|management control system (MCS)|
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Definition of management control system (MCS)
management control system (MCS)
an information system that helps managers gather information about actual organizational occurrences, make comparisons against plans,
the additional value inherent in the control interest as contrasted to a minority interest, which reflects its power of control
an amount or percentage deducted from a pro rata share of the value of 100% of an equity interest in a business, to reflect the absence of some or all of the powers of control.
Schedule of depreciation rates allowed for tax purposes.
Also called surplus management, the task of managing funds of a financial
A management style that de-emphasizes the significance of economic
Very short maturity bills that the Treasury occasionally sells because its cash
A computerized clearing system for sterling funds
An international wire transfer system for high-value
50% of the outstanding votes plus one vote.
A service that provides for a single presentation of checks each day (typically in
A foreign corporation whose voting stock is more than 50% owned
The corporate manager responsible for the firm's accounting activities.
The application of financial principals within a corporation to create and
Highlights the fact that return on assets (ROA) can be expressed in terms
An exchange arrangement formed in 1979 that involves the currencies
Governmental restrictions on the purchase of foreign currencies by domestic citizens or
Federal Reserve System
The central bank of the U.S., established in 1913, and governed by the Federal
The management of a firm's costs and expenses in order to control them in relation to
Foreign exchange controls
Various forms of controls imposed by a government on the purchase/sale of
GMCs (guaranteed mortgage certificates)
First issued by Freddie Mac in 1975, Gmcs, like PCs, represent
Imputation tax system
Arrangement by which investors who receive a dividend also receive a tax credit for
Just-in-time inventory systems
systems that schedule materials/inventory to arrive exactly as they are
Management/closely held shares
Percentage of shares held by persons closely related to a company, as
Management buyout (MBO)
Leveraged buyout whereby the acquiring group is led by the firm's management.
An investment advisory fee charged by the financial advisor to a fund based on the fund's
Related: Investment management.
A technical trading strategy that combines mechanical rules, such as the CRISMA
Nonmarket or firm-specific risk factors that can be eliminated by diversification. Also
Passive investment management
Buying a well-diversified portfolio to represent a broad-based market
Related: Investment management
Progressive tax system
A tax system wherein the average tax rate increases for some increases in income but
Risk controlled arbitrage
A self-funding, self-hedged series of transactions that generally utilize mortgage
The process of identifying and evaluating risks and selecting and managing techniques to
Split-rate tax system
A tax system that taxes retained earnings at a higher rate than earnings that are
Related: asset management
Common to all businesses.
Also called undiversifiable risk or market risk, the minimum level of risk that can be
Systematic risk principle
Only the systematic portion of risk matters in large, well-diversified portfolios.
Top-down equity management style
A management style that begins with an assessment of the overall
Two-tier tax system
A method of taxation in which the income going to shareholders is taxed twice.
Also called the diversifiable risk or residual risk. The risk that is unique to a company
Working capital management
The management of current assets and current liabilities to maximize shortterm liquidity.
MACRS (Modified Accelerated Cost Recovery System)
A depreciation method created by the IRS under the Tax Reform Act of 1986. Companies must use it to depreciate all plant and equipment assets installed after December 31, 1986 (for tax purposes).
A set of accounts that summarize the transactions of a business that have been recorded on source documents.
The process of ensuring that actual financial results are in line with targets – see variance
The profit made by a division after deducting only those expenses that can be controlled by the
The process of either reducing costs while maintaining the same level of productivity or maintaining costs while increasing productivity.
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.
Planning, programming and budgeting system (PPBS)
A method of budgeting in which budgets are allocated to projects or programmes rather than to responsibility centres.
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).
A variety of approaches that emphasize increasing shareholder value as the primary goal of every business.
An account maintained in the general ledger that holds the balance without the detail. The detail is maintained in a subsidiary ledger.
Periodic inventory system
An inventory system in which the balance in the Inventory account is adjusted for the units sold only at the end of the period.
Perpetual inventory system
An inventory system in which the balance in the Inventory account is adjusted for the units sold each time a sale is made.
internal accounting controls
Refers to forms used and procedures
This is difficult to define in a few words—indeed, an
The amount of total risk that cannot be eliminated by portfolio
The amount of total risk that can be eliminated by diversification by
activity-based management (ABM)
a discipline that focuses on the activities incurred during the production/performance process as the way to improve the value received
actual cost system
a valuation method that uses actual direct
business intelligence (BI) system
a formal process for gathering and analyzing information and producing intelligence to meet decision making needs; requires information about
Certified Management Accountant (CMA)
a professional designation in the area of management accounting that
a system using transfer prices; see transfer
a graphical presentation of the results of a
a cost over which a manager has the ability to authorize incurrence or directly influence magnitude
the budget variance of the two variance approach to analyzing overhead variances
the chief accountant (in a corporation) who is responsible
the process of exerting managerial influence on
cost control system
a logical structure of formal and/or informal
cost management system (CMS)
a set of formal methods
enterprise resource planning (ERP) system
a packaged software program that allows a company to
flexible manufacturing system (FMS)
a production system in which a single factory manufactures numerous variations
hybrid costing system
a costing system combining characteristics
Institute of Management Accountants (IMA)
an organization composed of individuals interested in the field of management accounting; it coordinates the Certified management
any measure used by management to protect
job order costing system
a system of product costing used
just-in-time manufacturing system
a production system that attempts to acquire components and produce inventory only as needed, to minimize product defects, and to
a discipline that includes almost
Management Accounting Guidelines (MAGs)
pronouncements of the Society of management Accountants of
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;
the fixed overhead volume variance;
normal cost system
a valuation method that uses actual
a philosophy about increasing a firm’s performance by involving all workers and by ensuring
performance management system
a system reflecting the entire package of decisions regarding performance measurement and evaluation
process costing system
a method of accumulating and assigning costs to units of production in companies producing large quantities of homogeneous products;
a production system dictated by product sales
the traditional production system in which
the implementation of all practices and policies
an inventory ordering system in which a red
responsibility accounting system
an accounting information system for successively higher-level managers about the performance of segments or subunits under the control
Society of Management Accountants of Canada
the professional body representing an influential and diverse
standard cost system
a valuation method that uses predetermined
Statement on Management Accounting (SMA)
a pronouncement developed and issued by the management
statistical process control (SPC)
the use of control techniques that are based on the theory that a process has natural variations in it over time, but uncommon variations
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
the cooperative strategic planning,
the use of all techniques that help an organization achieve its goals
total quality management (TQM)
a structural system for creating organization-wide participation in planning and implementing a continuous improvement process that exceeds
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