100 Costs term
1. Absorption costing is a costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - as part of the cost of a finished unit of product. 2. Administrative costs are all executive, organizational, and clerical costs associated with the general management of an organization rather than with manufacturing, marketing, or selling. 3. Allocation base is a measure of activity such as direct labor-hours or machine-hours that is used to assign costs to cost objects. 4. Account analysis is a method for analyzing cost behavior in which each account under consideration is classified as either variable or fixed based on the analyst's prior knowledge of how the cost in the account behaves. 5. The amount of net cash outflow resulting from a tax-deductible cash expense after income tax effects have been considered. The amount is determined by multiplying the tax-deductible cash expense by (1 - Tax rate). 6. Activity base is a measure of whatever causes the incurrence of a variable cost. For example, the total cost of X-ray film in a hospital will increase as the number of X rays taken increases. Therefore, the number of X rays is an activity base for explaining the total cost of X-ray film. 7. Adjusted r2 is a measure of goodness of fit in least-squares regression analysis. It is the percentage of the variation in the dependent variable that is explained by variation in the independent variable. 8. After tax benefit- The amount of net cash inflow realized from a taxable cash receipt after income tax effects have been considered. The amount is determined by multiplying the taxable cash receipt by (1 - Tax rate). 9. Avoidable cost -Any cost that can be eliminated (in whole or in part) by choosing one alternative over another in a decision-making situation. In managerial accounting, this term is synonymous with Relevant cost and differential cost. 10. Action Analysis Report - A report showing what costs have been assigned to a cost object, such as a product or customer, and how difficult it would be to adjust the cost if there is a change in activity. 11. Activity-based costing (ABC)- A costing method based on activities that is designed to provide managers with cost information for strategic and other decisions that potentially affect capacity and thereforefixed costs. 12. Activity based management is a management approach that focuses on managing activities as a way of eliminating waste and reducing delays and defects. 13. Activity cost pool- A "bucket" in which costs are accumulated that relate to a single activity in the activity-based costing system. 14. Appraisal cost - Costs that are incurred to identify defective products before the products are shipped to customers. 15. Benchmarking is the study of organizations that are among the best in the world at performing a particular task. The idea is to study and analyze the reasons of the success of the most successful organizations in a particular field all over the world and then to set a benchmark to follow them. Next to take steps to meet or exceed the benchmark already set. The final step is to check weather benchmark has been achieved or not. If not, find the reason and try to correct. 16. Bill of materials is a document that shows the type and quantity of each major item of materials required to make a product. 17. Business process is a series of steps that are followed in order to carry out some task in a business. 18. Break even point is defined as the level of sales at which profit is zero. The break-even point can also be defined as the point where total sales equals total expenses or as the point where total contribution margin equals total fixed expenses. 19. Bottleneck- A machine or process that limits total output because it is operating at capacity. 20. A measure of the difference between the actual fixed overhead costs incurred...
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