Braunz Managerial Accounting 3Rd Edition Chapter 4

Front 1

Focuses on activities as the fundamental cost objects. The cost of those activities become building blocks for compiling the indirect costs of products, services, and customers.

Back 1

Activity-Based Costing (ABC)

Front 2

Using Activity-based cost information to make decisions that increase profits while satisfying customers' needs.

Back 2

Activity-Based Management (ABM)

Front 3

Costs incurred to detect poor quality goods or services.

Back 3

Appraisal costs

Front 4

Activities and costs incurred for every batch, regardless of the number of units in the batch.

Back 4

Batch-Level Activities

Front 5

Overcosting some products while undercosting other products.

Back 5

Cost Distortion

Front 6

A report that lists the costs incurred by the company related to quality. The costs are categorized as prevention costs, appraised costs, internal failure costs, and external failure costs.

Back 6

Costs of Quality Report

Front 7

The time that elapses between receipt of a customer order and delivery of the product of service.

Back 7

Customer Response Time

Front 8

Separate manufacturing overhead rates established for each department.

Back 8

Departmental Overhead Rates

Front 9

An Acronym for the eight wastes: Defects, Overproduction, Waiting, Not utilizing people to their full potential, Transportation, Inventory, Movement, Excess processing.

Back 9

DOWNTIME

Front 10

Defects, Overproduction, Waiting, Not utilizing people to their full potential, Transportation, Inventory, Movement, Excess processing.

Back 10

Eight Wastes

Front 11

Costs incurred when the company does not detect poor-quality goods or services until after delivery is made to customers.

Back 11

External Failure Costs

Front 12

Activities and costs incurred no matter how many units, batches, or products are produced in the plant.

Back 12

Facility Level Activities

Front 13

A workplace organization system comprised of the following steps: Sort, Set in order, Shine, Standardize, and Sustain.

Back 13

5S

Front 14

Costs incurred when the company detects and corrects poor-quality goods or services before making delivery to customers.

Back 14

Internal Failure Costs

Front 15

An inventory management philosophy that focuses on purchasing raw materials just in time for production and completing finished goods just in time for delivery to customers.

Back 15

Just in Time

Front 16

A Japanese work meaning, "change for the better."

Back 16

Zaizen

Front 17

A management philosophy and strategy focused on creating value for the customer by eliminating waste.

Back 17

Lean Thinking

Front 18

The time that elapses between the start of production and the product's completion.

Back 18

Manufacturing Cycle time

Front 19

Activities that neither enhance the customer's image of the product or service nor provide a competitive advantage; also known as waste activities.

Back 19

Non-Value-Added Activities

Front 20

When overhead is allocated to every product using the same manufacturing overhead rate.

Back 20

Plantwide Overhead Rate

Front 21

A storage system used to reduce the waste of transportation and movement in which tools, materials, and equipment are stored in proximity to where they will be used most frequently.

Back 21

Point of Use Storage (POUS)

Front 22

Costs incurred to avoid poorquality goods or services.

Back 22

Prevention costs

Front 23

Activities and costs incurred for a particular product, regardless of the number of units or batches of the product produced.

Back 23

Product-Level Activities

Front 24

The rate of production needed to meet customer demand yet avoid overproduction.

Back 24

Takt Time

Front 25

A management philosophy of delighting customers with superior products and services by continually setting higher goals and improving the performance of every business function.

Back 25

Total Quality Management (TQM)

Front 26

Activities and costs incurred for every unit produced.

Back 26

Unit-Level Activities

Front 27

Eliminating waste in the system by making the company's processes as effective and efficient as possible.

Back 27

Value Engineering

Front 28

Activities for which the customer is willing to pay because these activities add value to the final product or service.

Back 28

Value-Added Activities

Front 29

Activities that neither enhance the customer's image of the product or service nor provide a competitive advantage; as known as non-value-added activities.

Back 29

Waste Activities