Finance Terms

Front 1

Absorption

Back 1

Method where manufacturing costs are assigned to products and non-manufacturing costs are expenses in current period

Front 2

Accelerated Depreciation

Back 2

Method to depreciate fixed assets to write off book value before useful life assumption

Front 3

Available capacity

Back 3

Amount of equipment time available for production

Front 4

Batches per Campaign

Back 4

Number of consecutive batches of a SKU that can be manufactured in order to minimize number of setups

Front 5

Bill of Material (BOM)

Back 5

List of quantities of ingredients that make up a product. Includes other info like expected scrap rate

Front 6

Business unit contribution

Back 6

Sure profit and loss financial results includes both controllable and uncontrollable expenses

Front 7

Commercial Volumes

Back 7

Demand that drives site production plan

Front 8

Costing Lot Size

Back 8

Typical batch produced of certain SKU

Front 9

Cost Centers

Back 9

"Cost collection centers" created to budget and report related costs

Front 10

Cost Centers

Back 10

"Cost collection centers" created to budget and report related costs

Front 11

Crew Sizes

Back 11

Number of direct personnel needed to set up and run equipment

Front 12

Direct Labor

Back 12

People who have to be present to run equipment. Variable cost portion of labor pool

Front 13

Direct Labor

Back 13

People who have to be present to run equipment. Variable cost portion of labor pool

Front 14

Direct Material

Back 14

Costs include raw, intermediates, and packaging components purchased and identified in BOM and used in manufacturing that are a part of the product or consumed in the process

Front 15

Direct Labor

Back 15

People who have to be present to run equipment. Variable cost portion of labor pool

Front 16

Direct Material

Back 16

Costs include raw, intermediates, and packaging components purchased and identified in BOM and used in manufacturing that are a part of the product or consumed in the process

Front 17

Disposal of Assets

Back 17

Cost associated with taking GMS Mt Vernon assets out of service at its disposal

Front 18

Disposal Orders

Back 18

Documentation required to destroy unsaleable inventory

Front 19

Disposal Orders

Back 19

Documentation required to destroy unsaleable inventory

Front 20

Efficiency

Back 20

Difference between standard cost and actual cost reported. Includes material, labor, quality, and overhead

Front 21

Flex Labor

Back 21

People who "subsidize" Labor on the line to run. Usually hand packers. Varies SKU to SKU

Front 22

Flex Labor

Back 22

People who "subsidize" Labor on the line to run. Usually hand packers. Varies SKU to SKU

Front 23

Finished goods

Back 23

Goods that have been completed

Front 24

Halb

Back 24

Intermediate product that is a step in the process. Ex) granulation

Front 25

Indirect fixed labor

Back 25

People who have assigned roles with little or no variation in task regardless of changes in volume

Front 26

Indirect fixed labor

Back 26

People who have assigned roles with little or no variation in task regardless of changes in volume

Front 27

Indirect variable labor

Back 27

Flexible operators who can complete several different task dependent on the requirements for the day. Often partial people shared between lines. Volume driven

Front 28

Intercompany Profit

Back 28

Selling mark up on products received from other BMS sites

Front 29

Inventory

Back 29

Materials used in production

Front 30

Inventory

Back 30

Materials used in production

Front 31

Labor Pools

Back 31

Groups of people dedicated to specific tasks or common technical capabilities in manufacturing process

Front 32

Manufacturing Write-Off

Back 32

The disposal of inventory deemed unacceptable due to manufacturing issues

Front 33

Misc. COGS

Back 33

Costs charged to tech ops which can't be associated to specific products or groups of products and aren't captured in conversion costs

Front 34

Other Income & Expense

Back 34

Non operating revenues and expenses not directly related to normal business

Front 35

Operational BUC

Back 35

Method to measure ITO's financial effectiveness with respect to controllable operations

Front 36

Overhead

Back 36

General site costs associated with non production related cost centers

Front 37

Packaging component

Back 37

Materials an supplies used in the packaging of products into finished goods state

Front 38

Period Expenses

Back 38

Cost that are not included in inventory. Expensed as they occur

Front 39

Planned Volumes

Back 39

Market driven volume that is established during budget and projection

Front 40

Purchase Price

Back 40

Standard cost of materials acquired from third party

Front 41

Purchase Price Variance

Back 41

Difference between standard purchase price and actual price paid

Front 42

P01

Back 42

First projection of year

Front 43

P02

Back 43

Second projection of year

Front 44

Quality

Back 44

Quality Testing Costs include activities by Quality Control/Quality Assurance that can be specifically identified to product

Front 45

Rates

Back 45

Means by which labor, equipment, and overhead expenses are assigned to products

Front 46

Raw Material

Back 46

Raw and packaging material to be consumed in production process or in rendering of services

Front 47

Redress

Back 47

Any activity associated with a work step that wasn't successful in initial production run

Front 48

Reserve Capacity

Back 48

Difference between machine hours of available capacity and planned capacity based on production expected

Front 49

Revaluation

Back 49

Inventory on hand at end of year will be revalued at New Years standard costs Jan 1

Front 50

Routers

Back 50

Listing of activities required to produce product

Front 51

Routers

Back 51

Listing of activities required to produce product

Front 52

Runtime

Back 52

Time to run the specific equipment and complete specific production

Front 53

Scrap Percentage

Back 53

Method of applying cost of inherent waste of the production process to product costs

Front 54

Scrap Percentage

Back 54

Method of applying cost of inherent waste of the production process to product costs

Front 55

Set up hours

Back 55

Time to set up the equipment between batches of a SKU

Front 56

Specified

Back 56

Cost that are specified for a practical one time initiative

Front 57

Specified

Back 57

Cost that are specified for a practical one time initiative

Front 58

Standard Cost

Back 58

Most accurate manufacturing costs that's can be forecasted for the coming budget year

Front 59

Variances

Back 59

Difference between actual costs and standard costs or budget

Front 60

Volume

Back 60

Production demand that is forecasted from markets

Front 61

Work Centers

Back 61

Machines and or labor resources identified in establishment of a router and facilitate assignment of expenses to a product

Front 62

Work Centers

Back 62

Machines and or labor resources identified in establishment of a router and facilitate assignment of expenses to a product

Front 63

Work in Progress

Back 63

Inventory that has been partially converted through production process but has additional work to be done before it can be in finished goods category

Front 64

Yield loss

Back 64

Way to calculate success in producing some product compared with max amount you can possibly produce

Front 65

BOM

Back 65

Bill of materials

Front 66

BOM

Back 66

Bill of materials

Front 67

BNL

Back 67

Bulk unlabeled blisters

Front 68

BNU

Back 68

Bulk unlabeled bottles

Front 69

BPC

Back 69

Batches per campaign

Front 70

BUC

Back 70

Business unit contribution

Front 71

CIP

Back 71

Construction in progress

Front 72

CLS

Back 72

Costing lot size

Front 73

CAR

Back 73

Capital appropriation request

Front 74

CAR

Back 74

Capital appropriation request

Front 75

DAR

Back 75

Disposal of assets request

Front 76

HALB

Back 76

An intermediate step in the process

Front 77

ICP

Back 77

Intercompany profit

Front 78

ICP

Back 78

Intercompany profit

Front 79

IQ

Back 79

Installation Qualification

Front 80

OH

Back 80

Overhead

Front 81

OI&E

Back 81

Other income and expense

Front 82

OQ

Back 82

Operational Qualification

Front 83

PPI

Back 83

Paperless Plant Initiative

Front 84

PPP

Back 84

Positives, proofs, and plates

Front 85

PPV

Back 85

Purchase price variance

Front 86

PPV

Back 86

Purchase price variance

Front 87

PQ

Back 87

Performance Qualification

Front 88

USDC

Back 88

US distribution center

Front 89

WIP

Back 89

Work in progress