Operation where the work required limits production
Bottleneck
Activities, resources, or policies that limit or bound the attainment of an objective
Constraints
Contribution margin per unit of a particular input with limited availability
Contribution Margin per unit of Scarce Resource
Process of estimating revenues and costs if alternative actions available to decision makers and of comparing these estimates to the status quo
Differential Analysis
With two or more alternatives, costs that differ among or between alternatives
Differential Costs
Exporting a product to another company at a price below domestic price
Dumping
Sum of all costs of manufacturing and selling a unit or product (includes bother fixed and variable costs)
Full Cost
Decision concerning whether to make needed goods internally or purchase them from outside sources
Make-or-Buy Decision
Practice of setting prices highest when the quantity demanded for the product approached capacity
Peak-Loading Pricing
Practice of setting price below cost with the intent to drive competitors out of business
Predatory Pricing
Practice of selling identical goods to different customers at different prices
Price Discrimination
Agreement among business competitors to set prices at a particular level
Price Fixing
Time from initial research and development to the time that support to the customer ends
Product Life Cycle
Period of time over which capacity will be unchanged, usually one year
Short Run
Order that will not affect other sales and is usually a short-run occurence
Special Order
Cost incurred in the past that cannot be changed try present or future decisions
Sunk Cost
