Tactical decision making Choosing among alternatives with an immediate or limited end in view.
Taguchi loss function A function that assumes any variation from the target value of a quality characteristic causes hidden quality costs. Tangible products Goods that are produced by converting raw materials through the use of labor and capital inputs such as plant, land, and machinery. Target cost The difference between the sales price needed to achieve a projected market share and the desired per-unit profit.
Target costing A method of determining the cost of a product or service based on the price (target price) that customers are willing to pay. Tariff The tax on imports levied by the federal government.
Technical efficiency The point at which, for any mix of inputs that will produce a given output, no more of any one input is used than is absolutely necessary.
Testable strategy A set of linked objectives aimed at an overall goal that system that simultaneously satisfies the three objectives of accurate
performance evaluation, goal congruence, and autonomy.
Transferred-in costs Costs transferred from a prior process to a subsequent process.
Translation (or accounting) risk The degree to which a firm’s financial statements are exposed to exchange rate fluctuation.
Treasurer The person responsible for the finance function. Specifically, the treasurer raises capital and manages cash and investments.
Turnover The ratio of sales to average
operating assets. U
Underapplied overhead The amount by which actual overhead exceeds applied overhead.
Unfavorable (U) variances Variances produced whenever the actual input amounts are greater than the budgeted or standard allowances.
Unit cost To