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Flashcards in Others Deck (12)
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RESOURCE

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Any consumable, except time, required to accomplish an activity. From a total cost and asset management perspective, resources may include any real or potential investment in strategic assets including time, monetary, human, and physical. A resource becomes a cost when it is invested or consumed in an activity or project.

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COST

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 In project control and accounting, it is the amount measured in money, cash expended or liability incurred, in consideration of goods and/or services received.

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Life-Cycle Costs (LCC)

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Cost that are associated with an asset, and they extend the cost management information beyond the acquisition, (creation) of the asset to the use and disposal of the asset

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OPPORTUNITY COSTS –

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 The value of a lost opportunity of an alternative that is not selected

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Cost Classifications methods

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COSTING, ACTIVITY BASED (ABC) – Costing in a way that the costs budgeted to an account truly represent all the resources consumed by the activity or item represented in the account. In the ABC approach, resources that are used are assigned to activities that are required to accomplish a cost objective

 

A code of accounts (sometimes referred to as a chart of accounts or as cost code of accounts) is a systematic numeric method of classifying various categories of costs incurred in the progress of a job

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ACCRUAL –

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 In earned value management, the actual costs that are recorded for goods and/or material received or services rendered before payment.

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BULK MATERIAL –

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Material bought in lots.

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CRUDE MATERIALS –

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Includes products entering the market for the first time which have not been fabricated or manufactured but will be processed before becoming finished goods

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DEMURRAGE –

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A charge made on cars, vehicles, or vessels held by or for consignor or consignee for loading or unloading, for forwarding directions or for any other purpose.

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Materials types:

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Raw

Bulk

Fabricated

Engineered or designed

Consumables

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What influence the Purchase costs of materials

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Market pricing (pre-negotiated vs. competitively bid, etc.)

Order quantity

Taxes and duties

Carrying charges

Cancellation charges

Demurrage

Hazardous material regulations

Warranties, maintenance and service

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What influence the cost of Materials management costs:

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Delivery schedule

Packing

Shipping and freight

Freight forwarding

Handling

Storage and inventory

Agent cost

Surveillance or inspection

Expediting

Losses (shrinkage, waste, theft, damage)

Spare parts (inventory or start-up)

Surplus material