the reporting of the costs of manufactured products, normally direct materials, direct labor, and factory overhead, as product costs.
sales less (-) variable costs and variable selling and administrative expenses.
contribution margin analysis
the systematic examination of the differences between planned and actual contribution margins.
Costs that can be influenced (increased, decreased, or eliminated) by someone such as a manager or factory worker.
the variable cost of goods sold deducted from sales. Sales (-) VC of goods sold.
a portion of business that can be assigned to a manger for profit responsibility.
Cost that can not be influenced (increased, decreased, or eliminated) by someone such as a manager or factory worker.
the effect of a difference in the number of units sold, assuming no change in unit sales price or unit cost.
the relative distribution of sales among the various products available for sale.
variable cost of goods sold
consists of direct materials, direct labor, and variable factory overhead for the units sold.
the concept that considers the cost of products manufactured to be composed only of those manufacturing costs that increase or decrease as the volume of production rises or falls (direct materials, direct labor, and variable factory overhead).