Flashcards
Chapter 2: Cost Concepts and Behavior
Flashcards do conjunto (10)
- 1Opportunity CostThe foregone benefit from the best foregone alternative course of action.
- 2Direct CostsProduct costs that can be traceable to units produced.
1. Direct materials
2. Direct Labor
3. Manufacturing overhead - 3Prime CostsDirect materials + Direct labor
- 4Conversion CostsCosts to convert DM to final product.
Direct labor + Manufacturing OH - 5Fixed CostsUnchanged as the volume of activity changes.
- 6Variable CostsChange in direct proportion to the change in volume of activity.
- 7Full CostsSum of all costs of manu. and selling a unit (FC and VC)
=DM+DL+VOH+FOH+VMarkAd+FMarkAd - 8Full Absorption CostAll variable and fixed manufacturing costs.
=DM+DL+VOH+FOH - 9Gross Margin=Revenue-COGS
COGS=Full Absorption Cost(# Units Sold) - 10Contribution Margin=Sales-Variable Cost per unit
The amount available to cover fixed costs and earn profit.
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- Cost Accounting FlashCards sobre Chapter 2: Cost Concepts and Behavior, criado por L F em 29-09-2017.
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- L F
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