Chapter 1, Problem 1.4DI

Match the descriptions that follow with the corresponding terms.

Descriptions:

1. _____ Inventory system in which goods are manufactured or purchased just as they are needed for sale.

2. _____ A method of allocating overhead based on each products use of activities in making the product.

3. _____ Systems that are especially important to firms adopting just-in-time inventory methods.

4. _____ Provides guidelines for companies to describe their sustainable business prac-tices to external parties.

5. _____ Part of the value chain for a manufacturing company.

6. _____ The U.S. economy is trending toward this.

7. _____ A performance-measurement approach that uses both financial and nonfinancial measures, tied to company objectives, to evaluate a company’s operations in an integrated fashion.

8. _____ Requires that top managers certify that the company maintains an adequate system of internal controls.

Terms:

(a) Activity-based costing

(b) Balanced scorecard

(c) Total quality management (TQM)

(d) Research and development, and product design

(e) Service industries

(f) Just-in-time (JIT) inventory

(g) Sarbanes-Oxley Act (SOX)

(h) Global Reporting Initiative

Identify trends in managerial accounting.

(LO 4), C