1/ Variable Costs: The variable cost will be 40% higher [ an increase of 21‚000 - 15‚000=6‚000 units] Direct Material used 1‚060‚000 Variable Costs: Direct Labor 1‚904‚000 Direct material used [ 1‚060‚000 *1.4] 1‚484‚000 Unit costs [ 6‚335‚600 / 21‚000] =$ 301.7 Indirect Materials and supplies 247‚000 Direct Labor [ 1‚904‚000 * 1.4] 2‚665‚600 Variable Cost/ Unit = 228.27 at both 15k & 21k units Power to run plant eqip 213‚000 Indirect Materials
Premium Variable cost Costs Fixed cost
each purpose discuss whether information about current or future product costs is required. What implication does your answer have for developing a product costing system? L-S‚ T & H‚ page 131. Purpose Current / Future Product Costs Short-term decisions: product mix‚ pricing Future Longer-term strategic decisions Future Long-term pricing Future Plan future product-related costs Future Control of product costs Current Reimbursement contracts Current External reporting (inventory
Premium Inventory Costs Variable cost
Demand DEFINITION OF SHORT RUN(SR) Some input cannot be changed within a time period There 2 type of inputs: I. Fixed inputs II. Variable inputs There 2 type of production of costs: I. Fixed costs • Fixed costs are those that do not vary with output and typically include rents‚ insurance‚ depreciation‚ set-up costs‚ and normal profit. II. Variables costs • Variable costs are costs that do vary with output‚ and
Premium Costs Marginal cost Variable cost
Cost Variance Analysis Presented by : Edmund C. Cabrera MBA Student Universidad de Manila Definitions STANDARD COSTS – are predetermined or target unit costs of production which should be attained under efficient conditions. It is the amount and costs of direct material‚ direct labor‚ and factory overhead required to produce one unit of finished product. STANDARD COST SYSTEM – is an accounting system which uses standard costs rather than actual costs to account for units as they flow through
Premium Direct material price variance
Historical Cost Mean? A measure of value used in accounting in which the price of an asset on the balance sheet is based on its nominal or original cost when it was acquired by the company. The historical-cost method is used for assets in the United States under generally accepted accounting principles (GAAP). Cost concepts and terms 1. Cost The amount of expenditure (actual or notional) incurred on or attributable to a specified article‚ product or activity is referred to as cost. 2
Premium Costs Variable cost
* Short Run Costs A period of time in which the quantity of some inputs cannot be increased beyond the fixed amount that is available. For example‚ what quantity of inventory to order is a short run decision. Whether or not to build a new factory would be considered a long run decision. 1. Total fixed Coast The total fixed cost curve graphically represents the relation between total fixed costs incurred by a firm in the short-run production of a good or service and the quantity produced
Premium Costs Economics of production Variable cost
Assignment 2: Cost Behaviors and Allocation Prof. Gilton Grange HSA 525 Analyze the complexity of cost behaviors in health care organizations and describe how costs are classified according to their relationship with volume. Health services managers are vitally interested in how costs are affected by changes in volume. Before costs can be managed‚ one must have an understanding of how and why costs are being incurred. For‚ example medications dispensed from the pharmacy are variable costs items
Premium Variable cost Costs Fixed cost
From the article ‘Brainology’‚ Mr. Dweck argues about ‘Fixed mindset’‚“Many student believe that intelligence is fixed‚ that each person has a certain amount” (Carol S. Dweck‚ 2008). Fixed mindset makes learners afraid to challenge‚ reduces confidence. On the other hand‚ Mr. Dweck also talks about ‘Growth mindset’‚ learners who have positive mindset‚ believes intelligence
Premium Writing Learning Creative writing
Costs associated with two alternatives‚ code-named Q and R‚ being considered by Lang Corporation are listed below: | | Alternative Q | Alternative R | Supplies costs | $ 64‚500 | $ 64‚500 | Power costs | $ 36‚500 | $ 21‚500 | Inspection costs | $ 11‚400 | $ 26‚300 | Assembly costs | $ 38‚600 | $ 28‚000 | | Required: | a. | Which costs are relevant and which are not relevant in the choice between these two alternatives? |
Premium Net present value Variable cost Investment
Types of Costs by Behavior Cost behavior refers to the way different types of production costs change when there is a change in level of production. There are three main types of costs according to their behavior: Fixed Costs: Fixed costs are those which do not change with the level of activity within the relevant range. These costs will incur even if no units are produced. For example rent expense‚ straight-line depreciation expense‚ etc. Fixed cost per unit decreases with increase in production
Premium Costs Regression analysis Variable cost