Activity Based Costing
Activity based costing is an accounting approach that assigns cost to activities based on their resource usage. Activities can then be related to products, services and projects.Cost Benefit Analysis
Cost benefit analysis is a general term for comparing the costs of a business strategy with its anticipated results.Data Dredging
A brute force method of data analysis that tries to match known statistical models to large sets of data. At risk of finding patterns that are meaningless noise.Data Mining
The analysis of a large repository of data to find meaningful patterns of information. Typically starts with a hypothesis that you want to confirm with data.Demand Forecasting
Demand forecasting is the practice of predicting the market demand for a product or service.Forecasting
Forecasting is the process of making future predictions based on analysis of past data and trends using informal techniques such as educated guesses or formal methods such as statistical analysis.Lifecycle Cost Analysis
Lifecycle cost analysis is the process of evaluating costs over the life of an asset.Net Present Value
Net present value is a metric for evaluating strategies and investments that considers the time value of money.Time Value Of Money
A principle that states that time has an impact on the value of assets.Rate Of Return
The gain or loss on an investment over a period of time expressed as a percentage.Statistical Analysis
The use of probability distributions to solve problems or make predictions.Statistical Model
A probability distribution constructed to support data analysis.Statistical Population
A set of observations that share a set of properties. For example, the set of all coffee drinkers in Japan.Probability Distribution
A function that predicts the results of a set of experiments over a large sample space.Throughput Accounting
A management accounting approach that focuses on the throughput of cash.Theory Of Constraints
A management approach that examines the constraints that are holding an organization back.Debottlenecking
The process of identifying and clearing constraints commonly known as bottlenecks that limit the output of an organization, process or procedure.Total Cost Of Ownership
A financial estimate that seeks to determine the full cost of an investment over its lifetime.Cost To Company
The total annual cost of an employee.Variance Analysis
Variance analysis is a tool of financial control that evaluates the difference between actual costs and budgeted, planned or standard costs.Regression Analysis
A statistical method of investigating the relationships between variables. For example, regression analysis can be used to plot the relationship between two variables on a graph.| Overview: Management Accounting | ||
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Definition | The practice of measuring management objectives. | |
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