b1-b6 Flashcards
what is responsibility accounting
performance reports and determining what management can do within their control
who can control service departmet costs?
not in anyone’s control because they are based on activity drivers
what is kazien manufacturing?
continuous improvrmrnt that fouces on resource use staying in budget
what is the relevant range?
range in which fixed and variable cost relationships have meaning
goalpost conformance
range of acceptable results
what are conforming costs?
preventitive and appraisal costs invested to prevent and detect errors
nonconforming costs
internal/external failures used to detect errors
what are value added costs?
costs that provide value to the customer
what is a nonvalueadded cost that should be reduced because we have control over it?
storing and moving inventory
what is a validity check?
example is checking an item against the master file/key
what is ROI?
income earned/cost of invested capital
what could increase ROI?
increase in price, assuming demand stays same
decrease in expenses
decrease in invested capital
what industries are standard cost systems used?
mass production and service industries
define dynamic programming
makes a series of unrelated decisions
how can regression seperate fixed costs between variable costs
by use of a trendline through least squares
what is public key infrastructure?
it manages asymmetrical keys and digital certificates
*note it does not generate crertificates, only manages them
what is a digital signature?
creates a legally binding document
what assigns ip adresses?
a router
how do you calculate real and nominal values with inflation?
real-divide to get rid of inflated value
nominal-multiply to get value with inflation rate 1.02
How is TPR different from PPR?
total productivity ratios consider all inputs with the prices at the same time. Partial productivity ratios do not consider price an donly consider a single input
what is a pareto diagram
an individual and cumulative analysis of error by type.
what comes first: event identification or developing objectives?
develoment of objectives occurs first so that the events identified can be analyzed to line up with our objectives
what would go into a quality report?
warranty claims-external
design engineering-preventitive cost
supplier evaluations-prevention costs
what is the exception for issuers making personal business loans?
allowed if they are part of ordinary business
