benchmarkingMeasuring products or processes against industry standards, an essential part of total quality management
capacity utilizationThe degree to which an organization's output capabilities are being deployed or utilized
cost driverThe factor that is viewed as causing costs to be incurred within an organization
databaseAn information storehouse, usually electronic, that can be queried to extract data meeting certain parameters. Enables singular data entry and multiple data output.
direct costsA cost easily traced to a specific job; generally direct material and direct labor
indirect costsA cost not easily traced to a specific job; generally categorized as factory or manufacturing overhead
job cost sheetA document representing a compilation of cost data for a specific job
just in time inventoryRaw materials are received from supplies just as they are needed in the production process
KaizenJapanese term used to describe a blitz like approach to study processes and install efficiency within an organization
KanbanJapanese term which means some form of signal that a particular inventory is ready for replenishment
lean manufacturingIndicative of an environment where waste has been trimmed; entails a focus on standardization, speed, and quality, without compromising responsiveness to customer demand
materials requisition formForm showing what material has been removed from the raw materials stock and put into production
overapplied overheadApplied overhead exceeds the actual amount; usually viewed as a favorable outcome, because less has spent than anticipated for the level of achieved production
overhead application rateA rate used to apply manufacturing overhead to output; estimated factory overhead for a period divided by the estimated application base
Six SigmaA trademarked quality management system developed by Motorola; driven by pursuit of statistical results that reflect near perfection in production and processing
transfer pricingThe system of setting prices at which goods are exchanged between affiliated units; usually involving cross-border transactions
underapplied overheadApplied overhead is less than the actual amount; usually viewed as a unfavorable outcome, because more has spent than anticipated for the level of achieved production
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