Glossary – Chapter 20


AJAX progress indicator
  • Alternative costing method for strategic management; divides production into activities, defines costs for activities, and allocates costs to objects based on activity consumption
  • An event that gives rise to the consumption of resources
  • The costs assigned to a particular activity
  • Event that causes consumption of an activity
  • Activities that relate to each batch of production; independent of the number of units within that batch
  • The output for which costing information is to be determined under ABC; can be product or service related, or customer, market, etc.
  • A report used in a process costing environment to tabulate the costs incurred within a particular stage/department
  • Activities that relate to each customer; independent of the volume of goods and services provided to the specific customer
  • Activities that relate to an entity's ability to operate; independent of business volume
  • A measure of physical units expressed in terms of finished units
  • Activities that relate to the number of markets in which an entity operates; independent of the number of products, customers, etc.
  • 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
  • Activities that relate to the number of products produced; independent of the number of units produced
  • The elements consumed by activities and cost objects
  • The concept that activities create the need for resources which will be consumed in the production process
  • Activities that relate to the number of units of output; each additional unit of production requires another activity
  • 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