Chapter 12 Flashcards
Business Administration 61 with Kvedar at University of Vermont
About this deck
By: Stephanie Nelb
Textbook:
Managerial Accounting with Connect Plus
Created: 2012-04-29
Size: 16 flashcards
Views: 1
Textbook:
Managerial Accounting with Connect PlusCreated: 2012-04-29
Size: 16 flashcards
Views: 1
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4 costs that should be included in decision making
avoidable costs, opportunity costs, differential costs, and relevant costs
avoidable cost
a cost that can be eliminated by choosing one alternative over another in a decision
bottleneck
a machine or some other part of a process that limits the total output of the entire system
constraint
a limitation under which a company must operate, such as limited available machine time or raw materials, which restricts the company's ability to satisfy demand
joint costs
costs that are incurred up to the split-off point in a process that produces joint products
joint products
two or more products that are produced from a common input
make or buy decision
a decision concerning whether an item should be produced internally or purchased from an outside supplier
relaxing (or elevating) the constraint
an action that increases the amount of a constrained resource
relevant benefit
a benefit that differs between alternatives in a decision
relevant cost
a cost that differs between alternatives in a decision
sell or process further decision
a decision as to whether a joint product should be sold at the split-off point or sold after further processing
special order
a one-time order that is not considered part of the company's normal ongoing business
split-off point
that point in the manufacturing process where some or all of the joint products can be recognized as individual products
sunk cost
any cost that has already been incurred and that cannot be changed by any decision made now or in the future
vertical integration
the involvement by a company in more than one of the activities in the entire value chain from development through production, distribution, sales, and after-sales service
advantages of making a part instead of buying it
1. a smoother flow of parts and materials for production
2. less dependence on outside suppliers
About this deck
By: Stephanie Nelb
Textbook: Managerial Accounting with Connect Plus
Created: 2012-04-29
Size: 16 flashcards
Views: 1
Textbook:
Managerial Accounting with Connect PlusCreated: 2012-04-29
Size: 16 flashcards
Views: 1
About StudyBlue
STUDYBLUE makes things that make you better at school.
Things like online flashcards with photos and audio.
Things like personalized quizzes and friendly reminders about when (and what) to study next.
Think of it as a digital backpack™: access to all of your study materials online and on your phone.
STUDYBLUE exists to make studying efficient and effective for every student, for free. Join us.
“I have used this website for three exams, and I see a huge difference in my test results.”
Naj
Naj