Cost Ch1 Key Terms

Set of activities that transforms raw resources into the goods and services that end users purchase and consume.

Those activities that customers perceive as adding utility to the goods or services they purchase.

Set of firms and individuals that sells goods and servies to the firm.

Set of firms and individuals that buys and distributes goods and services from the firm.

Field of accounting that reports financial position and income according to accounting rules.

Field of accounting that measures, records, and reports information about costs.

Rules, standards, and conventions that guide the preparationi of financial accounting statements for firms registerd in the U.S.

Rules, standards, and conventions that guide the preparation of the financial accounting statements in many other countries.

Activities that do not add value to the good or service from the customer's perspective.

Process of comparing benefits (often measured in savings or increased profits) with costs associated sith a proposed change within an organization.