Cost Accounting Ch 1

Costing method that first assigns costs to activities and then assigns them to products based on the products' consumption of activities
Activity-Based Costing (ABC)
Continuous process of measuring a company's own product, service, or activities against competitors' performance
Benchmarking
Financial plan of the resources need to carry out activities and meet financial goals
Budget
Field of accounting that measures, records, and reports information about costs
Cost Accounting
Process of comparing benefits with costs associated with a proposed change within the organization
Cost-Benefit Analysis
Factor that causes costs
Cost Driver
System that identifies the costs of producing low-quality items, including rework, returns, and lost sales
Cost of Quality (COQ)
System that allows firms to target profitable customers by assessing customer revenues and costs
Customer Relationship Management (CRM)
With two or more alternatives, costs that differ among or between alternatives
Differential Costs
Revenues that change in response to a particular course of action
Differential Revenues
Set of firms and individuals that busy and distributes goods and services from the firm
Distribution Chain
Information technology that links the various systems of the enterprise into a single comprehensive information system
Enterprise Resource Planning (ERP)
Field of accounting that reports financial position and income according to accounting rules
Financial Accounting
Rules, standards, and conventions that guide the preparations of financial accounting statement for shareholders
GAAP
Rules, standards and conventions that guide the preparation of the financial accounting statements in many other countries
IFRS
In production or purchasing, each unit is purchased or produced just in time for its use
Just-in-Time (JIT) Method