cost acg final

prevention costs

costs incurred to prevent the production of products taht do not conform to specifications

appraisal costs

costs incurred to detect which individual units of producats do not conform to specifications

internal failure costs

costs incurred on defective products BEFORE they are shipped

external failure costs

costs incurred on defective products AFTER they are shipped

costs related to time

labor and wages, overhead, rework, time lost to waiting

four perspectives of a balanced scorecard

customer perspective

internal process perspective

learning and growth perspective

financial perspective

costs associated with goods for sale

purchasing cost

ordering cost

carry costs

stockout cost

quality cost

shrinkage cost

just in time purchasing

purchase of materials or goods so that they are delivered just as needed for production or sales. each component in a line is produced as soon as and only when needed by the next step in the line.

capital budgeting process

concerned with whether to acquire a new asset and how to finance it

npv vs irr

npv asumes cash inflows are reinvested at the required rate of return, where irr assumes the inflows are reinvested at the irr

cost

a sacrificed resource

expense

expired asset

cost object

anything for which a cost measurement is desired

opportunity cost

foregon return