Management accounting ch1

Association of International Certified Professional Accountants (AICPA)

The world’s largest association representing the accounting profession; together with the Chartered Institute of Management Accountants (CIMA), offers the Chartered Global Management Accountant (CGMA) designation.

Audit Committee

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.

Board of directors

The body elected by shareholders to oversee the company.

CMA

A professional certification issued by the IMA to designate expertise in the areas of managerial accounting, economics, and business finance.

CEO

oversees company

CFO

oversees company’s finances

COO

oversees companys operations

Controller

The position responsible for general financial accounting, managerial accounting, and tax reporting.

Controlling

a primary responsibility of manager’s/ management. evaluates the results against the plan and makes adjustments

cost benefit analysis

weighing costs against benefits to help make decisions

Cross functional teams

Corporate teams whose members represent various functions of the organization, such as R&D, design, production, marketing, distribution, and customer service.

Directing

One of management’s primary responsibilities; running the company on a day-to-day basis.

Enterprise resource planning (ERP)

Software systems that can integrate all of a company’s worldwide functions, departments, and data into a single system.

Institute of management accountants (IMA)

The professional organization that promotes the advancement of the management accounting profession.

Internal audit function

asses effectiveness of company’s internal controls and risk management

Planning

One of management’s primary responsibilities: setting goals and objectives for the company and deciding how to achieve them.

Sarbanes-Oxley Act of 2002 (SOX)

A congressional act that enhances internal control and financial reporting requirements and establishes new regulatory requirements for publicly traded companies and their independent auditors.

Sustainability

The ability to meet the needs of the present without compromising the ability of future generations to meet their own needs.

Treasurer

The position responsible for raising the firm’s capital and investing funds.

Triple bottom line

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.