Glossary

ABC Analysis or Pareto Analysis: This is a technique used to identify the percentage of highest value items by priority. For example, A items may be worth 80 per cent of the value but only 20 per cent of the volume, B items 10 per cent value, 30 per cent volume and C items 50 per cent value from 50 per cent volume. Note the percentages vary from organizational context to context.
Activity Based Cost (ABC): This is a costing system based on identifying activities that cause cost. It differs significantly from traditional product costing by focusing on the activities causing cost. For example, it may be customer activities and therefore customer account profitability may be determined. It is not simply a different way to cost products as is sometimes suggested by commentators.
Activity Based Management (ABM): ABM develops from Activity Based Costing and is a tool for managers to intervene based on the activities under-taken. Activity cost and revenue streams will be identified in ABM systems and ways sought to do things better (more efficiently) and to do better things (change processes to be more effective).
Average Cost (AVCO): A system of valuing inventories based on the average cost of bought in and distributed inventories. Sometimes the term WAVCO is used to indicate that the average is a weighted average.
B2B: Business-to-Business commercial activities such as buyer supplier dealings. It is usually used to define E-business activities through the Internet.
B2B2C: A combination of business-to-business and business...

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Supply Chain Strategies: Customer Driven and Customer Focused

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Glossary

A-C

Supply Chain Strategies: Customer Driven and Customer Focused

TABLE OF CONTENTS

Glossary

A-C

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