Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
13 Cards in this Set
- Front
- Back
|
differential analysis
|
The area of accounting concerned with the effect of alternative courses of action on revenues and costs.
|
|
|
differential cost
|
The amount of increase or decrease in cost expected from a particular course of action compared with an alternative.
|
|
|
differential income (or loss)
|
The difference between the differential revenue and the differential costs.
|
|
|
differential revenue
|
The amount of increase or decrease in revenue expected from a particular course of action as compared with an alternative.
|
|
|
markup
|
An amount that is added to a “cost” amount to determine product price.
|
|
|
opportunity cost
|
The amount of income forgone from an alternative to a proposed use of cash or its equivalent.
|
|
|
product cost concept
|
A concept used in applying the cost-plus approach to product pricing in which only the costs of manufacturing the product, termed the product cost, are included in the cost amount to which the markup is added.
|
|
|
production bottleneck
|
A condition that occurs when product demand exceeds production capacity.
|
|
|
sunk cost
|
A cost that is not affected by subsequent decisions.
|
|
|
target costing
|
The target cost is determined by subtracting a desired profit from a market method determined price. The resulting target cost is used to motivate cost improvements in design and manufacture.
|
|
|
theory of constraints (TOC)
|
A manufacturing strategy that attempts to remove the influence of bottlenecks (constraints) on a process.
|
|
|
total cost concept
|
A concept used in applying the cost-plus approach to product pricing in which all the costs of manufacturing the product plus the selling and administrative expenses are included in the cost amount to which the markup is added.
|
|
|
variable cost concept
|
A concept used in applying the cost-plus approach to product pricing in which only the variable costs are included in the cost amount to which the markup is added.
|
