as direct materials‚ direct labor‚ and overhead. ____ 6. Costs can display variable‚ fixed‚ or mixed behavior‚ and it important that they are classified accurately. ____ 7. A cost that does not change as output changes is a variable cost‚ and one that changes is a fixed cost. ____ 8. Fixed costs are costs that‚ in total‚ are constant within the relevant range as the level of the associated driver varies. ____ 9. Variable costs are defined as costs that‚ in total‚ are constant regardless of change
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MODULE 1 Management Accounting Module 1 Management Accounting Objectives Aim To provide an understanding of the nature of management accounting and its role in the process of managing and controlling the enterprise. Key Concepts ▪ Management accounting ▪ Management control ▪ Decision making Learning Outcomes By the end of this section you should be able to understand: ▪ The purpose of management accounting ▪ The concepts and processes of control. The
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price of $30. During the month‚ fixed costs were $16‚800 and variable costs were 80% of sales Business - Accounting BE18-1 Monthly production costs in Pesavento Company for two levels of production are as follows. Cost 3‚000 units 6‚000 units Indirect labor $10‚000 $20‚000 Supervisory salaries 5‚000 5‚000 Maintenance 4‚000 7‚000 Indicate which costs are variable‚ fixed‚ and mixed. Indirect labor Variable cost Supervisory salaries Fixed cost Maintenance Mixed
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3. Within the relevant range‚ if there is a change in the level of the cost driver then A. fixed and variable costs per unit will change. B. fixed and variable costs per unit will remain the same. C. fixed costs per unit will remain the same and variable costs per unit will change. D. fixed costs per unit will change and variable costs per unit will remain the same. 4. The strategy MOST likely to reduce the breakeven point would be to
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these changes in the selling expenses once the budget is set for that year. Thus a new budgeting method is being researched at this time. The new method‚ if adopted‚ would be based on both fixed and variable costs. The fixed costs will be those incurred at the minimum sales volume and the variable costs would be expressed as an amount per sales dollar. President Riesman and the controller understand that basing the selling costs on sales has some limitations‚ but believe that this method would
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com/online- accounting-course/30Xpg05.html. Caplan‚ Dennis. “Management Accounting Concepts and Techniques.” Management Accounting‚ 2010. Print. Fundamental Finance. Variable Costs and Fixed Costs. Retrieved at; http://economics.fundamentalfinance.com/micro_costs.php. More Business. Build the Business of Your Dreams: Fixed and Variable Cost Control: Effective Cost Cutting Strategies. Retrieved at; http://www.morebusiness.com/running_your_business/profitability/Controlling-Costs.brc.
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BU 122 Assignment 6 BYP 22-2 TBoillard (a) The variable costs per unit are: Cost of goods sold ($600‚000 ÷ 200‚000) = $3.00 Selling expenses ($140‚000 ÷ 200‚000) = .70 Administrative expenses ($40‚000 ÷ 200‚000) = .20 Total
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Cost of goods sold: Variable costs 225 612 270 360 1‚467 Contribution margin $195 $228 $270 $320 $1‚013 Unit revenue and costs information: Computer Place Poster Paper Napkins Mats Board Selling price $14.00 $ 7.00 $12.00 $ 8.50 Materials $ 6.00 $ 4.50 $ 3.60 $ 2.50 Variable factory overhead 1.50 .60 2.40 2.00 Unit variable cost $ 7.50 $ 5.10 $ 6.00 $ 4.50
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even. Shower Noozles Thermostats Storm Windows Total Sales Volume 800 220 500 1520 Sales Price 10 80 100 Sales Revenue 8000 17600 50000 75600 Variable Cost 8 70 95 Variable cost to Sales 6400 15400 47500 69300 Unit Contribution to Sales 2 10 5 Utilization of Capacity Total Variable Cost 6400 15400 47500 69300 Fixed Cost 27040 6760 16900 50700 Profit -25440 -4560 -14400 -44400 BEP (unit) 13520 676 3380 17576 CM ratio 0.2 0
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Foxy Originals 1. Discuss the pros and cons to launching the Foxy brand in the U.S. Pros: Kluger and Orol had established strong Foxy jewelry market in Canada but it is getting saturated. By expanding into the United States Foxy would be able to avoid oversaturation of the Canadian market. The U.S. jewelry market was almost 10 times larger than the Canadian market which offers great opportunity for their product exposure. With this expansion‚ Kluger and Orol could expand their production as
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