CHAPTER 18 - CHAPTER 18 continuous process improvement A...

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CHAPTER 18 continuous process improvement A management approach that is part of the overall total quality management philosophy. The approach requires all employees to constantly improve processes of which they are a part or for which they have managerial responsibility. controller The chief management accountant of a division or other segment of a business. controlling A phase in the management process that consists of monitoring the operating results of implemented plans and comparing the actual results with the expected results. conversion costs The combination of direct labor and factory overhead costs. cost A payment of cash (or a commitment to pay cash in the future) for the purpose of generating revenues. cost object The object or segment of operations to which costs are related for management's use, such as a product or department. cost of finished goods available The beginning finished goods inventory added to the cost of goods manufactured during the period. cost of goods manufactured The total cost of making and finishing a product. cost of goods sold The cost of finished goods available for sale minus the ending finished goods inventory. cost of merchandise sold The cost that is reported as an expense when merchandise is sold. decision making A component inherent in the other management processes of planning, directing, controlling, and improving. direct costs Costs that can be traced directly to a cost object. direct labor cost The wages of factory workers who are directly involved in converting materials into a finished product. direct materials cost The cost of materials that are an integral part of the finished product. directing The process by which managers, given their assigned level of responsibilities, run day-to-day operations. factory burden Another term for manufacturing overhead or factory overhead. factory overhead cost All of the costs of producing a product except for direct materials and direct labor. feedback Measures provided to operational employees or managers on the performance of subunits of the organization. These measures are used by employees to adjust a process or a behavior to achieve goals. See management by exception. financial accounting The branch of accounting that is concerned with recording transactions using generally accepted accounting principles (GAAP) for a business or other economic unit and with a periodic preparation of various statements from such records. finished goods inventory The direct materials costs, direct labor costs, and factory overhead costs of finished products that have not been sold. indirect costs Costs that cannot be traced directly to a cost object. line department
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This note was uploaded on 10/31/2011 for the course ACCT 08 taught by Professor A during the Spring '11 term at Fort Hays.

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CHAPTER 18 - CHAPTER 18 continuous process improvement A...

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