{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Key Terms - Chapter 14

Key Terms - Chapter 14 - Continuous improvement Concept...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Continuous improvement- Concept requiring every manager and employee continually to look to improve operations. Control- Practice of preparing budgets for a selected number of future periods and revising those budgets as each period is completed. Controllable or not controllable cost- Costs that a manager has the power to control or at least strongly influence. Conversion costs- Expenditures incurred in converting raw materials to finished goods; includes direct labor costs and overhead costs. Cost object- Product, process, department, or customer to which costs are assigned. Customer orientation- Company position that its managers and employees be in tune with the changing wants and needs of consumers. Cycle efficiency (CE)- A measure of production efficiency, which is defined as value-added (process) time divided by total cycle time. Cycle time (CT)- A measure of the time to produce a product or service, which is the sum of process time, inspection time, move time, and wait time; also called throughput time. Direct costs- Costs incurred for the benefit of one specific cost object. Direct labor- Efforts of employees who physically convert materials to finished product. Direct labor costs- Wages and salaries for direct labor that are separately and readily traced through the production process to finished goods.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern