1. Activity Analysis: Activity analysis involves breaking down complex processes into individual activities to understand their costs and value. It helps identify non-value added activities and opportunities for improvement.
2. Activity Capacity: Activity capacity refers to the maximum amount of work or output that an activity can handle within a given time period.
3. Activity Elimination: Activity elimination involves identifying and removing non-value added activities from a process to increase efficiency and reduce costs.
4. Activity Flexible Budgeting: Activity flexible budgeting involves creating budgets that are flexible and can be adjusted based on changes in activity levels. It helps in evaluating performance and controlling costs.
5. Activity Output Measure: Activity output measure quantifies the amount of output or work produced by an activity. It helps in assessing the efficiency and effectiveness of activities.
6. Activity Reduction: Activity reduction refers to the process of minimizing or eliminating non-value added activities to improve efficiency and reduce costs.
7. Activity Selection: Activity selection involves choosing the most appropriate activities to achieve desired outcomes efficiently. It considers factors such as cost, value, and feasibility.
8. Activity Sharing: Activity sharing involves pooling or combining activities across different processes or departments to achieve economies of scale and resource optimization.
9. Activity Volume Variance: Activity volume variance measures the difference between the actual activity level and the planned or budgeted activity level. It helps in assessing the impact of activity level changes on costs and performance.
10. Activity-Based Management (ABM): Activity-Based Management is a management approach that focuses on managing activities to improve efficiency, reduce costs, and enhance value creation. It involves analyzing and optimizing activities to align with organizational goals.
11. Activity-Based Responsibility Accounting: Activity-Based Responsibility Accounting is a system that assigns responsibility for costs and performance to specific activities or individuals. It helps in evaluating performance and facilitating cost control.
12. Benchmarking: Benchmarking involves comparing an organization's processes or performance against best practices or industry standards. It helps identify areas for improvement and sets performance targets.
13. Continuous Improvement: Continuous improvement refers to the ongoing effort to enhance processes, products, or services incrementally. It involves identifying and implementing changes to achieve better efficiency, quality, and customer satisfaction.
14. Driver Analysis: Driver analysis involves identifying the key factors or variables that influence the costs or performance of activities. It helps in understanding the underlying drivers and making informed decisions.
15. Financial Measures: Financial measures are metrics used to assess the financial performance and health of an organization. Examples include profitability ratios, return on investment, and cash flow analysis.
16. Financial-Based Responsibility Accounting System: Financial-Based Responsibility Accounting System is a traditional accounting system that assigns responsibility for costs to departments or cost centers based on financial data. It focuses on cost control and accountability.
17. Kaizen Costing: Kaizen costing is a cost management technique that involves continuous cost improvement throughout the product life cycle. It aims to reduce costs without compromising quality or customer value.
18. Kaizen Standard: Kaizen standard refers to the benchmark or target level of performance set for continuous improvement efforts. It provides a reference point for evaluating progress and identifying areas for further improvement.
19. Non-Value Added Activities: Non-value added activities are activities that do not contribute to the creation of value for the customer. They are considered wasteful and should be minimized or eliminated.
20. Non-Value Added Costs: Non-value added costs are costs incurred in performing non-value added activities. They represent expenses that do not add value to the organization or its products/services.
21. Process Creation: Process creation involves designing and establishing new processes or workflows to achieve desired outcomes. It includes defining activities, roles, and responsibilities.
22. Process Improvement: Process improvement refers to the systematic effort to enhance existing processes to achieve better efficiency, quality, or customer satisfaction. It involves identifying and implementing changes to eliminate waste and optimize performance.
23. Process Innovation (Business Engineering): Process innovation, also known as business engineering, involves reimagining and redesigning processes to achieve significant improvements in efficiency, effectiveness, or value creation. It often involves radical changes or breakthrough ideas.
24. Process Value Analysis: Process value analysis involves evaluating the value-added and non-value added activities within a process. It helps identify opportunities for improvement and cost reduction.
25. Responsibility Accounting: Responsibility accounting is a management accounting system that assigns responsibility for costs and performance to specific individuals or departments. It helps in evaluating performance and facilitating cost control.
26. Unused Capacity Variance: Unused capacity variance measures the difference between the actual capacity used and the planned or budgeted capacity. It helps in assessing the efficiency of resource utilization.
27. Value-Added Activities: Value-added activities are activities that directly contribute to the creation of value for the customer. They are essential and should be optimized to enhance efficiency and customer satisfaction.
28. Value-Added Costs: Value-added costs are costs incurred in performing value-added activities. They represent expenses that directly contribute to the creation of value for the organization or its products/services.
29. Value-Added Standard: Value-added standard refers to the benchmark or target level of performance set for value-added activities. It provides a reference point for evaluating efficiency and identifying areas for improvement.
