Shared Flashcard Set

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Cost
FlashCards
14
Accounting
Professional
03/22/2010

Additional Accounting Flashcards

 


 

Cards

Term
Special order
Definition
represents an order that will not affect other sales and is usually a short-run occurrence.
Term
Full cost
Definition
is defined as the sum of the fixed and variable costs of manufacturing and selling a unit.
Term
Sunk costs
Definition
are costs incurred in the past that cannot be changed by present or future
decisions. Sunk costs are not differential and therefore not relevant for decision making.
Term
Differential costs
Definition
are costs that differ among alternatives. Differential costs change in
response to alternative courses of action.
Term
Differential analysis
Definition
refers to the process of estimating revenues and costs of alternative
actions available to decision makers and of comparing these estimates to the status quo.
Term
Short-run
Definition
is defined as the period of time over which capacity will be unchanged, generally one year.
Term
Product life cycle
Definition
covers the time from initial research and development to the time at which
support to the customer ends.
Term
Predatory pricing
Definition
is the practice of setting a selling price below cost with the intent to
harm competition by driving competitors out of the market or by creating a barrier to entry for new competitors.
Term
Dumping
Definition
occurs when a company exports its product to consumers in another country
at an export price below the domestic price.
Term
Price discrimination
Definition
is the practice of selling identical goods or services to different
customers at different prices.
Term
Peak-load pricing
Definition
is the practice of setting prices highest when the quantity demanded
for the product approaches the physical capacity to produce it.
Term
Price fixing
Definition
represents the agreement among business competitors to set prices at a
particular level.
Term
Make-or-buy decision
Definition
involves any decision concerning whether to make the needed goods
internally or purchase them from outside sources.
Term
Theory of constraints (TOC)
Definition
focuses on revenue and cost management when faced with
bottlenecks, defined as operations where the work required limits production.
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