Chapter 11 Terms
This is the term used to describe lowering costs as much as possible without sacrificing quality.
What is a competitive advantage?
This method lowers costs without sacrificing or decreasing quality below that of our competitors' products.
What is the Cost Leadership method?
This technique is used to employ continuous improvement and eliminate non-value-adding activities.
What is the Kaizen method?
These terms describes activity costs that do and don't affect the end customer (one of each).
What are Value-Added and Non-Value-Added activity costs?
This is the term used to describe performance measures that are based on both financial and non-financial data.
What is Activity-Based Responsibility Accounting?
This term is used to describe activities in our company's part of the value chain.
What is an Internal Linkage?
This method chooses one market or segment of the market on which to focus, then caters products towards that segment.
What is the Focusing method?
Under Kaizen costing, this term describes producing more products with the same total cost.
What is Activity Sharing?
This term describes budgeting that fluctuates with increases/decreases in activity output.
What is Activity Flexible Budgeting?
Activity Performance uses these three measures to determine whether or not the activity is performing well.
What are Efficiency, Quality, and Time?
This term includes the following activities: Structural and Executional.
What are Organizational Activities?
This method is used to create a product that has something no other product on the market can offer.
What is the Differentiation method?
Under Kaizen costing, this term describes finding the lowest cost strategy without sacrificing the quality of the product.
What is Activity Selection?
This term describes keeping track of costs over time.
What is a Trend in Activity Costs?
This term is used to describe determining how much a product should cost to produce.
What is Target Costing?
This term is used to describe activities that occur with our suppliers and customers.
What is an External Linkage?
This method chooses a combination of three other methods.
What is Strategic Positioning?
Under Kaizen costing, this term describes the removal of non-value-added activities.
What is Activity Elimination?
This term describes a comparing comparing itself to a set standard.
What is Benchmarking?
This term is used to describe an inventory system that "pulls" inventory through.
What is a Just-in-Time (JIT) Inventory System?
This term is used to describe day to day activities.
What are Operational Activities?
This method creates customer value.
What is the Differentiation method?
Under Kaizen costing, this term describes the reduction of time/resources required to perform a particular activity.
What is Activity Reduction?
This term describes how many times a company can perform a specific activity.
What is Activity Capacity Management?
This type of management is even more difficult to implement than Activity-Based Costing and requires a commitment from the entire organization.
What is Activity Based Management?