Absorption costing
Chapter 8
Backflush costing
Chapter 8
Carrying costs
Chapter 8
Common fixed expenses
Chapter 8
Direct fixed expenses
Chapter 8
Economic order quantity
(EOQ)
Chapter 8
Just-in-time (JIT)
Chapter 8
Lead time
Chapter 8
Ordering costs
Chapter 8
Reorder point
Chapter 8
Safety stock
Chapter 8
Segment
Chapter 8
Segment margin
Chapter 8
Chapter 8
Variable costing
Chapter 8
Stockout costs
A product-costing method that assigns all
manufacturing costs to units of product:
direct materials, direct labour, variable
manufacturing overhead, and fixed
manufacturing overhead. Page 372
Chapter 8
The costs of holding inventory. Page 384
Chapter 8
Fixed costs that are directly traceable to a
given segment and, consequently, disappear
if the segment is eliminated. Page 381
Chapter 8
A demand-pull system whose objective is to
eliminate waste by producing a product only
when it is needed and only in the quantities
demanded by customers. Page 390
Chapter 8
The costs of placing and receiving an order.
Page 384
Chapter 8
A method of costing under which labour
costs are added into overhead costs and
allocated to products so that materials and
overhead are the only elements of cost for
which we need to account. Page 391
Chapter 8
Fixed expenses that cannot be directly
traced to individual segments and that are
unaffected by the elimination of any one
segment. Page 381
Chapter 8
The amount that should be ordered
(or produced) to minimize the total ordering
(or setup) and carrying costs. Page 386
Chapter 8
The time required to receive the economic
order quantity once an order is placed or a
setup is started. Page 388
Chapter 8
The point in time when a new order should
be placed (or setup started). Page 388
Chapter 8
Extra inventory carried to serve as insurance
against changes in demand that may cause
stockouts. Safety stock is computed by
multiplying the lead time by the difference
between the maximum rate of usage and the
average rate of usage. Page 389
Chapter 8
The contribution a segment makes to cover
common fixed costs and provide for profit
after direct fixed costs and variable costs are
deducted from the segment’s sales revenue.
Page 383
Chapter 8
A product-costing method that assigns
only variable manufacturing costs to
production: direct materials, direct labour,
and variable manufacturing overhead. Fixed
manufacturing overhead is treated as a
period cost. Page 372
Chapter 8
A subunit of a company of sufficient
importance to warrant the production of
performance reports. Page 381
Chapter 8
The costs of insufficient inventory. Page 384
Chapter 8