Cost Accounting (14th Edition)

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856 GLOSSARY Time driver. Any factor in which a change in the factor causes a change in the speed of an activity. (682) Time value of money. Takes into account that a dollar (or any other monetary unit) received today is worth more than a dollar received at any future time. (741) Total factor productivity (TFP). The ratio of the quantity of output produced to the costs of all inputs used, based on current period prices. (494) Total-overhead variance. The sum of the flexible-budget variance and the production-volume variance. (278) Transfer price. Price one subunit (department or division) charges for a product or service supplied to another subunit of the same organization. (780) Transferred-in costs. Costs incurred in previous departments that are carried forward as the product’s costs when it moves to a subsequent process in the production cycle. Also called previous department costs. (621) Trigger point. Refers to a stage in the cycle from purchase of direct materials to sale of finished goods at which journal entries are made in the accounting system. (719) Uncertainty. The possibility that an actual amount will deviate from an expected amount. (75) Underabsorbed indirect costs. See underallocated indirect costs. (118) Underallocated indirect costs. Allocated amount of indirect costs in an accounting period is less than the actual (incurred) amount in that period. Also called underapplied indirect costs or underabsorbed indirect costs. (118) Underapplied indirect costs. See underallocated indirect costs. (118) Unfavorable variance. Variance that has the effect of decreasing operating income relative to the budgeted amount. Denoted U. (230) Unit cost. Cost computed by dividing total cost by the number of units. Also called average cost. (35) Unused capacity. The amount of productive capacity available over and above the productive capacity employed to meet consumer demand in the current period. (486) Usage variance. See efficiency variance. (236) Value-added cost. A cost that, if eliminated, would reduce the actual or perceived value or utility (usefulness) customers obtain from using the product or service. (442) Value chain. The sequence of business functions in which customer usefulness is added to products or services of a company. (6) Value engineering. Systematic evaluation of all aspects of the value chain, with the objective of reducing costs and achieving a quality level that satisfies customers. (441) Value streams. All valued-added activities needed to design, manufacture, and deliver a given product or product line to customers. (726) Variable cost. Cost that changes in total in proportion to changes in the related level of total activity or volume. (30) Variable costing. Method of inventory costing in which only all variable manufacturing costs are included as inventoriable costs. Also called direct costing. (301) Variable overhead efficiency variance. The difference between the actual quantity of variable overhead cost-allocation base used and budgeted quantity of variable overhead cost-allocation base that should have been used to produce actual output, multiplied by budgeted variable overhead cost per unit of costallocation base. (267) Variable overhead flexible-budget variance. The difference between actual variable overhead costs incurred and flexiblebudget variable overhead amounts. (267) Variable overhead spending variance. The difference between actual variable overhead cost per unit and budgeted variable overhead cost per unit of the cost-allocation base, multiplied by actual quantity of variable overhead cost-allocation base used for actual output. (269) Variance. The difference between actual result and expected performance. (227) Weighted-average process-costing method. Method of process costing that assigns the equivalent-unit cost of the work done to date (regardless of the accounting period in which it was done) to equivalent units completed and transferred out of the process and to equivalent units in ending work-in-process inventory. (614) Whale curve. A typically backward-bending curve that represents the results from customer profitability analysis by first ranking customers from best to worst and then plotting their cumulative profitability level. (516) Work-in-process inventory. Goods partially worked on but not yet completed. Also called work in progress. (37) Work in progress. See work-in-process inventory. (37) Work-measurement method. See industrial engineering method. (346)
Index Author A Adamy, J., 237 Anderson, S., 146n, 356 Anderson, S. R., 160 Andrews, E., 452 Ansari, S., 440n Areeda, P., 451n Arrington, M., 484 Atkinson, A., 688n Atkinson, A. A., 202n, 557n Atkinson, C., 716n B Baggaley, B., 727n Bailey, C., 361n Banker, R., 478n Baraldi, E., 441 Barkman, A., 451n Barton, T., 356 Bell, J., 440n Berk, J., 812n Biderman, D., 226n Birger, J., 78 Blair, N., 806n Borjesson, S., 194n Boyle, M., 262 Bronisz, P., 558n Brown, S., 680n Brownlee, R., 590 Bruno, A., 2n Bunkley, N., 26n Bustillo, M., 502n Buskirk, E., 717 C Cagilo, A., 716n Carbone, J., 138n Carter, T., 356 Champy, J., 469n Chartrand, S., 717 Chinnis, C., 774n Clark, P., 676n Clifford, S., 78 Clinton, B., 547n Cokins, G., 146n, 511n Cooper, R., 146n, 511n Corkery, M., 825 Cox, J., 686n Cuoto, V., 400 Cutcher-Gershenfeld, J., 356 D Dash, E., 15 Datar, S., 478n Davenport, T. H., 716n Davidson, P., 300n Day, K., 280 Delmar, E., 183n DeMarzo, P., 812n Demski, J., 558n Dillon, D., 108 Ding, D., 738n Dombrowski, R.F., 590n E Edwards, C., 684 Eikenes, B., 587n Eisenhardt, K., 680n Eldon, E., 484 Elliot, D., 825 Erchr, E., 280 Evans, E., 280 F Fazard, R., 518 Federowicz, M., 356 Fox, J., 824n Fraser, R., 186n, 478n G Gage, J., 198 Gandel, S., 825 Garling, W., 15 Garrity, J., 15 Garthwaite, J., 542n Gatti, J. F., 586n Giridharadas, A., 432n Goff, J., 198 Goldratt, E., 312n, 686n Goldstein, J. L., 451n Gollakota, K., 15n Graham, J., 745n Green, M., 15 Gregory, A., 226n Grinnell, D. J., 586n Grossman, M., 356 Gunderson, E., 62n Gumbus, A., 15 Gupta, V., 15 H Hacking, A., 576n Halpern, S., 280 Hammer, M., 469n Hansell, S., 319 Harrington, J., 451n Harris, C., 237 Harris, J. K., 519n Harvey, C., 745n Hayzen, A., 478n Hayes, B., 356 Heijmen, T., 400 Holm, E., 806n Hope, J., 186n, 478n Horvath, P., 187n Huddart, S., 821n Humphries, S., 717 Huston, L., 400 I Iqbal, M. X., 819n J Jaffe, M., 542n Jargon, J., 237 Jolley, J., 451n Jones, C., 390n Jurkus, A., 680n K Kageyama, Y., 670n Kamenev, M., 627 Kaminska, I., 606n Kaplan, R., 356 Kaplan, R. S., 146n, 160, 202n, 466n, 470n, 478n, 511n, 516n, 557n Kaplow, L., 505n Kapner, S., 262 Kaufman, W., 670n Keegan, P., 33 Kesmodel, D., 237 Klammer, T., 320n Knudson, B., 108 Kripalani, M., 432n Kruz, L., 558n L Lacayo, R., 108 Laimon, S., 646n Lampe, S., 198 Latham, G., 187n Leapman, B., 356 Leber, J., 576n Lewin, A., 400 Linebaugh, K., 670n Loomis, C., 26n Lublin, J., 825 Lunsford, L., 644n Lyons, B., 15 M Macario, A., 264 MacArthur, J., 356 Mackey, J., 312n, 686n Mackie, B., 547n Mani, M., 400 Manning, S., 400 Maragonelli, L., 441 Marshall, P. D., 590n Martinez-Jerez, F. A., 160, 466n Matau, R., 793 Matlack, C., 644n Maynard, M., 670n McGregor, J., 702n McWilliams, G., 502n McMaster, J., 793 Melumad, N., 821n Miller, K., 466n Misawa, M., 758 Moore, J., 86n, 416n Moriarity, S., 558n Morris, J., 684 857
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A 1 E=mc 2 This eBook is provided b
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Editorial Director: Sally Yagan Edi
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Contents 1 The Manager and Manageme
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VI CONTENTS Organization Structure
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VIII CONTENTS Irrelevance of Past
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X CONTENTS Comparison of Weighted-
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XII CONTENTS Residual Income 810 E
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XIV ABOUT THE AUTHORS Visa, and th
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XVI PREFACE simplified presentatio
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XVIII PREFACE Chapter 5 has been r
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XX PREFACE We would also like to e
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1 The Manager and Management Accoun
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4 CHAPTER 1 THE MANAGER AND MANAGE
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10 CHAPTER 1 THE MANAGER AND MANAG
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2 An Introduction to Cost Terms and
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28 CHAPTER 2 AN INTRODUCTION TO CO
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3 Cost-Volume-Profit Analysis Lear
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64 CHAPTER 3 COST-VOLUME-PROFIT AN
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4 Job Costing Learning Objectives
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100 CHAPTER 4 JOB COSTING refers t
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102 CHAPTER 4 JOB COSTING Learning
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104 CHAPTER 4 JOB COSTING Decision
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106 CHAPTER 4 JOB COSTING direct m
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108 CHAPTER 4 JOB COSTING Concepts
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110 CHAPTER 4 JOB COSTING monitori
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112 CHAPTER 4 JOB COSTING Manufact
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114 CHAPTER 4 JOB COSTING at the b
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116 CHAPTER 4 JOB COSTING subsidia
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118 CHAPTER 4 JOB COSTING Learning
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120 CHAPTER 4 JOB COSTING proporti
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122 CHAPTER 4 JOB COSTING because
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124 CHAPTER 4 JOB COSTING Required
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126 CHAPTER 4 JOB COSTING 6. How a
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130 CHAPTER 4 JOB COSTING Material
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132 CHAPTER 4 JOB COSTING Budgeted
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134 CHAPTER 4 JOB COSTING 3. Compu
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5 Activity-Based Costing and Activi
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140 CHAPTER 5 ACTIVITY-BASED COSTI
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6 Master Budget and Responsibility
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184 CHAPTER 6 MASTER BUDGET AND RE
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7 Flexible Budgets, Direct-Cost Var
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228 CHAPTER 7 FLEXIBLE BUDGETS, DI
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8 Flexible Budgets, Overhead Cost V
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264 CHAPTER 8 FLEXIBLE BUDGETS, OV
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9 Inventory Costing and Capacity An
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302 CHAPTER 9 INVENTORY COSTING AN
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10 Determining How Costs Behave Le
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342 CHAPTER 10 DETERMINING HOW COS
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11 Decision Making and Relevant Inf
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392 CHAPTER 11 DECISION MAKING AND
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12 Pricing Decisions and Cost Manag
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434 CHAPTER 12 PRICING DECISIONS A
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13 Strategy, Balanced Scorecard, an
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468 CHAPTER 13 STRATEGY, BALANCED
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14 Cost Allocation, Customer-Profit
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504 CHAPTER 14 COST ALLOCATION, CU
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15 Allocation of Support-Department
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544 CHAPTER 15 ALLOCATION OF SUPPO
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16 Cost Allocation: Joint Products
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578 CHAPTER 16 COST ALLOCATION: JO
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17 Process Costing Learning Object
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608 CHAPTER 17 PROCESS COSTING Con
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610 CHAPTER 17 PROCESS COSTING Lea
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612 CHAPTER 17 PROCESS COSTING Exh
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616 CHAPTER 17 PROCESS COSTING equ
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620 CHAPTER 17 PROCESS COSTING Kee
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622 CHAPTER 17 PROCESS COSTING Dat
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624 CHAPTER 17 PROCESS COSTING Tra
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626 CHAPTER 17 PROCESS COSTING Dec
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628 CHAPTER 17 PROCESS COSTING Ope
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630 CHAPTER 17 PROCESS COSTING Pro
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632 CHAPTER 17 PROCESS COSTING 4.
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636 CHAPTER 17 PROCESS COSTING Ter
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638 CHAPTER 17 PROCESS COSTING and
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640 CHAPTER 17 PROCESS COSTING The
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642 CHAPTER 17 PROCESS COSTING pro
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18 Spoilage, Rework, and Scrap Lea
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646 CHAPTER 18 SPOILAGE, REWORK, A
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19 Balanced Scorecard: Quality, Tim
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672 CHAPTER 19 BALANCED SCORECARD:
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20 Inventory Management, Just-in-Ti
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704 CHAPTER 20 INVENTORY MANAGEMEN
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21 Capital Budgeting and Cost Analy
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740 CHAPTER 21 CAPITAL BUDGETING A
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22 Management Control Systems, Tran
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776 CHAPTER 22 MANAGEMENT CONTROL
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Page 864 and 865: 840 APPENDIX A NOTES ON COMPOUND I
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Page 878 and 879: 854 GLOSSARY Real rate of return.
Page 882 and 883: 858 INDEX N Nahmias, S., 416n Nara
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Cost Accounting (14th Edition)

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