Operations Management: Cost Accounting & Performance Management Flashcards
What is productivity?
Relationships derived from actual performance in comparison to similar organizations
What are total factor productivity ratios?
Quantity of all output produced relative to costs of all inputs used
What are partial productivity ratios?
Quantity of output produced relative to the quantity of individual inputs used
What are control charts?
Show whether there is a trend toward improved quality conformance or deteriorating quality conformance
What are pareto diagrams?
Determine quality-control issues that are most frequent & often demand the greatest attention
What is a cause-and-effect (fishbone) diagram?
Identify sources of problems in production process by resource & take corrective action
CRPI - types of financial scorecard responsibility segments
Cost SBU
Revenue SBU
Profit SBU
Investment SBU
What are the areas of accountability in financial scorecards?
Product lines, geographic areas, & customers
FICA - balanced scorecard
Financial
Internal business processes
Customer satisfaction
Advancement of innovation & human resource development
APIE - costs of quality
Appraisal costs
Prevention costs
Internal failure costs
External failure costs
What is residual income?
Measures excess of actual income earned by an investment over return required by the company
What are cost objects?
Resources or activities serving as basis for management decisions
What is the relevant range?
Range for which assumptions of cost driver are valid
Job-Order Costing
Identifies job as cost objective
Used when few units produced
Units are unique/easily identifiable
Cost allocated to specific job through manufacturing process
Customized production environments
Process Costing
Averages costs & applies them to a large number of homogenous items
