- automation
- 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
- tool used to evaluate performance using qualitative and nonqualitative measures
- board of directors
- 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
- 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
- someone who arranges and manages the master budget and compares master budget projections to actual results
- cash-management accountant
- 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)
- 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)
- 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)
- 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)
- 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)
- 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)
- 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)
- 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)
- corporation officer who reports to the CEO and oversees all of the accounting and finance concerns of a company
- collaboration
- working in cross-functional teams and earning the trust and respect of colleagues in order to complete a task
- commercial awareness
- 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
- ongoing effort to improve processes, products, services, and practices
- controller
- 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
- monitoring of the planning objectives that were put into place
- corporate social responsibility (CSR)
- actions that firms take to assume responsibility for their impact on the environment and social well-being
- cost accountant
- 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
- conveying information in both written and oral forms in a way that the intended audience can understand
- Enrolled Agent (EA)
- 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)
- system that helps a company streamline its operations and helps management respond quickly to change
- evaluating
- comparing actual results against the planned results
- external user
- 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)
- 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
- 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)
- 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)
- common set of rules, standards, and procedures that publicly traded companies must follow when composing their financial statements
- globalization
- development of business through international influence, or extending social and cultural aspects around the world
- goal
- what a company expects to accomplish over time
- government agency
- 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)
- professional organization for management accountants that provides research, education, a means of knowledge sharing, and practice development to its members
- intangible good
- good with financial value but no physical presence; examples include copyrights, patents, goodwill, and trademarks
- internal auditor
- employee of an organization whose job is to provide an independent and objective evaluation of the company's accounting and operational activities
- internal user
- 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
- 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
- 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
- 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)
- 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
- 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
- short statement of a company’s purpose and focus
- monetary accounting information
- relating to money or currency
- nonmonetary accounting information
- 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
- tax-exempt organization that serves its community in a variety of areas
- objective
- target that needs to be met in order to meet company goals
- outsourcing
- act of using another company to provide goods or services that your company requires
- planning
- process of setting goals and objectives
- radio-frequency identification (RFID)
- technology that uses electromagnetic fields to routinely identify and trace inventory tags that have been attached to objects
- Sarbanes-Oxley Act (SOX)
- 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
- setting priorities and determining how to allocate corporate resources to help an organization accomplish short-term and long-term goals
- sustainability
- 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
- physical good that customers can handle and see
- theory of constraints (TOC)
- process of recognizing and removing bottlenecks within the value chain that may be limiting an organization’s profitability
- total quality management (TQM)
- 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
- 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
- someone who provides evidence of fraud