Module+17000+XI+Vocabulary

XI. Module 17000 Vocabulary jkm

10.duration drivers - A measure of the amount of time required performing an activity when this is a significant cost driver. 11.expected global consumption ratio - the percentage of total activity costs that diminishes by the creation of a product. 12.facility level activities – costs that support the company’s general manufacturing process and are usually fixed costs. 13.non-unit based drivers – factors, besides quantity of units produced, that help determine the cost of an activity 14.normal cost system - a costing system in which overhead costs are applied to jobs by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job. 15.over applied overhead - A situation in which the overhead applied to a work in process (WIP) product is less than the overhead that the WIP actually incurs 16.overhead variance – difference between fixed overhead and fixed overhead incurred 17.predetermined overhead rate - the rate used to apply manufacturing overhead to work-in-process inventory 18.product diversity – offering a wide variety of product types 19.resource drivers - keep track of how the subsequent activity level affects the resource consumption. 20.unit level activities - occur every time a service is performed or a product is made. 21.unit level drivers - are triggered for every unit that is being produced. 22.activity analysis - identification and description of activities in an organization, and evaluation of their impact on its operations. 23.activity capacity - refers to an activity's upper threshold of performance based on historical results and future expectations 24.activity reduction –narrowing down the focus of an organization’s activities 25.activity volume variance - a fixed overhead **variance** that represents the difference between budgeted fixed overhead and fixed  overhead applied to production of the period 26.activity based management - a method of identifying and evaluating activities that a business performs using activity based costing to carry out a value chain analysis or a re-engineering initiative to improve strategic and operational decisions in an organization 27.benchmarking - the process of comparing one's business processes and performance metrics to industry bests and/or best practices from other industries 28.continuous improvement – process of trying to make less costly products with less waste. 29.kaizen costing - The process of continual cost reduction that occurs after a product design has been completed and is now in production 30.non value added costs - Time and/or money spent on an activity or task that adds to the total cost, but does not enhance the customer's judgement of the value of a good or service 31.non value added activities - activity or task that adds to the total cost, but does not enhance the customer's judgement of the value of a good or service. 32.process improvement – creating a better alternative to producing a particular product 33.process value analysis - A strategy that businesses use to determine whether all of their operational expenses are necessary and if they could be operating more efficiently 34.responsibility accounting - based on the assumption that every cost incurred must be the responsibility of one person somewhere in the company 35.unused capacity variance - economic situation wherein the market will not absorb all of the maximum possible output at a price exceeding the variable cost of production. 36.value added activities – activities of tasks that enhance the customer’s judgment of the value of a product value added costs - Time and/or money spent on an activity or task that adds to the total cost, and also enhances the customer's judgement of the product.
 * 1) Activity attributes – The set of properties that are associated with a particular activity.
 * 2) activity dictionary – a listing of all the activities of an organization
 * 3) activity drivers - keep track of how cost object behavior influences activity levels, i.e., the level of activity for each activity
 * 4) activity inventory - a list of the activities that are performed within the organization.
 * 5) activity based costing system - a system that first assigns cost to activities and then traces costs from activities to products.
 * 6) applied overhead - a fixed charged to a specific production job or department within a company.
 * 7) batch level activities - production costs that are incurred only when a new batch is processed. These costs might include things like set-up time, moving materials and loading machines. For these costs, it does not matter how many units are produced in the batch.
 * 8) bill of activities - A catalog of all activities that must be completed to create a finished product
 * 9) consumption ratio – the percentage of each activity that diminishes by the creation of a product.