Accounting Unit 17: Vocabulary

Please study the 20 vocabulary terms from Unit 17: Cost accounting. Then continue to the activities.
anticipate
to imagine or expect that something will happen
Shareholders are anticipating a record dividend payment this year.
appreciable
large or noticeable enough to have a significant effect
The crisis has had an appreciable effect on the financial market.
attributable to
caused by or connected to
The company's success is attributable to the new CEO's leadership.
bottom-line
the final line in the accounts, the net profit or loss made by a company
The CFO is working on minimizing the effects of the scandal on the bottom-line.
breakeven point
the figure at which neither profit or loss is made
By calculating the cost of production, we found the breakeven point of $5.35 per item.
budget
a plan that shows how much money you have, will have and what it will be spent on
Corporate planners are preparing the budget for the next financial year.
classify
to divide things into groups according to their type
Costs are classified into two groups, direct and indirect.
cost accounting
the process in which all costs are examined
Most large companies use cost accounting to help save money and maximize efficiency.
cost reduction
the process of minimizing any expenses due from direct business activity
In times of hardship, cost reduction is essential to a company's success.
costs incurred
any expenses due as a direct result of business activity
By looking at costs incurred on a particular product, we can see where money can be saved.
feasibility
the possibility that can be made, done or achieved or is reasonable
The management accountant is looking into the feasibility of outsourcing bookkeeping.
implement
to put into effect
The new legislation will be implemented next year.
matching principle
the idea that expenses should be allocated to a revenue stream where possible
The matching principle should be followed in order to reach accurate net income figures.
notional
existing as an idea or as an approximate amount
I'm sorry but I cannot give you an exact figure, but the notional amount is 560,000.
opportunity costs
the imagined loss made on not following a certain course of action instead
We cannot afford to expand into both markets so please find out the opportunity cost of expanding into Iran instead of Iraq.
overall
in general rather than in particular
We need to study the overall costs and locate an area in which savings can be made.
project
to calculate an amount or figure expected in the future based on information in the present
The financial team projected net earnings of over $750,000, if it happens it will be a record for the company
relative
as judged or measured in comparison with something else
Taking the two ideas into consideration, the relative merits of the first are clear.
successive
happening one after another
The company has made successive losses in the past five years.
underlying
real but not immediately visible
Investments are made by evaluating the underlying value.
Go to Unit Activities