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| Costs incurred prior to the split-off point; common (i.e., indirect) costs |
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| A process that yields multiple outputs from a common resource input |
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| A mathematical technique that can be used to solve constrained optimization problems, such as the optimum short-term product (or service) mix |
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| The benefit lost when choosing one option precludes receiving the benefits from an alternative option |
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| Exists when a company has set prices below average variable cost and plans to raise prices later to recover the losses from the lower prices |
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| A future cost that differs between and among decision alternatives; an avoidable cost |
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| separable processing costs |
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| In a joint production process, costs incurred after the split-off point, traceable to individual products |
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| An analytical tool available on the Data Tab in Excel that can be used to solve linear programming (i.e., constrained optimization) problems |
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| The point in a joint production process where products with individual identities emerge |
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| Costs that have been incurred in the past or committed for the future and are therefore irrelevant for decision-making purposes |
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| A group of related products; useful for preparing profitability reports as part of lean accounting; all the activities required to create customer value for a family of products or services |
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