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Activity-Based Cost Accounting (ABC)

SCM Supply Chain Management Definitions & Terms

Jan 19, 2011

Strategic Alliance

A relationship formed by two or more organizations that share (proprietary), participate in joint investments, and develop linked and common processes to increase the performance of both companies. Many organizations…

Jan 19, 2011

Program Management

The coordinated management of a portfolio of projects to achieve a set of business objectives is called program management. Or, a program might refer to an ongoing set of activities…

Jan 19, 2011

Lead Times/Cycle Times

1) A span of time required to perform a process (or series of operations). 2) In a logistics context, the time between recognition of the need for an order and…

Jan 19, 2011

Distribution Channel Design

The planned channels of inventory disbursement from one or more sources to field warehouses and ultimately to the customer. There are several levels in the distribution network structure. Source: APICS…

Jan 19, 2011

Capacity Strategy

One of the strategic choices that a firm must make as part of its manufacturing strategy. There are three commonly recognized capacity strategies: lead, lag, and tracking. A lead capacity…

Jan 14, 2011

Capacity – Information Flows

Capacity is the capability of a worker, machine, work center, plant, or organization to produce output per time period. Information aids us in addressing capacity availability, unused capacity and performance…

Jan 13, 2011

Business-to-Business Commerce (B2B)

Business being conducted over the Internet between businesses. The implication is that this connectivity will cause businesses to transform themselves via supply chain management to become virtual organizations, reducing costs,…

Jan 13, 2011

Agreements

An agreement should clearly state what you are buying and its cost. Delivery terms and responsibility, Installation related issues, if applicable, an acceptance provision detailing how and when the buyer…

Jan 13, 2011

Activity-Based Management (ABM)

The use of activity-based costing information about cost pools and drivers, activity analysis, and business processes to identify business strategies; improve product design, manufacturing, and distribution; and remove waste from…

Jan 13, 2011

Activity-Based Cost Accounting (ABC)

A cost accounting system that accumulates costs based on activities performed and then uses cost drivers to allocate these costs to products or other bases, such as customers, markets, or…