Chapter 1: Managerial Accounting, An
Overview
Budget - correct answer-A detailed plan for the future that is usually expressed in formal
quantitative terms
Business process - correct answer-A series of steps that are followed in order to carry out
some task in a business
Controlling - correct answer-The process of gathering feedback to ensure that a plan is being
properly executed or modified as circumstances change
Corporate Social Responsibility - correct answer-A concept whereby organizations consider
the needs of all stakeholders when making decisions
Decision Making - correct answer-Selecting a course of action from competing alternatives
Enterprise Risk Management - correct answer-A process used by a company to identify its
risks and develop responses to them that enable it to be reasonably assured of meeting its
goals
Financial Accounting - correct answer-The phase of accounting that is concerned with
reporting historical financial information to external parties, such as stockholders, creditors,
and regulators
Lean Production - correct answer-A management approach that organizes resources such
as people and machines around the flow of business processes and that only produces units
in response to customer orders
Managerial Accounting - correct answer-The phase of accounting that is concerned with
providing information to managers for use within the organization
Performance Report - correct answer-A report that compares budgeted data to actual data to
highlight instances of excellent and unsatisfactory performance
Planning - correct answer-The process of establishing goals and specifying how to achieve
them
Segment - correct answer-A part or activity of an organization about which managers would
like cost, revenue, or profit data
Strategy - correct answer-A company's "game plan" for attracting customers by
distinguishing itself from competitors
Overview
Budget - correct answer-A detailed plan for the future that is usually expressed in formal
quantitative terms
Business process - correct answer-A series of steps that are followed in order to carry out
some task in a business
Controlling - correct answer-The process of gathering feedback to ensure that a plan is being
properly executed or modified as circumstances change
Corporate Social Responsibility - correct answer-A concept whereby organizations consider
the needs of all stakeholders when making decisions
Decision Making - correct answer-Selecting a course of action from competing alternatives
Enterprise Risk Management - correct answer-A process used by a company to identify its
risks and develop responses to them that enable it to be reasonably assured of meeting its
goals
Financial Accounting - correct answer-The phase of accounting that is concerned with
reporting historical financial information to external parties, such as stockholders, creditors,
and regulators
Lean Production - correct answer-A management approach that organizes resources such
as people and machines around the flow of business processes and that only produces units
in response to customer orders
Managerial Accounting - correct answer-The phase of accounting that is concerned with
providing information to managers for use within the organization
Performance Report - correct answer-A report that compares budgeted data to actual data to
highlight instances of excellent and unsatisfactory performance
Planning - correct answer-The process of establishing goals and specifying how to achieve
them
Segment - correct answer-A part or activity of an organization about which managers would
like cost, revenue, or profit data
Strategy - correct answer-A company's "game plan" for attracting customers by
distinguishing itself from competitors
