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Financial Terms | |
Analytical Review |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
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Definition of Analytical ReviewAnalytical ReviewThe process of attempting to infer the presence of potential problems
Related Terms:cost-benefit analysis the analytical process of comparing therelative costs and benefits that result from a specific course Material review boardA company committee typically comprising members representing Progress reviewA periodic review of a capital investment project to evaluate its continued economic viability. Visual review systemInventory reordering based on a visual inspection of on-hand Absorption costingA method of costing in which all fixed and variable production costs are charged to products or services using an allocation base. absorption costinga cost accumulation and reporting Absorption costingA methodology under which all manufacturing costs are assigned ![]() Accelerated cost recovery system (ACRS)Schedule of depreciation rates allowed for tax purposes. Accidental Death Benefit (ADB)Coverage against accidental death usually payable in addition to base amount of coverage. Accumulated Benefit Obligation (ABO)An approximate measure of the liability of a plan in the event of a activity analysisthe process of detailing the various repetitive actions that are performed in making a product or Activity-based costingA method of costing that uses cost pools to accumulate the cost of significant business activities and then assigns the costs from the cost pools to products or services based on cost drivers. activity based costing (ABC)A relatively new method advocated for the activity-based costing (ABC)a process using multiple cost drivers to predict and allocate costs to products and services; Activity-based costing (ABC)A cost allocation system that compiles costs and assigns Actual costThe actual expenditure made to acquire an asset, which includes the supplierinvoiced ![]() actual cost systema valuation method that uses actual direct Advance material requestVery early orders for materials before the completion Agency cost viewThe argument that specifies that the various agency costs create a complex environment in Agency costsThe incremental costs of having an agent make decisions for a principal. Aggressive Cost Capitalizationcost capitalization that stretches the flexibility within generally All-in costTotal costs, explicit and implicit. Amortized Costcost of a security adjusted for the amortization of any purchase premium or appraisal costa quality control cost incurred for monitoring attribute-based costing (ABC II)an extension of activitybased costing using cost-benefit analysis (based on increased customer utility) to choose the product attribute Automatic Benefits PaymentAutomatic payment of moneys derived from a benefit. Average-Cost Inventory MethodThe inventory cost-flow assumption that assigns the average Average cost of capitalA firm's required payout to the bondholders and to the stockholders expressed as a Avoidable costscosts that are identifiable with and able to be influenced by decisions made at the business backflush costinga streamlined cost accounting method that speeds up, simplifies, and reduces accounting effort in an environment that minimizes inventory balances, requires Bankruptcy cost viewThe argument that expected indirect and direct bankruptcy costs offset the other BARRA's performance analysis (PERFAN)A method developed by BARRA, a consulting firm in Batch costA cost that is incurred when a group of products or services are produced, batch-level costa cost that is caused by a group of things BenefitAn instruction that pays a cash amount upon the occurrence of a specific event. Benefit Ratio MethodThe proportion of unemployment benefits paid to a company’s Benefit ValueThe amount of cash payable on a benefit. Benefit Wage Ratio MethodThe proportion of total taxable wages for laid off benefits-provided rankinga listing of service departments in an order that begins with the one providing the most service Big BoardA nickname for the New York Stock Exchange. Also known as The Exchange. More than 2,000 Bill of materialsA listing of all the materials and quantities that go to make up a completed product. bill of materialsa document that contains information about Bill of materialsAn itemization of the parts and subassemblies required to create a Bill of materials (BOM)A listing of all parts and subassemblies required to produce one Break-even analysisAn analysis of the level of sales at which a project would make zero profit. break-even analysisanalysis of the level of sales at which the company breaks even. Break-Even AnalysisAn analytical technique for studying the relationships between fixed cost, variable cost, and profits. A breakeven chart graphically depicts the nature of breakeven analysis. The breakeven point represents the volume of sales at which total costs equal total revenues (that is, profits equal zero). Breeder bill of materialsA bill of material that accounts for the generation and budgeted costa planned expenditure business process reengineering (BPR)the process of combining information technology to create new and more effective cafeteria plan a “menu” of fringe benefit options that includecash or nontaxable benefits Capital Cost Allowance (CCA)The annual depreciation expense allowed by the Canadian Income Tax Act. capital investment analysisRefers to various techniques and procedures capitalization of costsWhen a cost is recorded originally as an increase Capitalized Cost An expenditure or accrual that is reported as an asset to be amortized againstfuture-period revenue. Carring costscosts that increase with increases in the level of investment in current assets. carrying costthe total variable cost of carrying one unit of Carrying costThe cost of holding inventory, which can include insurance, carrying costscosts of maintaining current assets, including opportunity cost of capital. Cash costThe amount of cash expended. Cluster analysisA statistical technique that identifies clusters of stocks whose returns are highly correlated committed costa cost related either to the long-term investment Common-base-year analysisThe representing of accounting information over multiple years as percentages company cost of capitalExpected rate of return demanded by investors in a company, determined by the average risk of the company’s assets and operations. Comparative credit analysisA method of analysis in which a firm is compared to others that have a desired controllable costa cost over which a manager has the ability to authorize incurrence or directly influence magnitude conversion costRefers to the sum of manufacturing direct labor and overhead conversion costthe total of direct labor and overhead cost; Corporate processing floatThe time that elapses between receipt of payment from a customer and the correlation analysisan analytical technique that uses statistical CostA resource sacrificed or forgone to achieve a specific objective (Horngren et al.), defined costthe cash or cash equivalent value necessary to attain an CostThe expense incurred to create and sell a product or service. If a product is not cost accountinga discipline that focuses on techniques or Cost Accounting Standards Board (CASB)a body established by Congress in 1970 to promulgate cost accounting cost accumulationthe approach to product costing that determines cost allocationthe assignment, using some reasonable basis, cost avoidancethe practice of finding acceptable alternatives Cost basisAn asset’s purchase price, plus costs associated with the purchase, like installation fees, taxes, etc. Cost behaviourThe idea that fixed costs and variable costs react differently to changes in the volume of Cost-Benefit AnalysisThe calculation and comparison of the costs and benefits of a policy or project. Cost-benefit ratioThe net present value of an investment divided by the investment's initial cost. Also called cost centera responsibility center in which the manager has Cost centreA division or unit of an organization that is responsible for controlling costs. Cost company arrangementArrangement whereby the shareholders of a project receive output free of cost consciousnessa company-wide attitude about the topics cost containmentthe practice of minimizing, to the extent Cost controlThe process of either reducing costs while maintaining the same level of productivity or maintaining costs while increasing productivity. cost control systema logical structure of formal and/or informal Cost depletionA method of expensing the cost of a resource consumed by first determining Cost driverThe most significant cause of the cost of an activity, a measure of the demand for an activity cost drivera factor that has a direct cause-effect relationship Cost driverA factor that directly impacts the incidence of a cost, and which is generally cost driver analysisthe process of investigating, quantifying, cost leadership strategya plan to achieve the position in a cost management system (CMS)a set of formal methods Cost objectAnything for which a measurement of cost is required – inputs, processes, outputs or responsibility centres. Cost objectAn item for which a cost is compiled. For example, this can be a product, Cost of capitalThe required return for a capital budgeting project. Cost of capitalThe costs incurred by an organization to fund all its investments, comprising the risk-adjusted cost of capitalRefers to the interest cost of debt capital used by a business Cost of CapitalThe minimum rate of return a company must earn in order to meet Cost of capitalThe blended cost of a company’s currently outstanding debt instruments Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |