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Acronym used for the 8 wastes identified by advocates of lean thinking
	Costs incurred to avoid producing poor-quality goods or services
	Raw materials are purchased just in time for production
	Considers that each product manufactured may require different types and amount of activities
	Costs incurred on defective units before delivery to customers
	Management philosophy focused on creating value for the customer by eliminating waste
	Increase the accuracy of job costs when each department incurs different types and amounts of manufacturing overhead and/or each product or job uses departments to a different extent
	Uses activity based cost information to make decisions that increase profits while satisfying customer needs
	No inventory is made until the order has been received
	Total manufacturing costs associated with an activity
	Costs incurred because defects are not detected until after delivery to customers
	Tools, materials and equipment are stored in proximity to where they will be used more frequently
	Costs incurred to detect poor-quality goods or services
	Activities for which the customer is willing to pay
	Total estimated activity cost pool / total estimated activity allocation base
	The cost allocation system causes some products to be overcosted and other products to be undercosted
	Another name for the predetermined manufacturing overhead rate
	Waste activities

1.	Cost distortion
2.	Plantwide rate
3.	Department overhead rates
4.	Activity based costing
5.	Activity cost pool
6.	Activity cost allocation rate
7.	Activity based management
8.	Value-added activities
9.	Non-value-added activities
10.	Lean thinking
11.	DOWNTIME
12.	Point-of-use storage
13.	Pull system
14.	Prevention costs
15.	Appraisal costs
16.	Internal failure costs
17.	External failure costs
18.	JIT inventory philosophy