XI.+Module+11000+Vocabulary+JRH

__Activity Resource Usage Model__ - Concentrates on how to use resources with two options: First, flexible resources (acquired when used and needed) and second is committed resources (acquired in advance of use).

__Decision Model__ - A set of processes that if followed will lead to a decision.

__Foreign Trade Zone (FTZ)__ - Areas that are on U.S. soil yet not systematically in the U.S. commerce system for tariff purposes, etc.

__Keep-or-Drop Decision__ - Using relevant cost information and analysis the controller can determine if a product offering, etc should be kept or dropped by the business.

__Make-or-Buy Decision__ - A decision whether to make or buy parts or services in making a product or service.

__Outsourcing__ - Moving some or all of a business process or offering to another company to fully service the customer. For instance, textile manufaturers may grow cotton in the U.S., but export cotton to a plant in Mexico to complete the final product. This is exporting the service of manufacturing the final product.

__Relevant Costs (and Revenues)__ - Costs (Revenues) not yet realized that are different across alternatives. //Irrelevant costs/revenues are future costs that are the same across alternatives and therefore have no influence on the decision at hand.//

__Sell or Process Further__ - A decision whether to continue processing a product or service further in order to sell it at a greater gain, as opposed to selling at its current state. For example, a company making nails may have a decision to sell plain roofing nails, or continue production and coat the nails with anti-rust chemicals. Continuing production raises cost and net gain for each nail sold. The alternative is to sell the nails prior to coating.

__Special-Order Decisions__ - A decision of whether to accept or reject a specially priced order. These decisions are typically short-term decisions focused on increasing short-term profits without disrupting normal business focuses.

__Sunk Cost__ - Costs that will not or cannot be influenced by a decision. For instance, in deciding whether or not to manufacture a new part in an existing facility the cost of the building rent is a known sunk cost and has no cost influence on the decision.

__Tactical Cost Analysis__ - Using relevant cost information to narrow down the alternatives and choose the best decision with the greatest benefit to the organization.

__Tactical Decision Making__ - For cost accounting purposes it consists of selecting between alternatives with a short-term end in sight. For example, decisions like accepting special orders, make or buy, sell or hold, etc.

//Steps in Tactical Decision-Making Process://

//1. Define the problem.// //2. Define the alternatives and remove impractical solutions.// //3. List the costs and benefits for each of the alternatives. Again, remove impractical solutions based on the cost/benefit analysis.// //4. Balance the relevant costs and benefits for the remaining alternatives.// //5. Evaluate the qualitative components of the decision.// //6. Choose the best alternative with the greatest benefit to the organization.//

__Tariff__ - Tax or fee assigned by the government.