Question

Match each concept with its best description by entering its letter A through E in the blank.

1. Just-in-time manufacturing	A. Focuses on quality throughout the production process.
2. Continuous improvement	B. Flexible product design can be modified to accommodate customer choices.
3. Customer orientation	C. Every manager and employee constantly looks for ways to improve company operations
4. Total quality management	D. Reports on financial, social, and environmental performance.
5. Triple bottom line	E. Inventory is acquired or produced only as needed.

Short answer

1. Just-in-time manufacturing	E. Inventory is acquired or produced only as needed.
2. Continuous improvement	C. Every manager and employee constantly looks for ways to improve company operations.
3. Customer orientation	B. Flexible product design can be modified to accommodate customer choices.
4. Total quality management	A. Focuses on quality throughout the production process.
5. Triple bottom line	D. Reports on financial, social, and environmental performance.

Step-by-step solution

Definition of Managerial Accounting

The accounting branch that deals with the analysis and the interpretation of the financial information to the managers of the business entity is known as managerial accounting. It is different from financial accounting because it provides information to be used by internal users.

Explanation for each concept

Just-in-time manufacturing: The production model under which the business entity produces the goods to meet the actual demand without producing any surplus unit is known as just-in-time manufacturing.

Continuous improvement: Continuous improvement is the concept under which employees working at each level in the business organization continuously find ways to improve quality, effectiveness, and profitability.

Customer orientation: A business approach in which the needs of the customer are given priority over the needs of the company. Under this approach, the business entity tries to develop products according to the customer’s needs.

Total quality management: Total quality management is the approach under which the business entity tries to improve the efficiency of the product by focusing on the quality at each production level.

Triple bottom line: A concept used by the business entity in which the business entity reports the social and environmental impact of the business operation along with the financial information of the business entity.