Ethics Overview

Ethics is the study of questions of morality, the search to understand what is right, wrong, good, and bad. It is the branch of philosophy that systematically studies moral ideals and goals, motives of choice, and patterns of good and bad conduct. Ethics is derived from the Greek ethikos, meaning character. Issues of personal character, and the search for the best patterns for living, were at the core of Greek ethical philosophy. In contrast, moral is from the Latin more (MOR-ay). The Romans...

Inventory Control

Inventory control is the implementation of management's inventory policies in a manner that assures that the goals of inventory management are met. Wise control of inventory is often a critical factor in the success of businesses in which inventories are significant. The goal of inventory control is to be sure that optimum levels of inventories are available, that there are minimal stockouts (i.e., running out of stock), and that inventory is maintained in a safe, secure place and is always...

Managementleadership Styles

Leading should not be considered the same as managing. Business leaders who do not understand the difference between the functions roles of leading and managing are quite likely to misinterpret how they should carry out their duties to meet organizational goals. While some managers are high-quality leaders, others only manage resources and don't lead their subordinates. Lead ership is one of the four primary activities that are used to influence others. As such, it is a subcategory of the...

Work Groups Teams

Competition in business today has created a desire and need for work groups. The delegation of duties is occurring through this redesign of the work process. The delegation process is in turn creating team environments in organizations. The redesign of the work process is also due to downsizing, a collapsing of the organization's ranks, and the retiring of employees. David Cleland (1996) states that the traditional model of organizational design is an endangered species'' (p. vii). As teams are...

Economic Analysis

Economic forces affect decisions made in personal business activities, as well as within business organizations, government entities, and nonprofit organizations. Changes in economic conditions affect and are affected by supply and demand, strength of buying power and the willingness to spend, and the intensity of competitive efforts. These changes propel fluctuations in the overall state of the economy and influence courses of action and the timeliness of actions. Nonprofit organizations, for...

Records Management

Although records and information management is a crucial function of most companies today, records management at one time was not recognized as being important in the organization. Advancements in technology and the reproduction of electronic documents are steadily causing organizations to change the way they think about records management. Marcel Robles and Mark Langemo (1999) define records management as The professional management of information in the physical form of records from the time...

Scientific Management

Early attempts to study behavior in organizations came from a desire by industrial efficiency experts to answer this question What can be done to get workers to do more work in less time It is not surprising that attempts to answer this question were made at the beginning of the twentieth century, since this was a period of rapid industrialization and technological change in the United States. As engineers attempted to make machines more efficient, it was natural to focus efforts on the human...

Facsimile Reproduction

Facsimile reproduction means making an exact copy of anything imprinted on paper by using electronic devices such as copiers, fax machines, and scanners. Material may be reproduced electronically on a computer's monitor (soft copy), or reproduced on paper (hard copy). In reproducing information either electronically or on paper, one wants a quality copy that will be acceptable for the task at hand. The first method used to make a printed copy was carbon paper. Although a Britain named J. W....

Statements On Management Accounting

Statements on Management Accounting (SMA) are promulgated (produced, issued, and implemented) to reflect official positions of the Institute of Management Accountants (IMA), the largest and most prominent management accounting organization in the world. The IMA is an organization of accounting professionals that has a membership of more than 100,000. One of the chief activities of the IMA is to conduct and sponsor research in management accounting. In 1969 the IMA (at that time operating using...

Government Financial Reporting

Government financial reporting is the process whereby governments report their financial position and activities to the public at large. These reports are the standard that citizens, oversight bodies, and other stakeholders use to judge their government's efficiency, effectiveness, and overall financial condition. This article examines government financial reporting from a historical perspective, and today it also looks at contemporary issues and possible future trends. Government financial...

Work Measurement

Work measurement is the careful analysis of a task, its size, the method used in its performance, and its efficiency. The objective is to determine the workload in an operation, the time that is required, and the number of workers needed to perform the work efficiently. Work measurement helps to determine the time spent performing any process and offers a consistent, comparable methodology for establishing labor capacities. Work measurement can be extremely effective at informing supervisors of...

Marketing Concept

Business philosophy has experienced three major shifts during the history of commerce in the United States. It has moved from a production orientation to a sales orientation to the current consumer orientation. Each of these philosophies has reflected the economic environment of its time. From the early years of the country into the late 1920s, businesses had limited production capacity and continuous demand for their products. Under those circumstances, it was inevitable that the prevailing...

Sexual Harassment

Sexual harassment is a form of sex discrimination that violates Title VII of the Civil Rights Act of 1964, as amended. It is defined by the Equal Employment Opportunity Commission as unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature when submission to or rejection of this conduct (1) explicitly or implicitly affects an individual's employment, (2) unreasonably interferes with an individual's work performance, or (3) creates an...

Sole Proprietorship

A sole proprietorship is the simplest form of business ownership. Not surprisingly, the vast majority of small businesses begin their existence as sole proprietorships. A sole proprietorship has but one owner. That sole owner may engage in any form of legal business activity any time and anywhere. Other than the various local and state business licenses that every business must purchase regardless of type of ownership, no legal formalities are required to start or operate the business. The...

Standard Costing

Costing is the identification of the value of resources used for specified goods or services. One purpose of costing is to determine what resources were required to provide the goods or services. A second purpose is to provide a guide to resource usage through the use of budgets that clearly identify managers' responsibility. It is the second purpose that is considered in the following discussion. METHODS OF COSTING IDENTIFIED IN BUDGETS Budget figures may be based on actual, budgeted, or...

Marketing Research

Accelerating product cycles, easy access to information on products and services, highly discerning consumers, and fierce competition among companies are all a reality in the world of business. Too many companies are chasing too few consumers. In his book Kotler on Marketing How to Creat, Win, and Dominate Markets,'' Philip Kotler, marketing guru and a professor at Northwestern University's Kellogg Graduate School of Management, discusses what a business has to do to be successful. He wrote,...

Target Marketing

A target market is a set of buyers sharing common needs or characteristics that a company decides to serve. A company identifies a target market in order to organize its tasks and cope with the particular demands of the marketplace. Target marketing forms the foundation of a modern marketing strategy because doing it well helps a company be more efficient and effective by focusing on a certain segment of its market that it can best satisfy. Targeting also benefits consumers because a company...

Careers In Accounting

Accounting positions range from bookkeeping clerks who maintain financial data in computer and paper files to chief financial officers who are responsible for providing leadership in the design and operations of a total accounting information system and its output of financial statements. OVERVIEW OF ACCOUNTING AS AN OCCUPATION FIELD The U.S. Department of Labor identifies accounting essentially at two levels. At the executive, administrative, and managerial'' occupational level, accountants...

Corporate Education

Civilization has entered the Information Age, where business is knowledge-driven. Industries whose product lines either provide knowledge (e.g., software, information technology, and biotechnology) or process knowledge (e.g., telecommunications, banking, and advertising) place an increasing emphasis on speed, flexibility, technical expertise, and innovation. Consequently, it is imperative to the survival of any business organization to continually upgrade the knowledge base and skill levels of...

American Management Association

The American Management Association AMA is the world's leading membership-based management development organization. The business education and management development programs offered by the AMA provide its members and customers the opportunity to learn superior business skills and the best management practices available. The AMA fulfills this goal through a variety of seminars, conferences, assessments, customized learning solutions, books, and on-line resources. The range of programs offered...

N

See National Association of Cost Accountants Nader, Ralph, 163, 180, 181, 182 NAFTA. See North American Free Trade Agreement NAIC. See National Association of Insurance Commissioners NAICS. See North American Industry Classification System Napier, John, 461 Napier's Bones,'' 461 Narrative Appraisal Technique, 686-687 NASBA. See National Association of State Boards of Accountancy NASBA NASD. See National Association of Security Dealers NASDAQ, 85, 86, 87, 699, 805, 807, 810-811...

Organizational Structure

Organizational Structure Matrix

One of the most challenging tasks of a business may be organizing the people who perform its work. A business may begin with one person doing all the necessary tasks. As the business becomes successful and grows, however, there is generally more work, and more people are needed to perform various tasks. Through this division of work, individuals can become specialists at a specific job. Because there are several people often in different locations working toward a common objective, there must...

Foreign Corrupt Practices Act Of 1977

The Foreign Corrupt Practices Act of 1977 FCPA evolved from investigations by the Office of the Special Prosecutor that provided evidence of illegal acts perpetrated by U.S. firms in foreign lands. More than 400 U.S. companies admitted to making questionable payments to various foreign governments and political parties as part of an amnesty program U.S. Department of Justice http www.usdoj.gov . Given the environment of the 1970s and the proliferation of white-collar crimes e.g., insider...

Chief Financial Officers Act And Federal Financial Management

The Chief Financial Officer Act of 1990 CFO Act provided for tight financial control over agency operations and the central coordination of financial management functions to support an efficient administration of the executive branch. It centralizes organization of federal financial management, required long-term strategic planning to sustain modernization, and began the development of projects to produce audited financial statements for the federal government. As Title IV of the Government...

Deca

DECA is a national student organization for individuals preparing for marketing, management, and entrepreneurship careers. With 180,000 members, DECA serves as the companion to marketing education programs within secondary and post-secondary schools across all fifty states of the United States, its territories, and Canada. As a co-curricular organization, DECA is an integral part of classroom instruction a vehicle through which students learn marketing and management, and are motivated to...

Consumer Behavior

Associative Network

In September 1999, Polaroid Corparation introduced to the U.S. market a small, instant camera with a cheap lens that produced fuzzy, postage-stamp-sized photographs that could double as stickers. Scientists and engineers at Polaroid, holding true to the company's long-standing reputation for building high-quality, technologically innovative products, were skeptical. They worried that this new instant camera, called the I-Zone Instant Pocket Camera, would taint their reputation. Before becoming...

Fair Packaging And Labeling Act Of 1966

Many consumer problems have been, and in some instances still are, caused by incorrect and even fraudulent information disclosure on products and through advertising. The Fair Packaging and Labeling Act of 1966 was passed during the Johnson administration to ensure that consumers have the information they need to choose wisely among competing products. The act directs businesses to disclose necessary information truthfully. Product labels must include such basic information as ingredients and...

Accounting Cycle

The primary objectives of the accounting function in an organization are to process financial information and to prepare financial statements at the end of the accounting period. Companies must systematically process financial information and must have staff who prepare financial statements on a monthly, quarterly, and or annual basis. To meet these primary objectives, a series of steps is required. Collectively these steps are known as the accounting cycle. The steps, applicable to a manual...

Careers In Law For Business

A wide variety of choices are available for a career in law. However, work and determination are required to complete law school and pass a state bar examination. To be admitted to law school, students must have completed a bachelor's degree, although generally without restriction concerning the choice of undergraduate major. Law students have bachelor's degrees in business, engineering, science, history, politics, and many other disciplines. The individual states administer the licensing of...

Electronic Commerce

No single force embodies our electronic transformation more than the evolving medium known as the Internet. Internet technology is having a profound effect on the global trade in services,'' according to a White House paper in These Carnegie Mellon University students were among the first to graduate with a Master of Science in Electronic Commerce. These Carnegie Mellon University students were among the first to graduate with a Master of Science in Electronic Commerce. 1997. Electronic...

Ethics In Management

Managers in today's business world increasingly need to be concerned with two separate but interrelated concerns business ethics and social responsibility. Perhaps the most practical approach to view ethics is as a catalyst that causes managers to take socially responsible actions. The movement toward including ethics as a critical part of management education began in the 1970s, grew significantly in the 1980s, and is expected to continue growing. Hence, business ethics is a critical component...

Certified Public Accountant

The designation certified public accountant CPA is conferred by a state or jurisdiction to individuals to practice as a licensed certified public accountant. The licensing of CPAs protects the public from incompetent individuals performing substandard accounting work. In the United States, there are fifty-four states or jurisdictions with laws and regulations on the requirements and obligations of licensed CPAs. In 1896, New York State passed the first accountancy law to test the qualifications...

Ethics In Accounting

Ethics in accounting is of utmost importance to accounting professionals and those who rely on their services. Certified Public Accountants CPAs and other accounting professionals know that people who use their services, especially decision makers using financial statements, expect them to be highly competent, reliable, and objective. Those who work in the field of accounting must not only be well qualified but must also possess a high degree of professional integrity. A professional's good...

Careers Overview

The concept of careers ranges from descriptions of jobs, occupations, or vocations to the pattern of work and work-related activities that develop through a lifetime. Career is defined in the Merriam-Webster Collegiate Dictionary 1999 as a field for or pursuit of consecutive progressive achievement especially in public, professional, or business life.'' The perception of a career has various connotations. A career could be a job. A job, again as defined in the Merriam-Webster Collegiate...

List of Contributors

Mohammad Abdolmohammadi Bentley College AUDITING San Diego State University INFORMATION SYSTEMS PROGRAMMING University of Nebraska PROFESSIONAL EDUCATION Southern Illinois University, Carbondale BEHAVIORAL SCIENCE MOVEMENT EMPLOYEE DISCIPLINE SCIENTIFIC MANAGEMENT Linda J. Austin Tomball, Texas CAREERS IN INFORMATION PROCESSING DOCUMENT PROCESSING OFFICE TECHNOLOGY University of Massachusetts, Dartmouth Utah State University, Logan INTERNET Stephen A. Austin State University E-MAIL Northeastern...

Accounting Historical Perspectives

With the establishment of the first English colonies in America, accounting or bookkeeping, as the discipline was referred to then, quickly assumed an important role in the development of American commerce. Two hundred years, however, would pass before accounting would separate from bookkeeping, and nearly three hundred years would pass before the profession of accounting, as it is now practiced, would emerge. For individuals and businesses, accounting records in Colonial America often were...

Audit Committees

Audit committees are a key institution in the context of corporate governance because they help boards of directors fulfill their financial and fiduciary responsibilities to shareholders. Through their audit committees, boards of directors establish a direct line of communication between themselves and the internal and external auditors as well as the chief financial officer. Such an organizational structure and reporting re sponsibility in an environment of free and unrestricted access enables...

Assurance Services

The Universe Assurance Services

Assurance services are a class of services provided by certified public accountants CPAs in public practice. While the term is sometimes used inconsistently among individual CPA firms, the American Institute of Certified Public Accountants AICPA Special Committee on Assurance Services defined assurance services as independent professional services that improve the quality of information, or its context, for decision-makers.'' Assurance services are rooted in the CPA's tradition of independent...

Certified Internal Auditor

A certified internal auditor CIA is an individual who has met the requirements for certification as established by the Institute of Internal Auditors IIA . Requirements relate to education, experience, and successful completion of an examination. Achieving the credential as a certified internal auditor is tangible evidence of meeting professional qualifications established by the IIA. The IIA, established in 1941 at a meeting in New York City, now has a worldwide membership of more than 70,000...

Circular Flow

Circular Flow Economy

Circular flow describes how a market economy works. A market economy is one in which individuals influence directly what is produced, marketed, and consumed. Individuals do this by spending money on what they want. This then directs producers to produce goods and services that individuals will consume. The amount of goods and services that are made available is related to the laws of supply and demand. A model that best depicts how goods and services flow in exchange for money is called the...

Antitrust Legislation

Cartoon Robinson Patman Act

In the United States, toward the last part of the nineteenth century, widespread business combinations known as trust agreements existed. These agreements usually involved two or more companies that combined with the purpose of raising prices and lowering output, giving the trustees the power to control competition and maximize profits at the public's expense. These trust agreements would result in a monopoly. To combat this sort of business behavior, Congress passed antitrust legislation. In...

Careers In Economics

Economists study how society uses, regulates, and distributes its natural and human-made resources such as land, labor, raw materials, and machinery to produce goods and services Horizons, 2000 . In simpler terms, they study how effectively society meets its human and material needs. Economists also study how economic systems address three basic questions What shall we produce How shall we produce it For whom shall we produce it They then compile, process, and interpret the answers to these...

Acknowledgments

The editors wish to thank the copyright holders of the excerpted criticism included in this volume and the permissions managers of many book and magazine publishing companies for assisting us in securing reproduction rights. We are also grateful to the staffs of the Detroit Public Library, the Library of Congress, the University of Detroit Mercy Library, Wayne State University Purdy Kresge Library Complex, and the University of Michigan Libraries for making their resources available to us....