activity-based costing(ABC) A costing system for situations where overhead is high and/or a variety of products are produced; costs are traced to activities and then activities are allocated to production
Business to Business(B2B) A system that enables data interchange between companies; sometimes sufficiently robust to permit automatic inventory replenishment, etc.
budgetA planning tool that outlines the financial plans for an organization; there are various types of budgets -- operating, capital, and financial
Certified Financial Manager(CFM) a professional designation of competency in the field of financial management that is issued by the Institute of Management Accountants
Chartered Global Management Accountant(CGMA) sponsors a designation that distinguishes professionals who have advanced proficiency in finance, operations, strategy and management
Certified Management Accountant(CMA) a professional designation of competency in the field of management accounting that is issued by the Institute of Management Accountants
controllerThe primary person responsible for the cost and managerial accounting functions
conversion costCost components needed to change raw materials to finished goods, specifically direct labor and manufacturing overhead
cost accountingThe process by which an organization's cost is collected, assigned, and interpreted
cost of goods manufacturedThe amount of cost attributable to goods reaching the end of production; beginning work in process (wip) + (direct materials, direct labor, manufacturing overhead) - ending wip
direct laborGross wages paid to those who physically and directly work on the goods being produced
direct materialThe costs of all materials that are an integral part of a finished product and that have a physical presence that is readily traced to that finished product
Enterprise Resource Packages(ERP) Comprehensive database software that tracks an almost endless array of business and accounting data
finished goodsFinished goods represent the cost of completed products awaiting sale to a customer
job costing methodA costing approach whereby actual labor and material is tracked for each job or product
Machine to Machine(M2M) enables connected devices to communicate with each other
manufacturing overheadAll costs of manufacturing other than direct materials and direct labor (also called factory overhead)
period costA cost not attributable to the acquisition or manufacture of inventory; expensed as incurred
prime costProduct costs that are direct in nature; direct materials and direct labor
process costing methodsA product costing method particularly well suited to situations where production occurs in a continuous process; costs are pooled and assigned to aggregate output
product costCosts that attach to a product; the summation of direct materials, direct labor, and factory overhead
raw materialsThe components that will be used in manufacturing units that are not yet started -- also known as direct materials
radio frequency identification(RFID) Micro processes embedded in inventory that emit radio frequency signals that enable a computer to automatically track inventory
scorecards (balanced)A system for evaluating elements that are important to the organization and under the control of an employee holding that position
SG&ASelling, general, and administrative costs; the period costs of the business
standardsBenchmarks against which actual productive activity is compared
sustainabilityDevelopment without depletion of natural resources or negative effects on the environment
theory of constraints(TOC) Efficiency is improved by seeking out and eliminating constraints within the organization
total quality management(TQM) A process for continuous improvement by focusing on customer service and systematic problem solving via teams made up of front-line employees
variancesDeviations from the norm that may provide warning signs of situations requiring corrective action by managers
work in processGoods that are in production but not yet complete; an accumulation of monies spent on direct material, direct labor, and applied manufacturing overhead
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok
