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Safety stock Extra inventory carried to serve as insurance against fluctuations in demand.
Sales budget A budget that describes expected sales in units and dollars for the coming period.
Sales mix The relative combination of products (or services) being sold by an organization.
Scattergraph A plot of (X, Y) data points. For cost analysis, X is activity usage and Y is the associated cost at that activity level.
Scatterplot method A method to fit a line to a set of data using two points that are selected by judgment. It is used to break out the fixed and variable components of a mixed cost. Secondary activity Activity that is consumed by primary activities and/or other secondary activities. Segment A subunit of a company of sufficient importance to warrant the production of performance reports. Segment margin The contribution a segment makes to cover common fixed costs and provide for profit after direct fixed costs and variable costs are deducted from the segment’s sales revenue.
Segmented reporting The preparation of financial performance reports for each segment of importance within a firm.
Sell or process further Relevant costing analysis that focuses on whether a product should be processed beyond the split-off point.
Selling and administrative expenses budget A budget that outlines
planned expenditures for nonmanufacturing activities.
Sensitivity analysis The “what if”
process of altering certain key variables to assess the effect on the original outcome.
Sequential (or step) method A method that allocates service costs to user de- Standard quantity of materials allowed The quantity of materials that should have been used to produce the actual output (Unit materials standard _ A