Create an account
Future orientation, helps managers make decisions, No GAAP, detailed information for Internal Users.
costs vary as the level of activity change. changes in total proportion to changes in the related level of total activity/volume (DM, DL)
costs that do not change regardless of the level of activity as long as it is with in the relevant range. (FO)
band of normal activity level or volume in which there is a specific relationship between the level of activity/volume and cost in question.
Cost Volume Profit (CVP)
examines the behavior of total rev, total costs, Op Inc as changes occur in the output level, selling price, variable cost per unit, or the fixed costs of a product
MoS in $ / Budgeted (actual) Revenue [Revenue would have to decrease by the MoS % to reach the BE Revenue]
describes the effects that FC have on changes in Op Income as changes occur in units sold (CM)
Degree of Op Leverage
CM / Op Income [Op Leverage is high when the entity has a high proportion of FC in its cost structure)
High Low Method
# of Units: H1 and L1, Cost: H2 and L2
VC per Unit: (H2 - L2 / (H1-L1)
FC: L2 - VCL -or- H2 - VCH
VCH: H1 x VC per Unit
VCL: L1 x VC per Unit
Please allow access to your computer’s microphone to use Voice Recording.
Having trouble? Click here for help.
We can’t access your microphone!
Click the icon above to update your browser permissions and try again
Reload the page to try again!Reload
Press Cmd-0 to reset your zoom
Press Ctrl-0 to reset your zoom
It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.
Please upgrade Flash or install Chrome
to use Voice Recording.
For more help, see our troubleshooting page.
Your microphone is muted
For help fixing this issue, see this FAQ.
Star this term
You can study starred terms together