Text Final Flashcards
Using cash to fund future revenue or operations
Investment Center
Return on investment
Sales margin
Capital turnover
Residual income
Investment Center
Directly involved with achieving the basic objectives of the organizations
Line positions
Indirectly involved and support the line functions
Staff positions
Summary performance that allow managers to assess how well the company’s objectives are being met
Key performance indicators
The time taken in processing a product or service that is justifiable to the customer as a cost
Value added time
Time spent while processing a product or service that is perceived as not being valid cost
Non valid added time
Time spent working on an order beginning and ending with the delivery of the product
Delivery cycle time
Time spent making the product beginning with when production begins until the product is shipped to the customer
Throughput time
Non-value added time that begins when the order is take and ends when production begins
Wait time
Value added fine that involves the actual time spent working on the product
Process time
Non value added time that is the time a product waits to be worked on
Queue time
Non value added some that is attributed to the time spent transporting the product
More time
Non value added time that is spent testing /reviewing the product to ensure quality
Inspection time
Percentage of throughput time spent on value added activities
Manufacturing cycle efficiency
Cost that is in the future and differs between alternative actions
Relevant information
Financial
Non financial
Relevant information
Potential benefits foregone by choosing one alternative over another
Opportunity cost
Any cost that has been previously incurred and cannot be changed by a future decision
Sunk cost
The difference between the revenues/costs between two alternatives
Differential revenue/costs
The additional cost of selecting one alternative over another
Incremental cost
Heavy competition
Standard product
Use target costing
Price taker
Low competition
Unique product
Use post plus pricing
Price setter
