Value Chain
Financial Players
Cost Calculations
"Cost" Terms
Ethics
100
The creation and development of ideas related to new products, services, or processes.
What is Research and Development (R&D)?
100
Manages entire finance and accounting function.
Who is the Chief Financial Officer (CFO)?
100
Direct Materials + Direct Labor
What are Prime Costs?
100
All costs except for direct costs.
What are indirect costs? (or Manufacturing Overhead)
100
Refrain from using confidential information for unethical or illegal advantage.
What is Confidentiality?
200
The collection and assembly of resources to produce a product of deliver a service.
What is Production?
200
Determines where to invest cash balances, obtains lines of credit.
Who is the Treasurer?
200
Beginning Inventory + Purchases - Ending Inventory
What is Costs of Goods Sold?
200
Cost recognized for financial reporting when incurred (expensed).
What are period costs?
200
Disclose all relevant information that could be expected to influence an intended user's understanding of the reports, analyses, or recommendations.
What is Credibility?
300
The process of delivering products or services to customers.
What is Distribution?
300
Evaluates cost of products and processes.
Who is the Cost Accounting?
300
Also known as "Total Manufacturing Costs" or "Product Cost."
What is Full Absorption Cost?
300
Forgone benefit from the best (forgone) alternative course of action.
What are Opportunity Costs?
300
Discuss the issue with your immediate supervisor, clarify relevant ethical issues and consult and attorney.
What are Resolutions of Ethical Conflict?
400
Design Center, Engineering facilities used to develop and test prototypes.
What is Design?
400
Recommends policies and procedures to reduce inventory losses?
Who is the internal auditor?
400
Total Manufacturing Costs - Direct Materials
What are Conversion Costs?
400
Process of assigning indirect costs to products, services, people, business units, etc.
What is cost allocation?
400
Provide decision support information and recommendations that are accurate, clear, concise, and timely.
What is Competence?
500
Returns processing, warranty repairs.
What is Customer Service?
500
Maintains the accounting records.
Who is the Controller?
500
The sum of all costs of manufacturing and selling a unit of product.
What is the full cost?
500
Costs that change in direct proportion with a change in volume within the relevant range of activity.
What are variable costs?
500
Abstain from engaging in or supporting any activity that might discredit the profession.
What is Integrity?
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