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42 Cards in this Set
- Front
- Back
1. Continuous improvement
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concepts requiring every manager and employee continually to look to improve operations.
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2. Control
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process of monitoring planning decision and evaluating the organizations activities and employees.
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3. Controllable or not controllable cost (controllable)
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costs that a manager has the power to control or at least strongly influence. (noncontrollable)-
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4. Conversion costs
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expenditures incurred in converting raw materials to finished goods; includes direct labor costs and overhead costs.
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5. Cost object
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product, process, department, or customer to which costs are assigned.
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6. Customer orientation
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company position that its managers and employees be in tune with the changing wants and needs of consumers.
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7. Cycle efficiency (CE)
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a measure of product efficiency, which is defined as value added (process) time divided by total cycle time.
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8. Cycle time (CT)
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a measure of the time to produce a product or service which is the sumer of process time, inspection time, move time, and wait time, also called throughput time.
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9. Direct costs
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costs incurred for the benefit of one specific cost object.
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10. Direct labor
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efforts of employees who physically convert materials to finished product.
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11. Direct labor costs
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wages and salaries for direct labor that are separately and readily traced through the production process to finishd goods.
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12. Direct material
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raw material that physically becomes part of the product and is clearly identified with specific pro ducts or batches of product.
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13. Direct material costs
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expenditures for direct material that are separately and readily traced through the production process to finished goods.
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14. Ethics
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codes of conduct by which actions are judged as right or wrong, fair or unfair, honest or dishonest.
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15. Factory overhead
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factory activites supporting the production process that are not direct material or direct labor; also called overhead and manufacturing overhead.
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16. Factory overhead costs
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expenditures for factory overhead that cannot be separately or readily traced to finished goods; also called overhead costs.
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17. Finished goods inventory
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account that controls the finished goods files, which acts as a subsidiary ledger ( of the inventory account) in which the costs of finished goods that are ready for sale are recorded.
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18. Fixed cost
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cost that does not change with changes in the volume of activity.
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19. Goods in process inventory
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account in wich costs are accumulated for products that are in the process of being produced but are not yet complete, aslo called work in process inventory.
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20. Indirect costs
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costs incurred for the benefit of more than one cost object.
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21. Indirect labor
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efforts of production employees who do not work specifically on converting direct materials into finished products and who are not clearly identified with specific units or batches of product.
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22. Indirect labor costs
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labor costs that cannot be physically traced to production of a product or service, included as part of overhead.
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23. Indirect material
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material used to support the production process but not clearly identified with products or batches of product.
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24. Institute of management accountants (IMA)
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a professional association of management accountants.
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25. Internal control system
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all policies and procedures used to protect assets, ensure reliable accounting, promote efficient operations, and urge adherence to company policies.
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26. Just in time (JIT) manufacturing
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process of acquiring or producing inventory only when needed.
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27. Lean business model
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practice of eliminating waste while meeting customer needs and yielding positive company returns.
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28. Managerial accounting
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area of accounting aimed mainly at serving the decision making needs of internal users; also called management accounting.
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29. Manufacturing statement
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report that summarized the types and amounts of costs incurred in a company’s production process for a period; also called cost of goods manufacturing statement.
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30. Non value added time
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the portion of cycle time that is not directed at producting a product or service; equals the sum of inspection time, move time, and wait time.
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31. Opportunity cost
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potential benefit lost by choosing a specific action from two or more alternatives.
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32. Out of pocket cost
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cost incurred or avoided as a result of management’s decision.
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33. Period costs
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expenditures identified more with a time period than with finished products costs; includes selling and general administrative expenses.
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34. Planning
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process of setting goals and preparing to achiveve them.
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35. Prime costs
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expenditures directly identified with the production of finished goods; include direct materials costs and direct labor costs.
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36. Product costs
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costs that are capitalized as inventory because they produce benefits expected to have future value; include direct materials, direct labor, and overhead.
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37. Raw materials inventory
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goods a company acquires to use in making products.
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38. Sunk cost
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cost already incurred and cannot be avoided or changed.
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39. Total quality management (TQM)
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concept calling for all managers and employees at all stages of operations to strive toward higher standards and reduce number of defects.
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40. Value added time
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the portion of cycle time that is directed at producing a product or service; equals process time.
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41. Value chain
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sequential activites that add value to an entity’s products or services, includes design, production, marketing, distribution, and service.
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42. Variable cost
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cost that changes in proportion to changes in the activity output volume.
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