Unit 5: Vocabulary

To pass this unit, please study the 15 vocabulary words below.
additional
in addition to, extra
His promotion will mean additional work, but also additional pay.
assist
help, or make easier
Having correct and timely financial information assists in making operational decisions.
benchmarks
a standard by which something can be measured or assessed
The recently released 2012 earnings benchmark figures show that CPAs are earning more than in 2011.
budgeting
the process of creating set financial targets which should be met
A lot of companies fell short of the budgeting expectations because of the unexpected impact of the financial crisis.
draft
prepare a written version of
The lawyer drafted the contract and sent it to his client for approval.
entity
a person, partnership, organization, or business that has a legal and separately identifiable existence
A limited company is a separate legal entity from its members.
forecast
estimate or calculate in advance
By studying the previous year's accounts and considering any changes in the market, you can forecast the financial state of the company 12 months in advance.
in-depth
carefully worked out, detailed or thorough
Management accountants need an in-depth knowledge of finance and management as well as accountancy to be successful.
indicate
show, be a sign of
The financial report indicates that the company has exceeded its expectations.
management accounting
the process of preparing management reports and accounts that provide accurate financial and statistical information
The management accounting team finished their analysis of production costs and presented their findings to the board of managers.
overheads
the ongoing administrative expenses of a business which cannot be matched to any specific business activity
In an attempt to try and reduce overheads the company switched water suppliers and cancelled the 'free lunch' programme for staff.
period
an interval of time characterized by the occurrence of a certain condition, or event
The accounting period for tax reporting is 12 months from the 1st of January.
risk
the possibility of suffering harm or loss
It is important to minimize the risk to a company by having all the relevant information before making a decision.
takeover
the transfer of control of a firm from one group of shareholders to another group of shareholders
AOL's takeover of Timewarner was one of the largest acquisitions in business history.
variance
the difference between two figures
The company expected costs to be 100,000 but the actual costs were 120,000 so the director asked about the reason for the variance.
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