Managerial Accounting, 11/e
Ray Garrison, Brigham Young University
Eric Noreen, University of Washington
Peter Brewer, Miami University

Benchmarking  A study of organizations that are among the best in the world at performing a particular task.
Budget  A detailed plan for the future, usually expressed in formal quantitative terms.
Business process  A series of steps that are followed in order to carry out some task in a business.
Chief Financial Officer  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. An effective CFO is a key member of the top management team whose advice is sought in all major decisions.
Constraint  Anything that prevents an organization or individual from getting more of what it wants.
Control  The process of instituting procedures and then obtaining feedback to ensure that all parts of the organization are functioning effectively and moving toward overall company goals.
Controller  The manager in charge of the accounting department in an organization.
Controlling  Ensuring that the plan is actually carried out and is appropriately modified as circumstances change.
Cycle time  See Throughput time.
Decentralization  The delegation of decision-making authority throughout an organization by providing managers at various operating levels with the authority to make key decisions relating to their area of responsibility.
Directing and motivating  Mobilizing people to carry out plans and run routine operations.
Feedback  Accounting and other reports that help managers monitor performance and focus on problems and/or opportunities that might otherwise go unnoticed.
Financial accounting  The phase of accounting concerned with providing information to stockholders, creditors, and others outside the organization.
Finished goods  Units of product that have been completed but have not yet been sold to customers.
Just-In-Time (JIT)  A production and inventory control system in which materials are purchased and units are produced only as needed to meet actual customer demand.
Line  A position in an organization that is directly related to the achievement of the organization's basic objectives.
Managerial accounting  The phase of accounting concerned with providing information to managers for use in planning and controlling operations and in decision making.
Non-value-added activity  An activity that consumes resources or takes time but that does not add value for which customers are willing to pay.
Organization chart  A visual diagram of a company's organizational structure that depicts formal lines of reporting, communication, and responsibility between managers.
Performance report  A detailed report comparing budgeted data to actual data.
Planning  Selecting a course of action and specifying how the action will be implemented.
Planning and control cycle  The flow of management activities through planning, directing and motivating, and controlling, and then back to planning again.
Process Reengineering  An approach to improvement that involves completely redesigning business processes in order to eliminate unnecessary steps, reduce errors, and reduce costs.
Raw materials  Materials that are used to make a product.
Segment  Any part of an organization that can be evaluated independently of other parts and about which the manager seeks financial data. Examples include a product line, a sales territory, a division, or a department.
Setup  Activities that must be performed whenever production is switched over from making one type of item to another.
Staff  A position in an organization that is only indirectly related to the achievement of the organization's basic objectives. Such positions provide service or assistance to line positions or to other staff positions.
Theory of Constraints (TOC)  A management approach that emphasizes the importance of managing constraints.
Throughput time  The time required to manufacture a unit of product. Throughput time is also known as cycle time.
Total Quality Management (TQM)  An approach to continuous improvement that focuses on customers and using teams of front-line workers to systematically identify and solve problems.
Work in process  Units of product that are only partially complete and will require further work before they are ready for sale to a customer.