns of a company collaboration - Correct Answers: working in cross-functional teams and earning the trust and respect of colleagues in order to complete a task commercial awareness - Correct Answers: knowing how a business is run and how it is influenced by the external environment, and knowing and understanding the overall industry within which the business is operating continuous improvement - Correct Answers: ongoing effort to improve processes, products, services, and practices controller - Correct Answers: financial officer of a corporation reporting to the CFO who is responsible for an organization's accounting records, financial statements, tax returns, and internal reporting controlling - Correct Answers: monitoring of the planning objectives that were put into place corporate social responsibility (CSR) - Correct Answers: actions that firms take to assume responsibility for their impact on the environment and social well-being cost accountant - Correct Answers: employee who amasses large sums of data, checking for accuracy and then formulating the cost of raw materials, work in process, finished goods, labor, overhead, and other associated manufacturing costs effective communication - Correct Answers: conveying information in both written and oral forms in a way that the intended audience can understand Enrolled Agent (EA) - Correct Answers: credential focusing on a career in taxation; created by the IRS to signify significant knowledge of the US tax code and the ability to apply the concepts of that code enterprise resource planning (ERP) - Correct Answers: system that helps a company streamline its operations and helps management respond quickly to change evaluating - Correct Answers: comparing actual results against the planned results external user - Correct Answers: someone who relies on the financial statements and annual reports to access information about a company in order to make more informed decisions (e.g., creditor, tax authority and regulator, investor, customer, competitor, and others) Financial Accounting Standards Board (FASB) - Correct Answers: independent, nonprofit organization that sets financial accounting and reporting standards for both public and private sector businesses in the United States that use Generally Accepted Accounting Principles (GAAP) financial analyst - Correct Answers: someone who assists in preparing budgets and tracking actual costs, and performs other tasks that support other management personnel in organizing forecasts and projections Foreign Corrupt Practices Act (FCPA) - Correct Answers: law that specifically prohibits payments to foreign government officials to aid in attaining or retaining business and requires a company to have good internal controls so a slush fund to pay bribes cannot be created and maintained generally accepted accounting principles (GAAP) - Correct Answers: common set of rules, standards, and procedures that publicly traded companies must follow when composing their financial statements globalization - Correct Answers: development of business through international influence, or extending social and cultural aspects around the world goal - Correct Answers: what a company expects to accomplish over time government agency - Correct Answers: found at all levels of government: federal, state, county, city, and so on; includes military, law enforcement, airports, and school systems Institute of Management Accountants (IMA) - Correct Answers: professional organization for management accountants that provides research, education, a means of knowledge sharing, and practice development to its members intangible good - Correct Answers: good with financial value but no physical presence; examples include copyrights, patents, goodwill, and trademarks internal auditor - Correct Answers: employee of an organization whose job is to provide an independent and objective evaluation of the company's accounting and operational activities internal user - Correct Answers: someone inside the company or organization who is responsible for managing the company's business interests and executing decisions (e.g., all levels of management, owner, and other employees) just-in-time (JIT) manufacturing - Correct Answers: inventory system that companies use to increase efficiency and decrease waste by receiving goods only as they are needed within the production process, thereby reducing warehousing costs kaizen - Correct Answers: another process that is often linked to Six Sigma and is designed for continuous improvement by eliminating waste and increasing efficiencies; a Japanese word meaning change for the better lean business model - Correct Answers: one in which a company strives to eliminate waste in its products, services, and processes, while still fulfilling the company's mission Lean Six Sigma (LSS) - Correct Answers: quality control program that depends on a combined effort of many team members to enhance performance by analytically removing waste and diminishing variations between products managerial accounting - Correct Answers: process that allows decision makers to set and evaluate business goals by determining what information they need to make a particular decision and how to analyze and communicate this information mission statement - Correct Answers: short statement of a company's purpose and focus monetary accounting information - Correct Answers: relating to money or currency nonmonetary accounting information - Correct Answers: not relating to money or currency, such as the quantity of materials, number of employees, number of hours worked, and so forth nonprofit (not-for-profit) organization - Correct Answers: tax-exempt organization that serves its community in a variety of areas objective - Correct Answers: target that needs to be met in order to meet company goals outsourcing - Correct Answers: act of using another company to provide goods or services that your company requires planning - Correct Answers: process of setting goals and objectives radio-frequency identification (RFID) - Correct Answers: technology that uses electromagnetic fields to routinely identify and trace inventory tags that have been attached to objects Sarbanes-Oxley Act (SOX) - Correct Answers: federal law that regulates business practices; intended to protect investors by enhancing the accuracy and reliability of corporate financial statements and disclosures through governance guidelines including sanctions for criminal conduct strategic planning - Correct Answers: setting priorities and determining how to allocate corporate resources to help an organization accomplish short-term and long-term goals sustainability - Correct Answers: meeting the needs of the present generation without compromising the ability of future generations to meet their own needs by being aware of current economic, social, and environmental impacts tangible good - Correct Answers: physical good that customers can handle and see theory of constraints (TOC) - Correct Answers: process of recognizing and removing bottlenecks within the value chain that may be limiting an organization's profitability total quality management (TQM) - Correct Answers: process in which management and employees look to reveal waste and errors, streamline the supply chain, improve customer relations, and confirm that employees are informed and properly trained treasurer - Correct Answers: financial officer of a corporation reporting to the CFO who is in control of the finance side of the business (cash position, corporation funds) whistleblower - Correct Answers: someone who provides evidence of fraud