Parts of Conversion/Revenue/ Expenditure Processes
Misc
100
A bill that is received by the purchaser of goods or services from an outside supplier.
What is a vendor invoice?
100
The cost of direct materials which can be easily identified with the unit of production.
What are direct material product costs?
100
A pricing strategy in which the company sets its initial selling price high in an attempt to appeal to those individuals who want to be the first to have the product and who aren't concerned about price.
What is Skimming Prices?
100
Series of interrelated activities designed to produce the goods the company sells?
What are examples of indirect material product costs?
200
A document that’s filed as evidence of purchase.
What is a Purchasing Report?
200
A cost that is assignable to a specific product, or work order.
What is direct labor products cost?
200
A pricing method that involves (1) identifying the price at which a product will be competitive in the marketplace, (2) defining the desired profit to be made on the product, and (3) computing the target cost for the product by subtracting the desired profit from the competitive market price.
What is Target pricing?
200
Series of interrelated activities designed to enable the company to generate revenues.
What is expenditure process?
200
Units or groups of employees or units
What are cells?
300
Communicate and document precisely what the company is ordering from a vendor.
What is a Purchase order?
300
A cost valuing inventory and for determining the cost of goods sold.
What is MOH product costs?
300
1=Cost
2=Competitors
3=customers
4=product
What are the four primary influences on selling prices?
300
Series of interrelated activities designed to generate revenue.
What is the revenue process?
300
A situation where legal title of goods passes to the customer when goods are received.
What is FOB destination?
400
Document generated by a user department or storeroom-personnel to notify the purchasing department of items it needs to order, their quantity, and the time frame.
What is a Purchase Requisition?
400
Manufacturer's product costs other than direct materials and direct labor. Also referred to as manufacturing overhead, factory overhead, factory burden, or burden.
What is Indirect labor product costs?
400
A price strategy where the company attempts to set a selling price for the life of the product based on it's total life-cycle costs.
What is life-cycle pricing?
400
Two processes that both receive and accept goods and services.
What are the expenditure and revenue process?
400
A situation where legal title of goods passes to the customer when goods are picked up by the customer carrier.
What is FOB shipping point?
500
A shipping agreement between the business and the common carrier.
What is Bill of Lading?
500
The costs of activities that cannot be traced to individual products or services but support the organization as a whole
What is facility sustaining cost?
500
A pricing strategy where a company sets initial selling price low in an attempt to gain a share of the market from its competitors.
What is Penetrating Pricing?
500
Process that provides customer support.
What is the revenue process?
500
An allowance granted to a customer who had purchased merchandise with a pricing error or other problem not involving the return of goods.