Exam 1 Review Flashcards
Chapters 1-3, 13
value chain
chain of cirtical business processes that create business value
primary activities
inbound logistics, operations, outbound logistics, marketing/sales, service
support activities
procurement, info technology, human resources, infrastructure
inbound logistics
receiving/storing raw materials or partially completed materials
operations
activites that transform input to finished g/s
outbound logisitcs
warehouse and distribute finished goods to customers
marketing/sales activities
identify needs/wants of customers to attract to g/s
service activities
support customers after g/s sold to them
procurement
purchasing inputs (raw materials, supplies, equipment)
info technology
technologies to support value-creating activities
human resources
recruiting, hiring, training, and compensating employees
infrastructure
needed to support primary activities of company (CEO, finance/accounting dept., legal dept.)
cost advantage
strategy that offers g/s to customer a price lower than competitors’
economic scale
cost advantage experienced by firm when output is increased
product differentiation
strategy in which company seeks to offer g/s that are distinct compared to competitors
financial accounting
information for external users, follows standards, perform audit, mandatory reporting, financial reporting system
management accounting
information for internal users, follows no set standards, no audit, not mandatory reporting, variety of info systems used
management accountant
analyzes accounting-related data to help make effective business decisions
data scientist
acquire, maintain, curate, access, manipulate, and statistically test data to address business questions
data analysis software
Microsoft excel, power bi, tableau desktop
cost object
anything for which a measurement of cost is needed
direct cost
easily identified to belong to a specific cost object
indirect costs
not easily identified to belong to a specific cost object
manufacturing overhead
cost incurred manufacturing goods
cost allocation
estimate amount of indirect cost to assign to specific cost objects
cost accumulation
collection of cost data in accounting system
cost assignment
process of tracing direct cost and allocating indirect cost
variable costs
change based on number of units produced
fixed cost
do not change based on number of units produced
mixed cost
include both fixed and variable components
prime cost
direct materials and direct labor
conversion cost
direct labor and manufacturing overhead
period cost
expenses not included in product cost
product cost
all cost incurred to produce g/s to customer
inventoriable cost
product cost
cost of goods sold
inventory that is sold
relational databases
data is stored in seperate tables but can function together through relating one table to another
attributes
characteristics of different entities; column of database
records
row of database
data type
possible set of values that each attribute can possess
primary key
field that functions as a unique identifier for the record
foreign key
common field between tables
high-low method
uses highest and lowest volume points to approximate cost equation
regression
statistical method used to estimate relationship between outcome variables and predictor variables
cvp analysis
recognizes decisions about product pricing, production levels, production cost, and profitability goals
differential analysis
prescriptive analytics technique to determine change in profit
relevant cost
expected future costs that differ among courses of action
relevant revenue
expected future revenues that differ among courses of action
sunk cost
past costs spent that cannot be recovered regardless of future action
price elasticity of demand
measure of change in consumption of a product in relation to change in price
break-even point in units
fixed cost/contribution margin per unit
target profit in units
(fixed costs + target profit)/contribution margin per unit
margin of safety in units
(sales units - break even units)/sales units
