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Definition of decentralization
a management style that exists when top
A line representing equilibrium in the goods and services market, on a diagram with aggregate demand on the vertical axis and aggregate supply on the horizontal axis.
The use of various forms of gimmickry to distort a company's true financial performance in order to achieve a desired result.
A characterization used by the Securities and Exchange
a discipline that focuses on the activities incurred during the production/performance process as the way to improve the value received
An option contract that can be exercised at any time between the date of purchase and
For investment companies, the management fee and "other expenses,"
Dollar deposits held in Singapore or other Asian centers.
Also called surplus management, the task of managing funds of a financial
A steep and rapid increase in price followed by a steep and rapid drop. This is an indicator seen
A management style that de-emphasizes the significance of economic
This equals the cash inflow from sales during the period minus the cash
With some exceptions, the cash effects of transactions
Very short maturity bills that the Treasury occasionally sells because its cash
a professional designation in the area of management accounting that
The application of financial principals within a corporation to create and
cost management system (CMS)
a set of formal methods
the process of choosing among the alternative
degree of operating leverage
a factor that indicates how a percentage change in sales, from the existing or current
degree of operating leverage (DOL)
Percentage change in profits given a 1 percent change in sales.
Demand Management Policy
Fiscal or monetary policy designed to influence aggregate demand for goods and services.
The active manipulation of earnings toward a predetermined target.
equivalent units of production (EUP)
an approximation of the number of whole units of output that could have been
An option contract that can only be exercised on the expiration date.
decisions concerning the liabilities and stockholders' equity side of the firm's balance
Institute of Management Accountants (IMA)
an organization composed of individuals interested in the field of management accounting; it coordinates the Certified management
decisions concerning the asset side of a firm's balance sheet, such as the decision to
Junior debt (subordinate debt)
Debt whose holders have a claim on the firm's assets only after senior
Refers to the seller's actually turning over to the buyer the asset agreed upon in a forward contract.
management refers to the individuals in an entity that have the authority and the responsibility to manage the entity. The positions of these individuals, and their titles, vary from one entity to another and, to some extent, from one country to another depending on the local laws and customs. Thus, when the context requires it, the term includes the board of directors or committees of the board which are designated to oversee certain matters (e.g., audit committee).
The production of financial and non-financial information used in planning for the future; making decisions about products, services, prices and what costs to incur; and ensuring that plans are implemented and achieved.
a discipline that includes almost
Management Accounting Guidelines (MAGs)
pronouncements of the Society of management Accountants of
Management buyout (MBO)
Leveraged buyout whereby the acquiring group is led by the firm's management.
management buyout (MBO)
Acquisition of the firm by its own management in a leveraged buyout.
Management/closely held shares
Percentage of shares held by persons closely related to a company, as
This is difficult to define in a few words—indeed, an
management control system (MCS)
an information system that helps managers gather information about actual organizational occurrences, make comparisons against plans,
management expense ratio (MER)
The total expenses expressed as an annualized percentage of daily average net assets. MER does not include brokerage fees and commissions, which are also payable by the Fund.
An investment advisory fee charged by the financial advisor to a fund based on the fund's
The fee paid to the fund’s manager for supervising the administration of the fund.
management information system (MIS)
a structure of interrelated elements that collects, organizes, and communicates
the preference of a manager in how he/she interacts with other stakeholders in the organization;
decisions concerning the operation of the firm, such as the choice of firm size, firm
Related: Investment management.
Mutually exclusive investment decisions
Investment decisions in which the acceptance of a project
Net operating losses
Losses that a firm can take advantage of to reduce taxes.
Net operating margin
The ratio of net operating income to net sales.
Nonsignificant part number
An identifying number assigned to a part that conveys
a philosophy about increasing a firm’s performance by involving all workers and by ensuring
Includes all the sales and expense activities of a business.
a budget expressed in both units and dollars
Operating cash flow
Earnings before depreciation minus taxes. It measures the cash generated from
operating cash flow
See cash flow from operating activities.
Operating Cash Flow
Income available after the payment of taxes, plus the value of the
The average time intervening between the acquisition of materials or services and the final
A term frequently used to describe earnings after the removal of the
Any expense associated with the general, sales, and administrative
The total amount that was spent to run a company this year.
The amount of money the company must spend on overhead, distribution, taxes, underwriting the risk and servicing the policy. It is a factor in calculating premium rates.
degree to which exchange rate changes, in combination with price changes, will alter a
The net income of a business, less the impact of any financial activity,
A measure of results produced by the core operations of a firm. It is common
Short-term, cancelable lease. A type of lease in which the period of contract is less than the
The rental of an asset from a lessor, but not under terms that would
One where the risks and benefits, as well as ownership, stays with the lessor.
Fixed operating costs, so-called because they accentuate variations in profits.
A relatively small percent increase or decrease in
the proportionate relationship between
degree to which costs are fixed.
Operating Line of Credit
A bank's commitment to make loans to a particular borrower up to a specified maximum for a specified period, usually one year.
A loan advanced under an operating line of credit.
The profit made by the business for an accounting period, equal to gross profit less selling, finance, administration etc. expenses, but before deducting interest or taxation.
See earnings before interest and income tax (EBIT).
Operating profit margin
The ratio of operating margin to net sales.
The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is
operating risk (business risk)
Risk in firm’s operating income.
Operational Earnings Management
management actions taken in the effort to create stable
the set of basic assumptions about
an entity’s legal nature (for example,
a cost incurred to support the ongoing
the manner in which authority and
Passive investment management
Buying a well-diversified portfolio to represent a broad-based market
performance management system
a system reflecting the entire package of decisions regarding performance measurement and evaluation
Related: Investment management
Real Actions (Earnings) Management
Involves operational steps and not simply acceleration
The process of identifying and evaluating risks and selecting and managing techniques to
Short-run operating activities
Events and decisions concerning the short-term finance of a firm, such as
The extent of influence of an investor over the operating and financial
Significant part number
An identifying number assigned to an item that conveys
Society of Management Accountants of Canada
the professional body representing an influential and diverse
Statement on Management Accounting (SMA)
a pronouncement developed and issued by the management
A stop order that designates a price limit. In contrast to the stop order, which becomes a
An order to sell a stock when the price falls to a specified level.
Stop order (or stop)
An order to buy or sell at the market when a definite price is reached, either above (on a
A service which enables you to request a 'stop' on any cheque or other pre-authorized payment, as long as the funds have not yet been disbursed. For example, you might request a stop payment on a post-dated cheque if you no longer need the product or service for which that cheque was initially written.
A curve showing the refunding rates for different points in time at which the expected value
Stopping curve refunding rate
A refunding rate that falls on the stopping curve.
Strategic management accounting
The provision and analysis of management accounting data about a business and its competitors, which is of use in the development and monitoring of strategy (Simmonds).
strategic resource management
organizational planning for the deployment of resources to create value for customers and shareholders; key varibles in the process include the management of information and the management of change in response to threats and opportunities
A bond having a claim on assets only after the senior debt has been paid off in the event of liquidation.
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