GLOSSARY OF ACCOUNTING TERMS 379
Semi-fixed costs Costs that are constant within a defined level of
activity but that can increase or decrease when
activity reaches upper and lower levels.
Semi-variable costs Costs that have both fixed and variable
components.
Sensitivity analysis An approach to understanding how changes in
one variable of cost – volume – profit analysis are
affected by changes in the other variables.
Set-up The time required to make ready a machine or
process for production, e.g. changing equipment
settings.
Shareholders’ funds The capital invested in a business by the
shareholders, including retained profits.
Shareholder value Increasing the value of the business to its
shareholders, achieved through a combination of
dividend and capital growth in the value of the
shares.
Source document The document that records a transaction and
forms the basis for recording in a business’s
accounting system.
Standard costs A budget cost for materials and labour used for
decision-making, usually expressed as a per unit
cost that is applied to standard quantities from a
bill of materials and to standard times from a
routing.
Stock See inventory.
Strategic management
accounting
The provision and analysis of management
accounting data about a business and its
competitors, which is of use in the development
and monitoring of strategy (Simmonds).Sunk costs Costs that have been incurred in the past.
Tangible fixed assets Physical assets that can be seen and touched, e.g.
buildings, machinery, vehicles, computers etc.
Target costing A method of costing that is concerned with
managing whole-of-life costs of a
product/service during the product design
phase – the difference between target price (to
achieve market share) and the target profit
margin.
Target rate of return
pricing
A method of pricing that estimates the desired
return on investment to be achieved from the
fixed and working capital investment and
includes that return in the price of a
product/service.