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An examination of a business's financial records to verify that they are accurate
What is an audit?
An estimation of revenue and expenses over a specified future period of time
What is a budget?
This type of control takes place while an activity is in progress
What is concurrent control?
A process improvement methodology designed to eliminate problems, remove waste and inefficiency, and improve working conditions to provide a better response to customers’ needs.
What is Lean Six Sigma?
Cost schedules that show how each cost should vary as the level of activity or output varies
What are variable budgets?
These controls take place before a process to make sure bad things do not happen in the first place
What are feedforward controls?
A type of a budgeting process that is based on the idea that a new budget can best be developed by making only some marginal changes to the current budget
What is incremental budgeting?
The use of formal systems of rules, roles, records, and rewards to influence, monitor, and assess employee performance
What is bureaucratic control?
A budget that does not take into account any circumstances resulting in the actual levels of activity achieved being different from those on which the original budget was based
What is a fixed budget?
A method of quality control which employs statistical methods to monitor and control a process
What is statistical process control?
The practice of examining the financial and operational results of a business, and only bringing issues to the attention of management if results represent substantial differences from the budgeted or expected amount
What is management by exception?
The entire process of making and selling commercial goods, including every stage from the supply of materials and the manufacture of the goods through to their distribution and sale
What is the supply chain?
This type of control focuses on the outputs of the organization after transformation is complete
What is feedback control?
A set of international standards on quality management and quality assurance developed to help companies effectively document the quality system elements needed to maintain an efficient quality system
What is ISO 9000?
A Japanese business philosophy regarding the processes that continuously improve operations and involve all employees
What is Kaizen?
A process of comparing the actual performance with the set standards of the company to ensure that activities are performed according to the plans and if not then taking corrective action
What is controlling?
A set of management tools and techniques designed to improve business by reducing the likelihood of error. It is a data-driven approach that uses a statistical methodology for eliminating defects
What is Six Sigma?
The business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company's own employees and staff
What is outsourcing?
A financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time
What is a balance sheet?
The consolidated process of gathering and organizing business data through an integrated software suite
What is enterprise resource planning (ERP)?
An independent examination of the financial statements prepared by the organization
What is an external audit?
The continual process of detecting and reducing or eliminating errors in manufacturing, streamlining supply chain management, improving the customer experience, and ensuring that employees are up to speed with training
What is total quality management (TQM)?
The strategy of lowering the time it takes to perform a process in order to improve productivity
What is reduced cycle time?
A set of rules and standards created to help companies reduce industrial waste and environmental damage
What is ISO 14000 series?
A visual representation of an organization's overall objectives and how they relate to one another
What is a strategy map?