Cost Accounting Chapter 1

Front 1

value chain

Back 1

the set of activities that transforms raw materials into the goods and services end users purchase and consume.

Front 2

Value added activities

Back 2

those activities that customers perceive as adding utility to the goods or services they purchase

Front 3

research and development activities

Back 3

he creation and development of ideas related to new products, services, or processes

Front 4

research and development costs

Back 4

research personnel
patent applications
laboratory facilities

Front 5

Design Activities

Back 5

the detailed development and engineering of products services or processes

Front 6

design costs

Back 6

Design center
engineering facilities used to develop and test prototype

Front 7

Purchasing activities

Back 7

the acquisition of goods or services used to produce a good or service.

Front 8

purchasing costs

Back 8

machines and equipment
Factory personnel

Front 9

Marketing and sales activities

Back 9

the process of informing potential customers about attributes of products or services that leads to their sale.

Front 10

Marketing and sales costs

Back 10

Advertising
focus group travel
product placement

Front 11

Distribution activities

Back 11

the process for delivering products or services to customers

Front 12

distribution costs

Back 12

trucks
fuel
web site creation, hosting, and maintenance

Front 13

Customer service activities

Back 13

the support activities provided to a customer for a good or service

Front 14

Customer service costs

Back 14

call center personnel
returns processing
warranty repairs

Front 15

supply chain

Back 15

set of firms and individuals that sell goods and services to the firm

Front 16

Distribution activities

Back 16

the process for delivering products or services to customers

Front 17

distribution costs

Back 17

trucks
fuel
web site creation, hosting, and maintenance

Front 18

Customer service activities

Back 18

the support activities provided to a customer for a good or service

Front 19

Customer service costs

Back 19

call center personnel
returns processing
warranty repairs

Front 20

supply chain

Back 20

set of firms and individuals that sell goods and services to the firm

Front 21

distribution chain

Back 21

set of firms and individuals that buys goods and services from the firm

Front 22

financial accounting

Back 22

field of accounting that reports financial position and income according to accounting rules.

Front 23

cost accounting

Back 23

field of account that measures, records and reports information about costs

Front 24

non value added activities

Back 24

activities that do not add value from the customers perspective

Front 25

cost benefit analysis

Back 25

the process of comparing costs and benefits (generally savings or increased income) of a proposed change within an organization

Front 26

cost drivers

Back 26

factors that drive of cause costs

Front 27

differential costs

Back 27

costs that change as a result of a particular course of action

Front 28

differential revenue

Back 28

revenue that change as a result of a particular course of action

Front 29

responsibility center

Back 29

A specific unit of a company that is assigned to a manger that is in charge of its operations and resources.

Front 30

budget

Back 30

financial plan of revenues and resources required to carry out activities and meet goals

Front 31

activity based costing

Back 31

costing method that first assigns costs to activities and then assigns them to products based on the products consumption of activities

Front 32

performance measures

Back 32

metric that indicates how well an individual, business unit, product or firm is working

Front 33

benchmarking

Back 33

continually measuring a companies own products, services and activities against its competitors' performance.

Front 34

just in time(JIT)

Back 34

in production or purchasing units are produced or purchased just in time for its use

Front 35

lean accounting

Back 35

a cost accounting system that provides measures at the working cell or process level and minimizes wasteful or unnecessary transaction processes

Front 36

customer relationship management

Back 36

system that allows firms to target profitable customer by assessing customer revenue and costs

Front 37

outsourcing

Back 37

having one or more of the firms activities performed by another firm or individual in the supply or distribution chain

Front 38

total quality management

Back 38

management method by which the organization seeks to excel on all dimensions with the customer ultimately defining quality

Front 39

cost of quality

Back 39

system that identifies the costs of producing low quality items, including rework, returns, and lost sales

Front 40

enterprise resource planning

Back 40

information technology that links the various processes of the enterprise into a single comprehensive information system