Key Terms
Managerial accounting
The process that allows decision makers to set and evaluate business goals by determining what information they need to
Also called
Management accounting or cost accounting.
Primary users
Internal users — managers at all levels, owners, employees. Financial accounting users: external users — investors, cred
Monetary accounting information
Relates to money or currency.
Nonmonetary accounting information
Does not relate to money — quantity of materials, number of employees, hours worked, units produced, customer counts.
Organizational chart
Displays configuration and delegation of authority in decision-making.
IMA definition of management accounting
"a profession that involves partnering in management decision making, devising planning and performance management syste
IMA provides
Research, education, knowledge sharing, practice development, and issues the CMA certification.
Whistleblower
Person who provides evidence of fraud.
Bribery
When an organization or its representative gives money or financial benefits to another individual, business, or officia
Slush fund
A cash account created for illegal activities or payments not recorded on the books.
Manufacturing companies
Produce tangible goods (physical products customers can handle and see). Carry multiple inventory types: raw materials,
Service companies
Produce intangible goods (no physical substance). Do not carry large inventories.
ERP (Enterprise Resource Planning)
Integrates multiple business functions (HR, payroll, procurement, etc.) into one coordinated system. Expensive but elimi
Key ERP providers referenced
Hyperion, Cognos, Sage, SAP, PeopleSoft, Oracle.