The accounting and other reports coming to management that are used in controlling the organization are called feedback. 5. The delegation of decision-making authority throughout an organization by allowing managers at various operating levels to make key decisions relating to their area of responsibility is called decentralization. 6. A position on the organization chart that is directly related to achieving the basic objectives of an organization is called a line position. 7. A staff position provides service or assistance to other parts of an organization and does not directly achieve the basic objective of the organization. . The manager in charge of the accounting department is generally known as the controller. 9. The plans of management are expressed formally in budgets. 10.
A detailed report to management comparing budgeted data to actual data for a specific time period is called a performance report. 11. The chief financial officer is the member of the top management team who is responsible for providing timely and relevant data to support planning and control activities and for preparing financial statements for external use. 2. Managerial accounting places less emphasis on precision and more emphasis on non-monetary data than financial accounting. Exercise 1-2 1. Inventory consisting of units of product that are only partially complete at the end of a period is known as working process. 2. Six Sigma is a method that relies on customer feedback and objective data gathering and analysis techniques to drive process improvement. 3. A business process is a series of steps that are followed to carry out some task in a business. . The system by which a company is directed and controlled is called corporate governance. 5. The process used by a company to help identify the risks that it faces and to develop responses to those risks so that the company is reasonably assured of meeting its goals is known as enterprise risk management. 6. A production and inventory control system in which materials are purchased and units are produced only as needed to meet actual customer demand is known as just-in-time. 7.
Society has become based solely on the ability to move large amounts of information across vast distances quickly. The natural evolution of computers and this need for ultra-fast communications has caused a global network of interconnected computers to develop. This global network allows a person to send E-mail across the world in mere fractions of a second, and enables even the common person to ...
Poorly designed products that cause health problems for customers and financial statements that overstate the amount of revenue generated by the organization are examples of business risks. 8. Increasing the rate of output of a non-value-added activity as the result of an improvement effort is unlikely to have much effect on profits. 9. A value chain consists of business functions that add value to a company’s products and services, such as research and development, product design, manufacturing, marketing, distribution, and customer service. 10.
An enterprise system integrates data from across an organization into a single centralized database that enables all employees to access a common set of data. 11. Professional accounting groups such as CMA Canada have a code of professional ethics that contains details of how its members should conduct themselves in their dealings with the public. 12. The lean thinking model is a five-step management approach that organizes resources around the flow of business processes and that pulls units through those processes in response to customer orders. 3. A company can succeed only if it creates a reason for customers to choose it over a competitor; in short, a customer value proposition. 14. The Sarbanes-Oxley Act represents an important reform of corporate governance practices and among other things requires the CEO and CFO to certify in writing that financial statements fairly represent the result of operations. 15. The concept of organizations considering the needs of all stakeholders when making decisions is known as corporate social responsibilities. Problem 1-7 1.
APPLE 2002 CASE ANALYSIS STUDENT NUMBER 899 Executive Summary Apple began with the mission to "change the world through technology." More specifically, the company sought out to make the personal computer an accessible and affordable device to the mass market. The proliferation of new software and hardware technology drastically changed the landscape of the industry and Apple adopted a ...
The stakeholders that were probably negatively affected by the problems experienced by Toyota are: * Customers * Employees * Communities * Shareholders 2. Effective corporate governance refers to the processes and structures by which the business and affairs of an organization are directed and managed. Therefore, the role corporate governance plays is to build credibility, ensure transparency, and maintain an effective channel of information disclosure; as well as ensuring that if something goes wrong the right people are held accountable.