Braun & Tietz Managerial Accounting Chapter 1 Exam verified solutions and explanations

Braun & Tietz Managerial Accounting: Chapter 1 Exam verified solutions and explanations ISO 9001:2008 - Correct Answers: A quality-related certification issued by the International Organization for Standardization (ISO). Firms may become ISO 9001:2008 certified by complying with the quality management standards set forth by the ISO and undergoing extensive audits for their quality management purposes. Chief Financial Officer (CFO) - Correct Answers: The position responsible for all of the company's financial concerns. Sarbanes-Oxley Act of 2002 (SOX) - Correct Answers: A congressional act that enhances internal control and financial reporting requirements and establishes new regulatory requirements for publicly traded companies and their independent auditors. Internal Audit Function - Correct Answers: The corporate function charged with assessing the effectiveness of the company's internal controls and risk management policies. Just-In-Time (JIT) - Correct Answers: An inventory philosophy first pioneered by Toyota in which a product is manufactured just in time to fill customer orders. Companies adopting JIT are able to substantially reduce the quantity of raw materials and finished products kept on hand. International Financial Reporting Standards (IFRS) - Correct Answers: The SEC is considering whether to require all publicly traded companies to adopt IFRS. In many instances, IFRS vary from GAAP. Planning - Correct Answers: One of management's primary responsibilities; setting goals and objectives for the company and deciding how to achieve them. American Institute of Certified Public Accountants (AICPA) - Correct Answers: The world's largest association representing the accounting profession; together with the Chartered Institute of Management Accountants (CIMA) offering the Chartered Global Management Accountant (CGMA) designation Cost-Benefit Analysis - Correct Answers: Weighing costs against benefits to help make decisions. Audit Committee - Correct Answers: A subcommittee of the board of directors that is responsible for overseeing both the internal audit function and the annual financial statement audit by independent CPAs. Chief Executive Officer (CEO) - Correct Answers: The position hired by the board of directors to oversee the company on a daily basis. Decision Making - Correct Answers: Identifying possible courses of action and choosing among them. Institute of Management Accountants (IMA) - Correct Answers: The professional organization that promotes the advancement of the management accounting profession. Controller - Correct Answers: The position responsible for general financial accounting, managerial accounting, and tax reporting. Chief Operating Officer (COO) - Correct Answers: The position responsible for overseeing the company's operations. Treasurer - Correct Answers: The position responsible for raising the firm's capital and investing funds. Chartered Global Management Accountant (CGMA) - Correct Answers: A designation available to qualifying AICPA members that is meant to recognize the unique business and accounting skill set possessed by those CPAs who work, or have worked, in business, industry, or government. Controlling - Correct Answers: One of management's primary responsibilities; evaluating the results of business operations against the plan and making adjustments to keep the company pressing toward its goals. Lean Thinking - Correct Answers: A philosophy and business strategy of operating without waste. Triple Bottom Line - Correct Answers: Evaluating a company's performance not only by its ability to generate economic profits, but also by its impact on people and on the planet. Sustainability - Correct Answers: The ability to meet the needs of the present without compromising the ability of future generations to meet their own needs. Cross-Functional Teams - Correct Answers: Corporate teams whose members represent various functions of the organization, such as R&D, design, production, marketing, distribution, and customer service. Directing - Correct Answers: One of management's primary responsibilities; running the company on a day-to-day basis. Enterprise Resource Planning (ERP) - Correct Answers: Software systems that can integrate all of a company's worldwide functions, departments, and data into a single system. Integrated Reporting - Correct Answers: A process resulting in a report that describes how a company is creating value over time using financial, manufactured, intellectual, human, social, and natural capital. Board of Directors - Correct Answers: The body elected by shareholders to oversee the company. Total Quality Management (TQM) - Correct Answers: A management philosophy of providing customers with superior products and services by continually setting higher goals and improving the performance of every business function. Budget - Correct Answers: Quantitative expression of a plan that helps managers coordinate and implement the plan. Extensible Business Reporting Language (XBRL) - Correct Answers: A data tag system that enables companies to release financial and business information in a format that can be quickly, efficiently, and cost-effectively accessed, sorted, and analyzed over the internet. Throughput Time - Correct Answers: The time between buying raw materials and selling finished products.