EXERCISE 1-1 The Roles of Managers and Management Accountants [[LO1], [LO2]
A number of terms that relate to organizations, the work of management, and the role of managerial accounting are listed below:
budgets
controller
decentralization
directing and motivating
feedback
financial accounting
line
managerial accounting
nonmonetary data
planning
performance report
staff
precision
Chief Financial Officer
Choose the term or terms above that most appropriately complete the following statements.
______________ is concerned with providing information for the use of those who are inside the organization, whereas is ______________ concerned with providing information for the use of those who are outside the organization.
______________ consists of identifying alternatives, selecting from among the alternatives the one that is best for the organization, and specifying what actions will be taken to implement the chosen alternative.
When ______________, managers oversee day-to-day activities and keep the organization functioning smoothly.
The accounting and other reports coming to management that are used in controlling the organization are called ______________.
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 ______________.
A position on the organization chart that is directly related to achieving the basic objectives of an organization is called a ______________ position.
A ______________ position provides service or assistance to other parts of the organization and does not directly achieve the basic objectives of the organization.
The manager in charge of the accounting department is generally known as the ______________.
The plans of management are expressed formally in ______________.
A detailed report to management comparing budgeted data to actual data for a specific time period is called a ______________.
The ______________ 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 users.
Managerial accounting places less emphasis on ______________ and more emphasis on ______________ than financial accounting.
Choose the term or terms from the above list that most appropriately completes each of the following statements:
A(n) ______________ is a game plan that enables a company to attract customers by distinguishing itself from competitors.
______________ is a method that relies on customer feedback and objective data gathering and analysis techniques to drive process improvement.
A(n) ______________ 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 ______________.
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 ______________.
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 ______________.
The ______________ fuels the globalization phenomenon by providing companies with greater access to geographically dispersed customers, employees, and suppliers.
A(n) ______________ is anything that prevents an organization or individual from getting more of what it wants.
Increasing the rate of output of a(n) ______________ as the result of an improvement effort is unlikely to have much effect on profits.
A(n) ______________ 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.
A(n) ______________integrates data from across an organization into a single centralized database that enables all employees to access a common set of data.
A management approach that coordinates business processes across companies to better serve end consumers is known as ______________.
The ______________ is a five-step management approach that organizes resources around the flow of business processes and that ______________ units through those processes in response to customer orders.
A company can only succeed if it creates a reason for customers to choose it over a competitor; in short, a ______________.
A(n) ______________is a detailed plan for the future, usually expressed in formal quantitative terms.
A(n) ______________ consumes resources but does not add value for which customers are willing to pay.
The management approach that emphasizes the importance of managing constraints is known as the ______________.
Andy Morio was hired by a popular fast-food restaurant as an order-taker and cashier. Shortly after taking the job, he was shocked to overhear an employee bragging to a friend about shortchanging customers. He confronted the employee who then snapped back: “Mind your own business. Besides, everyone does it and the customers never miss the money.” Andy didn’t know how to respond to this aggressive stance.
Required:
What would be the practical consequences on the fast-food industry and on consumers if cashiers generally shortchanged customers at every opportunity?
