Accounting Terminology
Listed Below Are Eight Technical Accounting Terms Introduced

question 40

Essay

Accounting terminology
Listed below are eight technical accounting terms introduced or emphasized in this chapter:
$$\begin{array} { | l | l | } \hline \text { Activity-based management } & \text { Life-cycle costing } \\\hline \text { Value-added activity } & \text { Non-value-added Sectivity } \\\hline \text { Target costing } & \text { Total quality management } \\\hline \text { Just-in-time manufacturing system } & \text { Value engineering } \\\hline\end{array}$$
Each of the following statements may (or may not) describe one of these technical terms. In the space provided below each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms.
_______ (a) The process of using activity-based costs to help reduce or eliminate non-value-added activities.
_______ (b) Can be eliminated without affecting the desirability of the product from the perspective of the customer.
_______ (c) The length of time for a product to pass completely through a specific manufacturing process.
_______ (d) If eliminated, the desirability of the product to consumers is decreased.
______ (e) Consideration of all potential resources that will be consumed by a product from development through disposal.
______ (f) A method in which a product's cost is determined by subtracting a fixed profit margin from its selling price.
______ (g) An approach that explicitly monitors quality costs and rewards quality enhancing behavior.

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Definitions:

Critical Values

Critical values are specific points on the scale of a test statistic that determine the boundary for rejecting the null hypothesis.

Type I Error

The incorrect rejection of a true null hypothesis, or a false positive, in statistical hypothesis testing.

P-value

A measure in hypothesis testing that indicates the probability of obtaining a result at least as extreme as the one observed, assuming the null hypothesis is true.

Null Hypothesis

A statement in inferential statistics that there is no effect or no difference, and any observed deviation from this state is due to chance.