Chapter One Key Terms

Chapter One Key Terms - CHAPTER ONE Activities The actions...

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C HAPTER O NE Activities The actions taken by an organization to accomplish its mission. Activity-Based Management (ABM) Management of the activities of an organization to add the greatest value by developing products that satisfy the needs of that organization’s customers. Average cost The total cost of making products divided by the total number of products made. Benchmarking Identifying the best practices used by world-class competitors. Best practices Practices used by world-class companies Continuous improvement Total quality management feature that refers to an ongoing process through which employees learn to eliminate waste, reduce response time, minimize defects, and simplify the design and delivery of products and services to customers Cost allocation Process of dividing a total cost into parts and assigning the parts to relevant objects. Cost-plus pricing Pricing strategy that sets the price at cost plus a markup equal toa percentage of the cost. Direct labor Wages paid to production workers whose efforts can be easily and conveniently traced to products. Direct raw materials
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This note was uploaded on 04/07/2008 for the course ACCT 202 taught by Professor Wessels during the Spring '06 term at Clemson.

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Chapter One Key Terms - CHAPTER ONE Activities The actions...

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