【正文】 variablewhose value does not depend on thevalue of another variable. For example,in the cost formula Y _ F _VX, the variable X is an independentvariable.Full private costing The assignmentof only private costs to individualproducts.Functionalbased costing (FBC) Anapproach for assigning costs ofshared resources to products andother cost objects using only productionor unitlevel drivers.Functionalbased management(FBM) A managerial approach thatattempts to control costs by focusingon the efficiency of organizationalsubunits.Functionalbased management (FBM)accounting system An accounting informationsystem that emphasizes theuse of functional organizational unitsto assign and manage costs.Functionalbased responsibility accountingsystem A control systemdefined by centering responsibility onorganizational units and individualswith traditional budgets and standardcosting used to evaluate and monitorperformance.Future value The value that will accumulateby the end of an investment’slife if the investment earns a specifiedpounded return.GGainsharing Providing cash incentivesfor a pany’s entire workforce thatare keyed to quality and productivitygains.Goal congruence The alignment of amanager’s personal goals with thoseof the organization.Goodness of fit The degree of associationbetween Y and X (cost andactivity). It is measured by how muchof the total variability in Y is explainedby X.HHalfyear convention The assumptionthat a newly acquired asset is in servicefor onehalf year of its firsttaxable year regardless of the date theservice actually began.Hedging A way of insuring againstgains and losses on foreign currencyexchange.? 853 1/22/04 2:27 PM Page 853Indirect costs Costs that cannot betraced to a cost object.Industrial value chain The linked setof valuecreating activities from basicraw materials to enduse customers.Innovation process A process that anticipatesthe emerging and potentialneeds of customers and creates newproducts and services to satisfy thoseneeds.Input tradeoff efficiency The leastcost,technically efficient mix of inputs.Inseparability The fact that producersof services and buyers of servicesmust usually be in direct contact foran exchange to take place.Intangibility When buyers of servicescannot see, feel, hear, or taste a servicebefore it is bought.Intercept parameter The fixed cost,representing the point where the costformula intercepts the vertical axis. Inthe cost formula Y _ F _ VX, F isthe intercept parameter.Internal business process perspectiveA balanced scorecard viewpoint thatdescribes the internal processesneeded to provide value for customersand owners.Internal constraints Limiting factorsfound within the firm (such as machinetime availability).Internal failure costs Costs incurredbecause products and services fail toconform to requirements where lackof conformity is discovered prior toexternal sale.Internal linkages Relationships amongactivities within a firm’s value chain.Internal measures Measures that relateto the processes and capabilitiesthat create value for customers andshareholders.Internal rate of return The rate of returnthat equates the present value of aproject’s cash inflows with the presentvalue of its cash outflows (., it setsthe NPV equal to zero). Also, the rateof return being earned on funds thatremain internally invested in a project.Internal value chain The set of activitiesrequired to design, develop,Kaizen standard An interim standardthat reflects the planned improvementfor a ing period.Kanban system An information systemthat controls production on ademandpull basis through the use ofcards or markers.Keepordrop decisions Relevant costinganalyses that focus on keeping ordropping a segment of a business.LLabor efficiency variance (LEV) Thedifference between the actual directlabor hours used and the standard directlabor hours allowed multipliedby the standard hourly wage rate.Labor rate variance (LRV) The differencebetween the actual hourly ratepaid and the standard hourly ratemultiplied by the actual hoursworked.Lag measures Oute measures ormeasures of results from past efforts.Lead measures (performance drivers)Factors that drive future performance.Lead time For purchasing, the time toreceive an order after it is placed. Formanufacturing, the time to produce aproduct from start to finish.Learning and growth (infrastructure)perspective A balanced scorecardviewpoint that defines the capabilitiesthat an organization needs to createlongterm growth and improvement.Life cycle costs All costs that are associatedwith the product for itsentire life cycle.Lifecycle assessment An approachthat identifies the environmental consequencesof a product through itsentire life cycle and then searches foropportunities to obtain environmentalimprovements.Lifecycle cost assessment A methodthat assigns costs and benefits to environmentalconsequences andimprovements.Lifecycle cost management The managementof valuechain activities sothat a longterm petitive advantageis created.produce, market, distribute, and servicea product (the product can be aservice).Inventory The money an organizationspends in turning raw materials intothroughput.Inventory analysis A lifecycle assessmentstep where the quantities andtypes of materials, energy, and environmentalreleases are described.Investment center A division of apany that is evaluated on the basisof return on investment.JJustintime manufacturing Ademandpull system whose objectiveis to eliminate waste by producing aproduct only when it is needed andonly in the quantities demanded bycustomers.JIT purchasing A purchasing methodthat requires suppliers