Chapter 14 Key Terms

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Cost Accounting
Prudence Dingani
Flashcards by Prudence Dingani, updated more than 1 year ago
Prudence Dingani
Created by Prudence Dingani over 7 years ago
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Question Answer
Asset Turnover A ratio measuring asset productivity and showing the number of sales dollars generated by each dollar of assets
Carbon Footprint A reflection of the total of all greenhouse gas emissions created by an organization's activities during a specified time
Compensation Strategy A foundation for the compensation plan that addresses the role compensation should play in the organization
Du Pont Model A computation that indicates the return on investment as it is affected by profit margin and asset turnover
Economic Value Added (EVA®) A measure of the extent to which income exceeds the dollar cost of capital; calculated as income minus (invested capital times the cost of capital percentage)
Employee Stock Ownership Plan (ESOP) A profit-sharing compensation program in which investments are made in an employer's stock(s)
Expatriate A parent company or third-country national assigned to a foreign subsidiary, or a foreign national assigned to the parent company
Lag (or Lagging) Indicator A (generally) financial outcome assessed by historical data that has resulted from past actions or decisions
Lead (or Leading ) Indicator A financial or nonfinancial outcome (including opportunities and problems) that helps assess strategic progress and guide decision making before lag indicators are known; statistical data about the actionable steps that will create desired results
Process Productivity The total number of units produced during a period during value-added processing time
Process Quality Yield The proportion of good units that resulted from the activities expended
Profit Margin The ratio of income to sales
Residual Income (RI) The profit earned by a responsibility center that exceeds an amount “charged” for funds committed to that center
Tax Deferral A tax treatment in which income is subject to tax in a future period
Tax Exemption A tax treatment in which income is never subject to income taxation
Throughput The total output that is completed and sold during a period
Values Statement A statement reflecting an organization's culture by identifying fundamental beliefs about what is important to that organization
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