The term 'slack' refers to periods of reduced activity or efficiency within a business, manufacturing, or operations context. These periods are generally characterized by a slowdown in demand, productivity, or throughput.
Specific Order Costing, often compared to job costing, is a method of assigning production costs to a distinct batch or order. It provides a bespoke way to track the profitability and efficiency of unique production runs.
Specifications are detailed instructions provided in conjunction with product plans or purchase orders. They may stipulate the type of materials to be used, special construction techniques, dimensions, colors, or a list of the qualities and characteristics of a product.
Standard Mix refers to the predetermined proportions set for the use of different materials in the manufacturing process or the budgeted total volume of sales expressed in proportions of a range of related products. This helps in calculating various variances such as direct materials mix variance, direct materials yield variance, sales margin mix variance, and sales margin yield variance.
The standard price is a predetermined cost established for a product or service, commonly used as a benchmark for budgeting, costing, and performance evaluation in manufacturing and other industries.
In the context of standard costing systems, standard time refers to the time allowed to carry out a production task. It can be expressed either as the standard time allowed or in terms of standard hours representing the output achieved.
Steel intensive refers to products or production technologies that rely heavily on high amounts of steel content. These can include buildings, machinery, infrastructure, and vehicles.
Straight-line production is a traditional production-line method where all parts of the process are arranged sequentially on a straight production line, facilitating the efficient, step-by-step assembly of each piece.
Strict product liability refers to the legal responsibility of all parties involved in the manufacture, distribution, and sale of a product for any damage it causes, regardless of fault or intention.
Supply Chain Management (SCM) involves tracking the movement and demand for components used in manufacturing across various suppliers to provide insight and the ability to respond promptly to changes. SCM aims to optimize production, decrease manufacturing time, minimize inventory, streamline order fulfillment, and reduce costs.
A synthetic system refers to a production process that combines two or more materials or parts to complete a finished product.
Target price refers to the projected price level of a financial security, as projected by an analyst or determined by an acquirer in various financial and business contexts.
Theoretical Capacity refers to the maximum output that could be achieved by an organization or machinery without interruptions or inefficiencies.
Throughput accounting is an approach to short-term decision-making in manufacturing that treats all conversion costs as fixed and ranks products based on a throughput accounting ratio (TAR), particularly useful when a constraint or scarce resource exists.
A turnkey project refers to a type of project that is constructed or manufactured by a company and completed in its entirety before being handed over to the client, who can then immediately use it.
Twin Plants, or maquiladoras, refer to manufacturing facilities in Mexico often employed by U.S. companies for their cost-effective labor and proximity to the U.S. market.
In cost accounting, the situation where an insufficient amount of factory overhead was charged to the products manufactured.
An underdeveloped country is characterized by a low standard of living, an economy primarily based on primitive technologies for farming and manufacturing, and limited industrialization.
In cost accounting, unit-level activities are those that are performed each time a unit is produced. These include tasks directly correlated with the production volume, such as machine operation and direct labor.
The elements of an organization's indirect manufacturing costs that vary in total in proportion to changes in the level of production or sales.
Vertical integration involves the combination of companies operating at different stages within the same industry's supply chain. It strengthens control over production, distribution, and other critical steps, often resulting in increased efficiency and cost savings.
The period during which the operators of a machine or the machinery itself are idle or waiting for work, materials, or repairs. This is a key concept in manufacturing, logistics, and service industries.
A widget is a symbolic gadget used to represent a hypothetical product, typically in scenarios where a generic example is required to illustrate a manufacturing, business, or marketing concept. Widgets serve as versatile placeholders in theoretical models, classroom examples, and business simulations.
Work in Process (WIP) refers to the materials and components that have begun their journey in the production process but are not yet completed products. It is an essential concept in manufacturing and inventory management.
Work in Process (WIP), also known as work in progress, refers to the partially finished goods within a manufacturing operation. These items are in the production line but are not yet complete. The valuation of WIP typically follows financial principles and methods such as FIFO (First-In, First-Out), LIFO (Last-In, First-Out), or average cost method.
Work in Progress (WIP) refers to the goods that are partially completed in a manufacturing process and are still undergoing the necessary transformation to become full-fledged finished products. It is a vital part of inventory management and accounting in production-focused industries.
An estimate of the time required to carry out a series of manufacturing procedures, by studying the operations involved by means of time, methods, and work studies.
