Accounting Final Exam Study Guide

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product cost

direct materials

direct labor

manufacturing O/H

indirect labor - factory supervisor

factory utilities

variable cost - constant per unit

fixed cost - constant in total

sunk cost - costs that cannot be reversed; never relevant

opportunity cost

cost accounting

job order - cost system (used in situations where many productions, jobs, and services are produced)

fixed overhead - unit basis cost that varies inversely

committed fixed cost

discretionary fixed cost - may be reduced for a short time

cost of goods sold (merchandising - variable)

contribution margin = sales - variable cost

y=30,000 + 4x

4,000 units

total cost 46,000

B.E. (units) = fixed costs / unit contribution margin

B.E. ($) - fixed costs / c.m. ratio

margin safety = sales - breakeven sales

favorable material price variance

unfavorable material use

bought less than standard materials

dept. held responsible for unfavorable materials (purchasing)