Chapter 1:
Chief financial officer (CFO): The person in an organization who overes all accounting and finance functions
Chief internal auditor (CIA): The person in an organization who overes the internal audit function.
Controller: The person in an organization who manages the day-to-day accounting and issues guidance concerning corporate accounting policies.
Treasurer: The person in an organiztion who manages cash flows and rves as the contact point for banks, bondholders, and other creditors.
Opportunity cost: The value of the next-best option
Chapter 2:
Batch-level cost: A cost that varies in proportion to the number of batches of units made (ud synonymousl with step cost)
Facility-level cost: Cost that does not vary at the unit-, batch-, or product-level. Cost required to sustain the organization.
Fixed cost: A cost that does not change as the volume of activity changes
Mixed cost: A cost that contains both fixed and variable components.
Overhead: The costs of capacity resources
Product-level cost: A cost that varies in proportion to the number of prodcuts.
Step cost: A cost that inreas in discrete steps as the volume of activity increas.
Sunk cost: A past expenditure that cannot be changed
Traceability: The degree to which we can directly relate a cost or a revenue to a decision option.
Unit-level Cost: A cost that increas or decrea in direct proportion to the number of units produced( ud synonymously with variable cost).
variable cost: A cost that is proportional to the volume of activity.
Chapter 3
蛋炒河粉Allocation rate: The cost pool divided by the allocation volume.
Allocation volume: The sum of the cost driver amounts across all cost objects
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Capacity costs: The sum of variable and fixed overhead costs.
Conversion costs: The sum of direct labor and manufacturing overhead costs
Cost driver: Attributes that we can measure for each cost object that are ud to distribute the cost pool among cost object.
Cost object: The items, or entities, to which costs are to be allocated.
Cost pool: The total costs to be allocated
Gross margin: Revenue less product costs
Inventoriable cost (Product cost): A financial accounting concept under GAAP. Any cost associated with getting products and rvices ready for sales.
Prime cost: The sum of direct materials and direct labor costs, as the are the primary inputs into the production process.
Chapter 4
Cost structure: The proportion of the total costs that are variable and fixed.
Relevant range: A firm's normal reange of operations. Over this range, we expect a stable relation between activity and cost.
Segment margin: The contribution margin of a gment( e.g., product, customer, geographical region) less traceable fixed costs.
Chapter 5
Contribution margin ratio: The unit contribution margin divided by the unit price. The contribution margin ratio reprents the protion o
f each sales dollar that, after coverin variable costs, goes toward covering fixed costs and, ultimately, profit.
Product mix: The proportion, expresd in units, in which products are expected to be sold.
Chapter 6
Avoidable fixed costs: Costs that need not be incurred if an option is not chon. Same as controllable fixed costs.
Excess or idle capacity: A condition that obtains when avaiable capacity exceeds realized demand
Incremental (differential) approach: An approach for framing and solving decisions that involves expressing the benefits and costs of the various decision options relative to one of the options.
Joint cost: A cost that is common to two or more products. Costs of a joint process
Joint product: Products that are produced in a joint process, it is not possible to produce one joint product without producing the others as well.又啥又啥
Relevant cost analysis: The same as Incremental approach.
Split-off point: Step in a joint process after which we can identify and process the joint products parately
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Totals or gross approach: An approach that includes non-controllable costs and benefits to construct a contribution margin statement for each decision option.
Chapter 7
Cost center: Organizational unit that has control over and is accountable for costs incurred in offering products or rvices.
Investment center: Organizational tting where decision-making authority is disperd through-out the firm
Master budget: Comprehensive t of operating and financial budgets.
Profit center: Organizational unit that has control over and is accountable for both revenues and costs.
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Responsibility accounting: Set of concepts pertaining to decision rights and performance evaluation in decentralized organizations.
Chapter 8
Process control chart: Help emolyee track performance on a real-time bais.
Critical success factors: Things that must "go right" for the organization to be successful.
Benchmark: Systematic evalution of various activities and business process relative to the best practices.
Chapter 9
Direct estimation: Capacity costs involves systematically examining each cost account to evaluate whether ( and how much) a decision would change a capacity cost.
Plantwide rate: The u of one rate for the entire company when allocating capacity cost (overhead) to products.
Departmental rates: The u of many rates, usually one per department, for allocating capacity (overhead) costs to products.
购买手机Full costing: Term frequently ud to refer to "absorption costing"
Profit margin: Contribution margin less allocated capacity costs.
Chapter 10
Cross-subsidiztion: Some cost allocation systems allocate systematically lower amounts to some products and higher amounts to allocate other products. In such instances, products receiving higher allocations are side to cross-subsidize products receiving lower allocations.
Practical capacity: A realistic estimat
e of the maximum possible activity level.
Whale curve: A curve that plots customer profitability after ranking customers in order of their profitability. Has the appearance of a "whale"
Chapter 11
Annuity: A stream of cash flow with the property that the cash flows per period.
Cost of capital: The opportunity cost of money in the form of returns from alternate investments.
Discount rate: The rate of return employee to compute the prent value of future cash flows.
Hurdle rate: Minimum required rate of return chon by management. Oftern exceeds that cost of capital
Modified payback period: The length of time it takes to recoup the initial investment using discounted cash flows.
Prent value: The value today of a future cash flow
Salvage value: The final one-time costs or benefits associated with disposing of a resource.
Chapter 12
Controllable performance measure: A performance measure that reflects only the conquences of the actions taken by the decision maker.
Informativenss principle: The notion that any metric that provides information about a manager's effort or skill could be a uful performance measure
Benchmarking: Systematic evaluation of various activities and business process relative to the best practices.
Engineered cost center: Cost centers for which there is a clear relation between inputs and outputs
Discretionary cost center: A cost center for which there is no clear relation between inputs and outputs
Profit margin: Contribution margin less allocated capacity costs/ Contribution margin less the controllable cost of capacity resources.
Ast turnover: It increas by increasing revenue withe the same level of asts or by decreasing the level of investment required for the same levle of revenue.
Chapter 13
Value proposition: The key source of customer value provided by an organization
Core competency: Skill t and experti that characterize a firm and its employees.
Cost gap: The difference between the current cost and the allowable cost
Lagging measures: Measures that reflect past performance
Leading measures: Measures that capture the drivers of future performance
Chapter 14
Normal costing: A product-costing system that us predetermined overhead rates to apply overhead to products.
Chapter 16
Reciprocity in consumption: A consumption pattern in which two departments provide rvices to each other
Step-down method: An allocation procedure that partially accounts for the relationship among support activities.
Sequential method: Same as Step-down method
Reciprocal method: An allocation procedure that fully accounts for the relationship among support activities.
Quality Costs (Additonal reading) 找的我都要崩溃了。。。
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Prevention costs: Prevention costs are one of the four elements of cost of quality, Costs of prevention focus on the actions taken to prevent the creation of defects.
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Appraisal costs: A specific category of quality control costs. Companies pay appraisal costs as part of the quality control process to ensure that their products and rvices meet customer expectations and regulatory requirements. The costs could include expens for field tests and inspections.
Control costs: A cost that a decision maker choos to incur, realative to doing nothing.
Costs of conformance: COC compris the costs of ensuring that a product or rvice conforms to or exceeds specified standards of quality.
Internal failure costs: costs of deficiencies discovered before delivery which are associated with the failure.
External failure costs: associated with deficiencies that are found after product.
Obrvable costs: 真心不知道。。。
Hidden costs:expen not normally included in the purcha price of an equipment ormachine, such as for maintenance, suppliers, training and upgrades.
Statistical quality control: Application of statistical methods and procedures (such as control charts) to analyze the inherent variability of a process or its outputs to achieve and maintain a state of statistical control, and to improve the process capability. Also called statistical process control.
Total quality management: Application of quality management principles to all areas of business from design to delivery instead of confining them only to production activities.
