Term
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Definition
| costs that are not easily traced so they must be allocated or assigned. |
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Term
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Definition
| any event that causes the consumption of overhead resources. |
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Term
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Definition
Costs are accumulated that relate to a single activity measure.
(Bucket) |
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Term
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Definition
(activity measure)
drive the cost being allocated; transaction or duration drivers. |
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Term
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Definition
| simple counts of number of times an activity occurs. |
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Term
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Definition
| measure the amount of time required to perform the activity |
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Term
Activity Based Management
(ABM) |
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Definition
-cost: same cost driver process as ABC
-process: how can we eliminate, reduce, or share the cost drivers |
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Term
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Definition
| Japanese continuous improvement method |
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Term
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Definition
| Actual Qty - Value add Qty = Waste |
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Term
Inventory Carrying Cost
MOIST |
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Definition
Money-Finance Charge
Obsolescence-wants change
Insurance-property insurance on inv.
Security-protection of product
Taxes-levy a personal property tax on inv.
MOIST = 15-18% |
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Term
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Definition
| report showing what costs have been assigned to a cost object |
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Term
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Definition
| an allocation base in an ACB system |
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Term
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Definition
| activities that are performed each time a batch of goods is handled regardless of batch quantity. |
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Term
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Definition
| a systematic approach to identifying the activities with the greatest potential for improvement. |
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Term
Activity Based Costing
failed implementation |
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Definition
- Costly to implement
- Management resistant to change
- infrequent modification or updating
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