AJAX progress indicator
  • ABC/activity based costing
    Alternative costing method for strategic management; divides production into activities, defines costs for activities, and allocates costs to objects based on activity consumption
  • activity
    An event that gives rise to the consumption of resources
  • activity cost pool
    The costs assigned to a particular activity
  • activity driver
    Event that causes consumption of an activity
  • batch-level activity
    Activities that relate to each batch of production; independent of the number of units within that batch
  • cost object
    The output for which costing information is to be determined under ABC; can be product or service related, or customer, market, etc.
  • cost of production report
    A report used in a process costing environment to tabulate the costs incurred within a particular stage/department
  • customer-level activity
    Activities that relate to each customer; independent of the volume of goods and services provided to the specific customer
  • entity-sustaining activity
    Activities that relate to an entity's ability to operate; independent of business volume
  • equivalent units
    A measure of physical units expressed in terms of finished units
  • market-level activity
    Activities that relate to the number of markets in which an entity operates; independent of the number of products, customers, etc.
  • process costing
    Process costing is a method to allocate the total costs of production to homogenous units produced via a continuous process that usually involves multiple steps or departments
  • product-level activity
    Activities that relate to the number of products produced; independent of the number of units produced
  • resource
    The elements consumed by activities and cost objects
  • resource driver
    The concept that activities create the need for resources which will be consumed in the production process
  • unit-level activity
    Activities that relate to the number of units of output; each additional unit of production requires another activity
  • weighted-average process costing
    A process costing technique where all units of production are assigned the same cost; determined by blending of current period costs with beginning inventory cost