Glossary of Business and Marketing Terms, Quizzes of Accounting

Download Glossary of Business and Marketing Terms and more Quizzes Accounting in PDF only on Docsity! TERM 1 Allocate DEFINITION 1 To assign an indirect cost to a cost object TERM 2 Assign DEFINITION 2 To attach a cost to a cost object TERM 3 Average Cost DEFINITION 3 The total cost divided by the number of units TERM 4 Biomimicry DEFINITION 4 A means of product design in which a company tries to mimic, or copy, the natural biological process in which dead organisms become the input for another organism process TERM 5 Controllable Costs DEFINITION 5 Costs that can be influenced or changed by management TERM 6 Conversion Costs DEFINITION 6 The combination of direct labor and and manufacturing overhead costs TERM 7 Cost Object DEFINITION 7 Anything for which managers want a separate measurement of costs TERM 8 Cost of Goods Manufactured DEFINITION 8 The cost of manufacturing the goods that were finished during the period TERM 9 Customer Service DEFINITION 9 Support provided for customers after the sale TERM 10 Design DEFINITION 10 Detailed engineering of products and services and the processed for producing them TERM 21 Indirect Materials DEFINITION 21 Materials whose costs are difficult to trace to specific productsq TERM 22 Inventoriable Product Costs DEFINITION 22 All costs of a product that GAAP requires companies to treat as an asset for external financial reporting. These costs are not expensed until the product is sold TERM 23 Life Cycle Assessment DEFINITION 23 A method of production design in which the company analyzes the environmental impact of a product, from cradle to grave, in an attempt to minimize negative environmental consequences throughout the entire life span of the product TERM 24 Manufacturing Company DEFINITION 24 A company that uses labor, plant, and equipment to convert raw materials into new finished products TERM 25 Manufacturing Overhead DEFINITION 25 All manufacturing costs other than direct materials and direct labor; also called factory overhead or indirect manufacturing cost TERM 26 Marginal Cost DEFINITION 26 The cost of producing one more unit TERM 27 Marketing DEFINITION 27 Promotion and advertising of products or services TERM 28 Merchandising Company DEFINITION 28 A company that resells tangible products previously bought from suppliers TERM 29 Other Indirect Manufacturing Costs DEFINITION 29 All manufacturing overhead costs aside from indirect materials and indirect labor TERM 30 Period Costs DEFINITION 30 Costs that are expensed in the period in which they are incurred; often called Operating Expenses, or Selling, General, and Administrative Expenses TERM 31 Perpetual Inventory DEFINITION 31 An inventory system in which both Cost of Goods Sold and Inventory are updated every time a sale is made TERM 32 Periodic Inventory DEFINITION 32 An inventory system in which Cost of Goods Sold is calculated at the end of the period, rather than every time a sale is made TERM 33 Prime Costs DEFINITION 33 The combination of direct material and direct labor costs TERM 34 Production of Purchases DEFINITION 34 Resources used to produce a product or service, or to purchase finished merchandise intended for resale TERM 35 Raw Materials Inventory DEFINITION 35 All raw materials not yet used in manufacturing TERM 46 Wholesaler DEFINITION 46 Merchandising companies that buy in bulk from manufacturers, mark up the prices, and then sell those products to retailers TERM 47 Work in Process Inventory DEFINITION 47 Goods that are partway through the manufacturing process but not yet complete TERM 48 3 Types of Companies DEFINITION 48 1. Service2. Merchandising i. Retailers ii. Wholesalers3. Manufacturing TERM 49 Manufacturer's 3 Types of Inventory DEFINITION 49 1. Raw materials inventory (RM)2. Work in process inventory (WIP)3. Finished goods inventory (FG) TERM 50 Six primary activities in the value chain DEFINITION 50 1. Research and Development2. Design3. Production/Purchases4. Marketing5. Distribution6. Customer Service