Midterm Study Flashcards
What is a differential cost?
One that varies between two options
Where does ethical behaviour ultimately come from?
People’s values and beliefs
What is ABC costing?
Activity based: Costs to activities then allocate those activities to products
What does JIT focus on?
Reducing inventories
What are cost of quality systems?
Ones that ID costs associated with defective items
What is the balanced scorecard?
Set of fin and non-fin targets to see if the org has achieved its stakeholder goals
What are the four views of the balanced scorecard?
Financial, customer, processes, learning and growth
What is dysfunctional decision making?
Local managers making a decision which conflicts with the goals of the organization
What is an operating unit responsible for revenues and costs?
Profit center
How to calculate residual income? Benefit of using it over other measures?
Difference between divisional income and cost of invested capital.
Better goal congruence
What is peak-load pricing?
Setting prices highest when capacity is approached
What is the 3C strategy?
Concise statement of
Competitive advantage with a
Clearly defined scope
