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Definition of By-product
A material created incidental to a production process, which can be
A product that is an ancillary part of the primary production process, having
an incidental output of a joint process; it is salable,
a measure of the demands on activities and,
A bill of material format in which components and subassemblies
a production system dictated by product sales
A method of costing in which all fixed and variable production costs are charged to products or services using an allocation base.
a cost accumulation and reporting
A methodology under which all manufacturing costs are assigned
The use of various forms of gimmickry to distort a compAny's true financial performance in order to achieve a desired result.
A characterization used by the Securities and Exchange
Schedule of depreciation rates allowed for tax purposes.
The sum of all the interest options in your policy, including interest.
An amount of money invested plus the interest earned on that money.
A 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.
A relatively new method advocated for the
a process using multiple cost drivers to predict and allocate costs to products and services;
A cost allocation system that compiles costs and assigns
activity-based management (ABM)
a discipline that focuses on the activities incurred during the production/performance process as the way to improve the value received
The actual expenditure made to acquire an asset, which includes the supplierinvoiced
actual cost system
a valuation method that uses actual direct
Adjusted present value (APV)
The net present value analysis of an asset if financed solely by equity
an organizational unit that performs management activities benefiting the entire organization;
Advance material request
Very early orders for materials before the completion
Agency cost view
The argument that specifies that the various agency costs create a complex environment in
The incremental costs of having an agent make decisions for a principal.
Aggregate Production Function
An equation determining aggregate output as a function of aggregate inputs such as labor and capital.
Aggressive Cost Capitalization
cost capitalization that stretches the flexibility within generally
Total costs, explicit and implicit.
cost of a security adjusted for the amortization of Any purchase premium or
a quality control cost incurred for monitoring
approximated net realizable value at split-off allocation
a method of allocating joint cost to joint products using a
Also called surplus management, the task of managing funds of a financial
attribute-based costing (ABC II)
an extension of activitybased costing using cost-benefit analysis (based on increased customer utility) to choose the product attribute
A debt or equity security not classified as a held-to-maturity security or a trading security. Can be classified as a current or noncurrent investment depending on the intended holding period.
Average-Cost Inventory Method
The inventory cost-flow assumption that assigns the average
Average cost of capital
A firm's required payout to the bondholders and to the stockholders expressed as a
costs that are identifiable with and able to be influenced by decisions made at the business
a streamlined cost accounting method that speeds up, simplifies, and reduces accounting effort in an environment that minimizes inventory balances, requires
Bankruptcy cost view
The argument that expected indirect and direct bankruptcy costs offset the other
A cost that is incurred when a group of products or services are produced,
a cost that is caused by a group of things
The amount of cash payable on a benefit.
A method of securities distribution/ underwriting in which the securities firm agrees to sell
Bill of materials
A listing of all the materials and quantities that go to make up a completed product.
bill of materials
a document that contains information about
Bill of materials
An 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
Large and creditworthy compAny.
With respect to convertible bonds, the value the security would have if it were not convertible
A compAny's book value is its total assets minus intangible assets and liabilities, such as debt. A
An asset’s cost basis minus accumulated depreciation.
The value of an asset as carried on the balance sheet of a
An asset’s original cost, less Any depreciation that has been subsequently incurred.
Net worth of the firm’s assets or liabilities according
book value and book value per share
Generally speaking, these terms
BOOK VALUE OF COMMON STOCK
The theoretical amount per share that each stockholder would receive if a compAny’s assets were sold on the balance sheet’s date. Book value equals:
Book value per share
The ratio of stockholder equity to the average number of common shares. Book value
Book Value per Share
The book value of a compAny divided by the number of shares
Bottom-up equity management style
A management style that de-emphasizes the significance of economic
Breeder bill of materials
A bill of material that accounts for the generation and
a planned expenditure
business process reengineering (BPR)
the process of combining information technology to create new and more effective
an activity that is necessary for the operation of the business but for which a customer would not want to pay
Capital Cost Allowance (CCA)
The annual depreciation expense allowed by the Canadian Income Tax Act.
CAPITAL IN EXCESS OF PAR VALUE
What a compAny collected when it sold stock for more than the par value per share.
capitalization of costs
When a cost is recorded originally as an increase
Capitalized Cost An expenditure or accrual that is reported as an asset to be amortized against
costs that increase with increases in the level of investment in current assets.
the total variable cost of carrying one unit of
The cost of holding inventory, which can include insurance,
costs of maintaining current assets, including opportunity cost of capital.
The amount of cash expended.
Cash management bill
Very short maturity bills that the Treasury occasionally sells because its cash
An amount the insurance compAny will pay if the policyholder ends a whole life
Cash Surrender Value
This is the amount available to the owner of a life insurance policy upon voluntary termination of the policy before it becomes payable by the death of the life insured. This does not apply to term insurance but only to those policies which have reduced paid up values and cash surrender values. A cash surrender in lieu of death benefit usually has tax implications.
Cash Surrender Value
Benefit that entitles a policy owner to an amount of money upon cancellation of a policy.
Cash value added (CVA)
A method of investment appraisal that calculates the ratio of the net present value of an
Certified Management Accountant (CMA)
a professional designation in the area of management accounting that
A transaction in which the seller's intention is to reduce or eliminate a long position in a stock,
An internal department within a compAny staffed by specialists in collecting past due accounts or accounts receivable.
a cost related either to the long-term investment
Assets acquired to create money. May include plant, machinery and equipment, shares of another compAny etc.
company cost of capital
Expected rate of return demanded by investors in a compAny, determined by the average risk of the compAny’s assets and operations.
Related: Unsystematic risk
See asset-specific risk
The collection of money managers of similar investment style used for assessing
An undertaking either (1) to complete a project such that it meets certain specified
A type of agreement to sell whereby a seller retains title to goods sold and delivered to a purchaser until full payment has been made.
Conditional Sale Agreement
An agreement entered into between a conditional buyer and a conditional seller setting out the terms under which goods change hands.
Conditional sales contracts
Similar to equipment trust certificates except that the lender is either the
Contingent deferred sales charge (CDSC)
The formal name for the load of a back-end load fund.
a cost over which a manager has the ability to authorize incurrence or directly influence magnitude
Refers to the sum of manufacturing direct labor and overhead
the total of direct labor and overhead cost;
Also called parity value, the value of a convertible security if it is converted immediately.
Corporate financial management
The application of financial principals within a corporation to create and
Corporate processing float
The time that elapses between receipt of payment from a customer and the
A resource sacrificed or forgone to achieve a specific objective (Horngren et al.), defined
the cash or cash equivalent value necessary to attain an
The expense incurred to create and sell a product or service. If a product is not
a discipline that focuses on techniques or
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