In cost management, a representation that illustrates the cost of resources used over a period and how these are consumed by activities and subsequently traced to products, services, or customers.

Demand that falls outside the limits established by management policy, often due to new customers or changing needs of existing customers.

This ratio calculates the average number of days it takes for a company to turn its inventory into sales. It’s also known as the inventory days formula.

A method of inventory valuation where both variable and a portion of fixed costs are assigned to each unit of production. Fixed costs are typically allocated based on labor hours, machine hours, or material costs.