Shared Flashcard Set

Details

MCS Reading 6.3
n/a
5
Accounting
Graduate
03/21/2011

Additional Accounting Flashcards

 


 

Cards

Term
3 approaches to distribution channel profitability
Definition
1. Standard costs
2. ABC
3. Strategic cost management
Term
1. Standard costs
Definition
Creates 2 cost pools, product costs and SGA. Product costs allocated on stadard cost units and SGA based on sales.
Term
2. ABC
Definition
Advantage: ACCURACY
Drawback: based on the assumption that ll costs are product driven.
Term
3. Strategic cost management
Definition
recognizes cost is not solely based on products, also on the customers and markets. Removes the constraint that everything has to be product-driven
Term
Developing accurate channel and customer costs (4 steps)
Definition
1. Separate costs into activity and non activity
2. Identify the cost behavior of all activity and non-activity costs (channel, product and customer).
3. Trace costs to individual products, channels and customers
4. Translate the product, channel and customer costs into a total cost view for the whole business.
3.
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