Term
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Definition
| the process of identifying, describing, and evaluating the activities an organization performs. |
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Term
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Definition
| the ability to perform activities or the number of times an activity can be performed. |
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Term
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Definition
| the process of eliminating non–value–added activities. |
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Term
| activity flexible budgeting |
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Definition
| the prediction of what activity costs will be as activity output changes. |
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Term
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Definition
| assesses the number of times the activity is performed. It is the quantifiable measure of the output. |
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Term
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Definition
| decreasing the time and resources required by an activity. |
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Term
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Definition
| the process of choosing among sets of activities caused by competing strategies. |
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Term
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Definition
| increasing the efficiency of necessary activities by using economies of scale. |
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Term
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Definition
| the cost difference of the actual activity capacity acquired and the capacity that should be used. |
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Term
| activity–based management (ABM) |
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Definition
| an advanced control system that focuses management’s attention on activities with the objective of improving the value received by the customer and the profit received by providing this value. It includes driver analysis, activity analysis, and performance evaluation and draws on activity–based costing as a major source of information. |
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Term
| activity–based responsibility accounting |
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Definition
| assigns responsibility to processes and uses both financial and nonfinancial measures of performance. |
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Term
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Definition
| uses best practices as the standard for evaluating activity performance. |
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Term
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Definition
| the relentless pursuit of improvement in the delivery of value to customers; searching for ways to increase overall efficiency by reducing waste, improving quality, and reducing costs. |
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Term
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Definition
| the effort expended to identify those factors that are the root causes of activity costs. |
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Term
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Definition
| measures expressed in dollar terms. |
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Term
| financial–based responsibility accounting system |
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Definition
| a system that assigns responsibility to organizational units and typically measures performance using only financial metrics. |
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Term
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Definition
| efforts to reduce the costs of existing products and processes. |
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Term
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Definition
| an interim standard that reflects the planned improvement for a coming period. |
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Term
| non–value–added activities |
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Definition
| activities either unnecessary or necessary but inefficient and improvable. |
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Term
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Definition
| costs that are caused either by non–value–added activities or the inefficient performance of value–added activities. |
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Term
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Definition
| installing an entirely new process to meet customer and financial objectives. |
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Term
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Definition
| incremental and constant increases in the efficiency of an existing process. |
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Term
| process innovation (business reengineering) |
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Definition
| the performance of a process in a radically new way with the objective of achieving dramatic improvements in response time, cost, quality, and other important competitive factors. |
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Term
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Definition
| an analysis that defines activity–based responsibility accounting, focuses on accountability for activities rather than costs, and emphasizes the maximization of systemwide performance instead of individual performance. |
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Term
| responsibility accounting |
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Definition
| a system that measures the results of each responsibility center and compares those results with some measure of expected or budgeted outcome. |
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Term
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Definition
| the difference between acquired capacity (practical capacity) and actual capacity. |
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Term
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Definition
| activities that are necessary to achieve corporate objectives and remain in business. |
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Term
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Definition
| costs caused by value–added activities. |
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Term
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Definition
| the optimal output level for an activity. |
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