Term
|
Definition
| resources sacrificed on activities performed on each individual unit of product of service |
|
|
Term
|
Definition
| resources sacrificed on activities that are related to a group of units of product(s) or service(s) rather than to each individual unit of product or service |
|
|
Term
|
Definition
| "service-sustaining costs" resources sacrificed on activities undertaken to support individual products or services |
|
|
Term
|
Definition
| costs that cannot be traced to a product or service but support the organization as a whole |
|
|
Term
|
Definition
| describes the way total costs behaves, or changes, when some measure of activity changes |
|
|
Term
| What are the three linear ways to approach to analyzing mixed costs? |
|
Definition
1. Scattergraph
2. High-Low Method
3. Regression |
|
|
Term
|
Definition
| the difference between sales revenue and variable costs |
|
|
Term
| Contribution Margin Ratio |
|
Definition
| the contribution margin divided by sales revenue |
|
|
Term
|
Definition
| the point where total sales are equal to total costs |
|
|
Term
| Degree of Operating Leverage |
|
Definition
| measure the extent to fixed costs are used to operate the business |
|
|
Term
|
Definition
costs that can influence a decision
occurs in the future
differs between decision alternatives |
|
|
Term
|
Definition
costs that doesn't influence a decision
include sunk costs |
|
|
Term
|
Definition
| costs that have been incurred in the past |
|
|
Term
|
Definition
| the benefit that is given up when one alternative is selected over another |
|
|
Term
|
Definition
| a one-time order that is outside the scope of normal sales |
|
|
Term
|
Definition
limits the system's overall output and determines how much contribution margin is lost due to limited resources
the amount of contribution margin generated by the most constrained resource |
|
|
