Term
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Definition
| Procedures used to verify accounting reports and statements. |
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Term
| activity-based costing (ABC) |
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Definition
| A method of cost accounting designed to identify streams of activity and then to allocate costs across particular business processes according to the amount of time employees devote to particular activities. |
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Definition
| The values of the various items the corporation owns. |
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Definition
| Control system combining four sets of performance measures: financial, customer, business process, and learning and growth. |
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Term
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Definition
| A report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders’ equity. |
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Term
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Definition
| The process of investigating what is being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences; also called budgetary controlling. |
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Definition
| The use of rules, regulations, and authority to guide performance. |
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Definition
| Control based on the norms, values, shared goals, and trust among group members. |
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Term
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Definition
| The control process used while plans are being carried out, including directing, monitoring, and fine-tuning activities as they are performed. |
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Term
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Definition
| Any process that directs the activities of individuals toward the achievement of organizational goals. |
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Term
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Definition
| A liquidity ratio that indicates the extent to which short-term assets can decline and still be adequate to pay short-term liabilities. |
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Term
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Definition
| A leverage ratio that indicates the company’s ability to meet its long-term financial obligations. |
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Term
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Definition
| An evaluation conducted by one organization, such as a CPA firm, on another. |
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Term
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Definition
| ontrol that focuses on the use of information about previous results to correct deviations from the acceptable standard. |
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Term
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Definition
| The control process used before operations begin, including policies, procedures, and rules designed to ensure that planned activities are carried out properly. |
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Term
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Definition
| A periodic assessment of a company’s own planning, organizing, leading, and controlling processes. |
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Term
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Definition
| The amounts a corporation owes to various creditors. |
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Term
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Definition
| An evaluation of the effectiveness and efficiency of various systems within an organization. |
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Term
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Definition
| Focusing on short-term earnings and profits at the expense of longer-term strategic obligations. |
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Term
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Definition
| Control based on the use of pricing mechanisms and economic information to regulate activities within organizations. |
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Term
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Definition
| A managerial principle stating that control is enhanced by concentrating on the exceptions to or significant deviations from the expected result or standard. |
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Term
| profit and loss statement |
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Definition
| An itemized financial statement of the income and expenses of a company’s operations. |
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Term
| return on investment (ROI) |
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Definition
| A ratio of profit to capital used, or a rate of return from capital. |
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Term
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Definition
| Expected performance for a given goal: a target that establishes a desired performance level, motivates performance, and serves as a benchmark against which actual performance is assessed. |
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Term
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Definition
| The amount accruing to the corporation’s owners. |
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Term
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Definition
| Price charged by one unit for a good or service provided to another unit within the organization. |
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