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Description
Flashcards by Sophia Lynch, updated more than 1 year ago
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Created by Sophia Lynch
almost 4 years ago
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| Question | Answer |
| How many marks are there for Information Systems, Financial Accounting and Cost Accounting? | IS = 25 marks FA = 25 marks CA = 50 marks |
| In management accounting how are costs classified? | Classify our costs due to BEHAVIOUR . |
| What is a variable cost? | A cost that varies with the rate of activity. E.g. hourly wages |
| What is a fixed cost? | A cost that does NOT vary with the rate of activity. E.g. Salary |
| Management accounting is about... | planning and control. |
| Total Cost = ? | Fixed Cost + (Variable Rate x Activity) |
| What will variable cost at a variable rate look like? | An upward angled line from left to right. @ Variable Rate VC = X amount per unit |
| What will variable cost as a total look like? | A straight line across. @ total VC = X amount |
| Never do what to fixed costs? | UNITISE!!! |
| What does total fixed costs look like? | A straight line across. |
| What are two types of variable costs? | 1. Raw Materials 2. Direct Labour |
| What together = prime costs | 1. Raw Materials 2. Direct Labour |
| What is 'relevant range'? | Within a range, things have a certain behaviour pattern. |
| What are stepped costs? | Different fixed costs have different relevant ranges. As you step up on the graph, this range can get bigger. |
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