| aggregate (or total) productivity | Total output divided by total input.
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| benchmarking (or competitive benchmarking) | The continual search for the most effective method of accomplishing a task, by comparing existing methods and performance levels with those of other organizations or with other subunits within the same organization.
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| controllability | The extent to which managers are able to control or influence a cost or cost variance.
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| cost variance | The difference between actual and standard cost.
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| customer-acceptance measures | The extent to which a firm's customers perceive its product to be of high quality.
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| delivery cycle time | The average time between the receipt of a customer order and delivery of the goods.
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| direct-labor efficiency variance | The difference between actual and standard hours of direct labor multiplied by the standard hourly labor rate.
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| direct-labor rate variance | The difference between actual and standard hourly labor rate multiplied by the actual hours of direct labor used.
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| direct-material price variance (or purchase price variance) | The difference between actual and standard price multiplied by the actual quantity of material purchased.
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| direct-material quantity variance | The difference between actual and standard quantity of materials allowed, given actual output, multiplied by the standard price.
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| gain-sharing plan | An incentive system that specifies a formula by which the cost savings from productivity gains achieved by a company are shared with the workers who helped accomplish the improvements.
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| in-process quality controls | Procedures designed to assess product quality before production is completed.
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| management by exception | A managerial technique in which only significant deviations from expected performance are investigated.
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| manufacturing cycle efficiency (MCE) | The ratio of process time to the sum of processing time, inspection time, waiting time, and move time.
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| manufacturing cycle time | The total amount of production time (or throughput time) required per unit.
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| partial (or component) productivity | Total output (in dollars) divided by the cost of a particular input.
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| perfection (or ideal) standard | The cost expected under perfect or ideal operating conditions.
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| practical (or attainable) standard | The cost expected under normal operating conditions.
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| standard cost | A predetermined cost for the production of goods or services that serves as a benchmark against which to compare the actual cost.
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| standard-costing system | A cost-control and product-costing system in which cost variances are computed and production costs are entered into work-in-process inventory at their standard amounts.
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| standard direct-labor quantity | The number of labor hours normally needed to manufacture one unit of product.
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| standard direct-labor rate | Total hourly cost of compensation, including fringe benefits.
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| standard direct-material price | The total delivered cost, after subtracting any purchase discounts taken.
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| standard direct-material quantity | The total amount of material normally required to produce a finished product, including allowances for normal waste and inefficiency.
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| statistical control chart | A plot of cost variances across time, with a comparison to a statistically determined critical value.
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| task analysis | Setting standards by analyzing the production process.
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| velocity | The number of units produced in a given time period.
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