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Management Control System: It is the process of comparing actual performance with standards and taking any necessary corrective

action. Control Environment: It is one of the key component of an entity is interial control; it sets the tone of an entity, influence the control consciousness of people within all organization and is the foundation for all other components of the internal control system. Strategy: It is the overall plan of the firm deploying its resources to establish a favourable position and complete successfully against its rivals. Responsibility Centre: A department, which is headed by the responsible person, i.e., the manager of that particular function. Expenses Centre: The responsibility centre which is incurs only expenses, and measures them, is known as expenses centre. Profit Centre: The responsibility centre which is measured in terms of both the expenses incurred as well as revenue earned is known as profit centre. Investment Centre: It is the responsibility centre at which the manager is responsible for the effective utility of assets in order to earn the best rate of return out of the investments or assets employed. Transfer Pricing: The pricing of contributions (assets, tangible and intangible, services and funds) transferred within an organization. Full Cost: It is the material, labour and overhead costs required to produce and ship the product to the buying unit. Cost Plus Pricing: Under this method, the price is set to cover costs and predetermined percentage of profit. Marginal Cost Pricing: In this method, fixed costs are ignored and prices are determined on the basis of marginal cost. Budget: A statement of planned allocation of resources expressed in financial or numerical terms. Budgetary Control: It is the establishment of budgets relating to the responsibilities of executives to the requirements of a policy and the continuous comparison of actual with budgeted result, either to secure by individual action, the objective of that policy or to provide a basis for its revision. Production Budget: It is a forecast of the production for the budget period. It may be expressed in units or standard hours. Zero-based Budgeting: The system of budgeting that requires managers to justify their entire bedget request rather than simply to refer to budget amount established in previous year. Sales Budget: A forecast of total sales expressed in term of money and quantity.

Materials Budget: It shows the detail of raw materials to be consumed in the process of production. Labour Budget: It shows the details of labour requirements in quantity, with estimated costs. Manufacturing Overhead Budget: It shows the estimated costs of indirect materials, indirect labour and indirect manufacturing expenses during the budget period. Fixed Budget: A budget designed to remain unchanged irrespective of the level of activity actually attained. Flexible Budget: Abudget designed to change in accordance with level of activity actually attained. Variance Analysis: It quantifies the deviations from the time-phased budget based on the work accomplished and cost data collected . Schedule Variance: Difference between the budgeted cost of work performed and the budgeted cost of work schedule. Cost Variance: Difference between the budgeted cost of work performed and actual cost of work performed. Schedule Performance Index: Ratio of the budgeted cost of work performed to the budgeted cost of work scheduled and represents the schedule efficiency of the project. Cost Performance Index: It is the ratio of the budgeted cost of work performed to the actual cost of work performed and represents the cost efficiency of the project. Reporting: This refers to recording of information in a suitable format for presentations of the same to others for information, decision or action. Total Quality Management (TMQ): Organisational philosophy and strategy that makes quality a responsibility of all employees. Kaizen: Continuous and never ending improvemet involving everyone in the organization. Benchmarking: The continuous process of comparing an organisations strategies, products or processes with those of best-in-class organizations. Quality Circles: A group of 6 to 12 volunteer employees who meet regularly to discuss and solve problems affecting the quantity of their work. JIT (Just-in-time): An inventory strategy implemented to improve the return on investment of a business by reducing in process inventory and its carrying costs. Decision Support System (DSS): Decision support systems are a class of computer based information systems including knowledge based systems that support decision making activities.

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