Session 1 and 2 Flashcards
Define ‘lean production’/just in time
a management approach where a business produces units only in response to customer orders
enterprise risk management
a process used by a company to proactively identify and manage foreseeable risks
Define corporate social responsibility
considering the needs of all stakeholders when making decisions
define cognitive bias
a distorted thought process that can adversely affect planning and decision making
3 categories of manufacturing costs
Direct materials Direct labour manufacturing overhead
Define direct materials
materials that can be physically traced to a product
define direct labour
labour costs that can b easily traced to individual units of a product
define manufacturing overhead
all costs of manufacturing that are not direct materials or direct labour
administrative costs
costs associated with the general management of an organization
product costs
all costs involved in acquiring or making a product (iventoriable or manufacturing costs)
period costs
all costs not included in product costs.
2 types of period costs
marketing costs, admin costs
relevant range
the range in which fixed and variable cost assumptions are valid
cost object
any unit of analysis for which cost data is desired
direct cost
can be easily traced to a cost object
Describe a schedule of CGM
Cost structure
portionn of fixed, variable, and mixed costs found at a organizaion
true variable costs
varies in driect proporion to the level of production activity
step-variable cost
a cost that is obtainable only in large amounts and increases and decreases only in responce to large changes in activity
