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19 Cards in this Set
- Front
- Back
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Relevant Information
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The predicted future costs and revenues that will differ among alternative courses of action
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Decision Model
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Any method for making a choice, sometimes requiring elaborate quantitative procedures
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Avoidable Costs
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Costs that will not continue if an ongoing operaion is changed or deleted
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Unavoidable Costs
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Costs that continue even if a company discontinues an operation
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Common Costs
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These costs of facilities and services that are shared by users
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Limiting Factor (Scarce Resource)
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The item that restricts or constrains the production or sale of a product or service
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Inventory Turnover
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The number of times the average inventory is sold per year
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Perfect Competition
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A market in which a firm can sell as much of a product as it can produce, all at a single market price
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Marginal Cost
(aka Variable Cost) |
The additional cost resulting from producing and selling one additional unit
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Marginal Revenue
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The additional revenue resulting from the sale of an additional unity
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Imperfect Competition
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A market in which the price a firm charges for a unit will influence the quantity of units it sells
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Price Elasticity
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The effect of price changes on sales volume
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Predatory Pricing
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Establishing prices so low that they drive competitors out of the market. The predatory pricer then has no significant competition and can raise prices cramatically
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Discriminatory Pricing
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Charging different prices to different customers for the same product or service
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Markup
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The amount by which price exceeds cost
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Full Cost (Fully Allocate Cost)
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The total of all manufacturing costs pluse the total of all selling and administrative costs
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Target Costing
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A cost management tool for making cost reduction a key focus throughout the life of a product; based on desired cost
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Value Engineering
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A cost-reduction technique, used primarily during design, that uses informaiton about all value chain functions to satisfy customer needs while reducing costs
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Kaizen Costing
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The Japanese term for continuous improvement during manufacturing
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