Chapter 16 Flash Cards

Questão	Responda
appropriation	v
coefficient of determination	a measure of dispersion that indicates the goodness of fit of the actual observations to the least squares regression line; indicates what proportion of the total variation in y is explained by the regression model
committed costs	a cost related to either the long-term investment in plant and equipment of business or the organizational personnel who are deemed essential by top management; cannot be changed without long-run detriment to the organization.
cost avoidence	refers to reductions that cause future spending to fall, but not below the level of current spending.
Cost consciousness	a company-wide attitude about the topics of cost understanding, cost containment, cost avoidance, and cost reduction.
Cost containment	the practice of minimizing to the extent possible period-by-period increases in per unit variable and total fixed costs.
cost control system	a logical structure of formal and/or informal activities designed to analyze and evaluate how well expenditures are managed during a period.
cost reduction	the practice of lowering current costs, especially those that may be in excess of what is necessary.
discretionary cost	a cost that is periodically reviewed by a decision maker in a process of determining whether it continues to be in accord with ongoing policies.
electronics data interchange EDI	a system that allows for electronic data transmission between organizations; commonly used in the process of e-procurement.
engineered costs	a cost that has been found to bear an observable and known relationship to a quantifiable activity base.
e-procurement systems	an electronic B2B buy-side application controlling the requisitioning, ordering, and payment functions for inputs.
forward contracts	an informal agreement traded through a broker-dealer network to buy and sell specified assets, typically currency, at a specified price at a certain future date.
hedging	using options and forward contracts to manage price risk
options	an agreement that gives the holder the right to purchase a given quantity of a specific item at a specific price.
price elasticity	a numerical measure of the relationship of supply or demand to price changes.
random	the concept that some portion of a cost is not predictable based on the cost driver the cost is stochastically rather than deterministically related to the cost driver.
spend analysis	is the process of collecting, cleansing, classifying and analyzing expenditure data with the purpose of decreasing procurement costs, improving efficiency, and monitoring compliance.
uncertainty	the doubt or lack of precision in specifying future outcomes.
working capital	the amount remaining after total current liabilities are subtracted from total current assets; measures the amount of an organization's liquid assets; may also be referred to as not working capital.

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Chapter 16 Flash Cards

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	Criado por Antonio Orange quase 9 anos atrás