determines if the project is acceptable. Contains items, years, amount, percent factor, and present value
What is net present value
100
Include all costs involved in acquiring or making a product. Direct material, direct labor and manufacturing overhead
What is product cost
100
cost that has already been incurred and cannot be avoided regardless of what the manager decides to do
What is sunk cost
200
simple counts of the # of times an activity occurs
# of bills sent out to customers
What is transaction driver
200
Sum of direct materials and direct labor
What is prime cost
200
generate cash inflows and outflows related to revenue and expense transactions that affect net income
What is operating activities
200
rate of return of an investment project over its useful life
What is internal rate of return
200
all the cost that are not used in production. all selling and administrative expenses. (commissions, advertising, executive salaries and public relations)
What is Period cost
300
measures relative probability which is the ranking of products, customers and other business segments to determine which should be emphasized
What is probability index
300
Level of sales at which profit is zero
What is Break-even point
300
measure the amount of time required to perform an activity
What is duration driver
300
Amount remaining from sales after variable expenses have been deducted.
What is contribution margin
300
related to borrowing from and repaying principal to creditors and completing transactions with company's owners, such as selling or repurchasing shares of common stock and paying dividends.
What is financing activities
400
Range of activity within which the assumption that cost behavior is strictly linear
What is Relevant range
400
cost that can be eliminated by choosing one alternative over another.
Fer example: choosing to go to the movies, cost of renting DVD can be avoided
What is avoidable cost
400
cost that remains constant in total, regardless of changes in level of activity
What is fixed cost
400
length of time it takes the project to recover its useful life
What is payback period
400
related to acquiring or disposing of noncurrent assets such as property, plant and equipment, long term investments and loans to another entity
What is investment activities
500
measures a company's ability to fund its capital expenditures for property, plant, and equipment and its dividends from its net cash provided by operating activities
What is Free cash flow
500
an estimate of what revenues and costs should have been given the actual level of activity for the period
What is flexible budget
500
The excess of budgeted or actual sales dollars over the break-even volume of sales dollars
What is margin of safety
500
varies, in total, in direct proportion to changes in the level of activity