Periodic buying pattern of firms in certain industries where purchase orders are issued after a fixed number of days from the last purchase
What is Buying Cycle?
100
Materials and supplies that are consumed during the manufacture of a product and which are directly identified with that product.
What is Direct Materials
100
series of interrelated activities designed to generate revenue.
What is Revenue Process?
100
A cost that is incurred to obtain or manufacture a product
What is Product Cost?
100
A pricing strategy where the company first determines the selling price of the product and then decides whether to enter the market
What is Target Pricing?
200
Process that companies undergo when selling a product to a customer.
What is Sales Cycle?
200
Labor involved in production rather than administration, maintenance, and other support services
What is Direct Labor?
200
series of interrelated activities designed to produce the goods the company sells.
What is Conversion Process
200
A past cost; therefore, never relevant in short-term operating decisions
What is Sunk Cost
200
The practice of selling products below cost in an attempt to drive out competition, control the market, and then raise prices
What is Predotary pricing?
300
Indirect costs or overheads are business expenses that are not dependent on the level of goods or services produced by the business
What is Fixed Cost?
300
Refers to indirect factory related costs that are incurred when a product is manufactured.
What is Manufacturing Overhead
300
A series of interrelated activities designed to enable the company to generate revenue
What is Expenditure Process?
300
A benefit forgone when choosing one alternative over another
What is Opportunity Cost?
300
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 are not concerned about price.
What is Skimming pricing
400
Corporate expense that varies with production output.
What is Variable Cost.
400
The point or state at which a person or company breaks even
What is Break even?
400
A cost that changes in direct proportion to the change in the amount of activity driver throughout the relevant range
What is Variable cost
400
A Cost that is incurred to obtain or manufacture a product
What is Nonproduct Cost?
400
Pratice of offering a low price for a new product or service during its initial offering in order to attract customers away from competitors
What is Penetration pricing?
500
A fixed component and a variable component.
What is Mixed Costs.
500
Associated with learning how costs change when there is a change in an organization's level of acitivty
What is Cost behavior?
500
A revenue that changes in direct proportion to the change in the amount of activity driver throughout the relevant range
What is Variable Revenue?
500
A cost that varies with the number of batches regardless of many units are in each batch
What is Batch-related Cost?
500
A price, or pricing strategy, where products are sold by supplier at a price lower than the average cost of production or at a price low enough to make it unprofitable for other to enter the market.