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Flashcards in Chapter 1 Deck (25):
1

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

Activity-Based Costing (ABC)

2

Continuous process of measuring a company's own product, service, or activities against competitors' performance

Benchmarking

3

Financial plan of the resources need to carry out activities and meet financial goals

Budget

4

Field of accounting that measures, records, and reports information about costs

Cost Accounting

5

Process of comparing benefits with costs associated with a proposed change within the organization

Cost-Benefit Analysis

6

Factor that causes costs

Cost Driver

7

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

Cost of Quality (COQ)

8

System that allows firms to target profitable customers by assessing customer revenues and costs

Customer Relationship Management (CRM)

9

With two or more alternatives, costs that differ among or between alternatives

Differential Costs

10

Revenues that change in response to a particular course of action

Differential Revenues

11

Set of firms and individuals that busy and distributes goods and services from the firm

Distribution Chain

12

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

Enterprise Resource Planning (ERP)

13

Field of accounting that reports financial position and income according to accounting rules

Financial Accounting

14

Rules, standards, and conventions that guide the preparations of financial accounting statement for shareholders

GAAP

15

Rules, standards and conventions that guide the preparation of the financial accounting statements in many other countries

IFRS

16

In production or purchasing, each unit is purchased or produced just in time for its use

Just-in-Time (JIT) Method

17

A cost accounting system that provides measures at the work cell or process level; designed around the value chains of major products and services to support lean manufacturing

Lean Accounting

18

Activities that do no add value to the good or service

Nonvalue-Added Activities

19

Having one or more of the firm's activities performed by another firm or individual in the supply or distribution chain

Outsourcing

20

Performance measurement system relying on multiple financial and nonfinancial measures of performance

Balanced Scorecard

21

Specific unit of an organization assigned to a manager who is held accountable for its operations and resources

Responsibility Center

22

Linked set of firms that exchange goods and services in combination to provide a final product or service to the consumer

Supply Chain

23

Management method where the organization seeks to excel on all dimensions, with the customer ultimately defining quality

Total Quality Management (TQM)

24

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

Value-Added Activities

25

Linked set of activities that increase the usefulness (or value) of the goods or services of an organization

Value Chain