#### Study sets matching "cost accounting volume profit"

#### Study sets matching "cost accounting volume profit"

Cost-Volume-Profit Analysis (CVP)

Contribution Margin

Contribution Margin Per Unit

Contribution Margin Ratio (CMR)

Technique that examines changes in profits in response to chan…

Total Revenue - Variable Costs

Selling price per unit - Variable cost per unit

Percentage by which the selling price (or revenue) per unit ex…

Cost-Volume-Profit Analysis (CVP)

Technique that examines changes in profits in response to chan…

Contribution Margin

Total Revenue - Variable Costs

Contribution Margin

Unit Contribution Margin

Contribution Margin Ratio

Sales Volume (Units)

Sales Revenue-Total Variable Costs

Unit Sales Price-Variable Costs per Unit

Unit Sales Price-Variable Costs Per Unit/Unit Sales Price

Fixed Costs+Target Operating Income/Unit Contribution Margin

Contribution Margin

Sales Revenue-Total Variable Costs

Unit Contribution Margin

Unit Sales Price-Variable Costs per Unit

Give examples of Fixed and Variable cos…

What is the Contribution Margin (CM) fo…

What is the Unit Contribution Margin (U…

What is the Contribution Margin Ratio (…

Fixed Costs = R&D, plant depreciation, plant manager salary, a…

Contribution Margin Formula =... Revenue - Variable Costs

Unit Contribution Margin =... Selling Price per Unit - Variable…

Contribution Margin Ratio =... CM / Revenue or UCM / Price

Give examples of Fixed and Variable cos…

Fixed Costs = R&D, plant depreciation, plant manager salary, a…

What is the Contribution Margin (CM) fo…

Contribution Margin Formula =... Revenue - Variable Costs

Activity index

Break-even point

Contribution margin (CM)

Contribution margin ratio

The activity that causes changes in the behavior of costs.

The level of activity at which total revenues equal total cost…

The amount of revenue remaining after deucting variable costs.

the percentage of each dollar of sales that is available to ap…

Activity index

The activity that causes changes in the behavior of costs.

Break-even point

The level of activity at which total revenues equal total cost…

Contribution Margin

Contribution Margin Formula

CM per unit

CM ratio

The difference between total revenues and total variable costs…

Sales (per unit)... -All Variable Costs (per unit)... = Contribution…

The difference between the sales price per unit and total vari…

Percentage that gives the amount (in cents) of every sales dol…

Contribution Margin

The difference between total revenues and total variable costs…

Contribution Margin Formula

Sales (per unit)... -All Variable Costs (per unit)... = Contribution…

1. Know you cost behaviors (variable an…

2. What are mixed costs?

3. Know how to use the high-low method…

4. Know how to calculate the contributi…

Fixed Cost - total cost that remains the same regardless of th…

Mixed cost are mixtures of fixed cost and variable cost. Quest…

Find the high level of activity and low level of activity. Fin…

Contribution margin ratio = contribution margin ÷ sales revenu…

1. Know you cost behaviors (variable an…

Fixed Cost - total cost that remains the same regardless of th…

2. What are mixed costs?

Mixed cost are mixtures of fixed cost and variable cost. Quest…

Cost Volume Profit Analysis

Components of CVP Analysis

CVP assumptions

contribution margin ratio

-powerful tool that helps managers make important business dec…

CVP analysis relies on the interdependence of five components…

1. only a change in volume affects costs ... 2. managers can clas…

percentage of each sales dollar that is available for covering…

Cost Volume Profit Analysis

-powerful tool that helps managers make important business dec…

Components of CVP Analysis

CVP analysis relies on the interdependence of five components…

Cost Volume Profit (CVP) Analysis

Relevant Range of Operations

Fixed Costs

Variable Costs

Helps mangers predict how changes in costs and sales levels af…

The normal operating range for a business

Change in proportion to changes in the volume of activity

Change in Proportion to changes in the volume of activity

Cost Volume Profit (CVP) Analysis

Helps mangers predict how changes in costs and sales levels af…

Relevant Range of Operations

The normal operating range for a business

Variable cost

Fixed cost

Mixed cost

High low method

Cost that increases or decreases in total in direct proportion…

A cost that remains the same in total regardless of changes ov…

A cost that has both fixed and variable components

A method used to separate mixed costs into their into their va…

Variable cost

Cost that increases or decreases in total in direct proportion…

Fixed cost

A cost that remains the same in total regardless of changes ov…

Basic Formula

Incr. in NI

Breakeven in units

Impact on NI

Sales... - VC ... -------...

**CM**... - FC... -------...**NI**a) Sales - VC = CM... b) Sales incr x CM ratio = CM incr.... c) CM i…

a) Sales - VC = CM... b) CM / Sales units = CM per unit... c) FC / C…

a) CM x Sales incr = CM incr... b) CM incr - Ad cost = *impact on…

Basic Formula

Sales... - VC ... -------...

**CM**... - FC... -------...**NI**Incr. in NI

a) Sales - VC = CM... b) Sales incr x CM ratio = CM incr.... c) CM i…

Purpose of CVP Analysis

Contribution Margin

Break-Even Point

CVP Relationships in Equation Form

Estimate how profits are affected by: Selling prices, Sales Vo…

The amount remaining from sales revenue after variable expense…

The level of sales at which profit is zero

Profit = (Sales-Variable Expenses) - Fixed Expenses... Profit = U…

Purpose of CVP Analysis

Estimate how profits are affected by: Selling prices, Sales Vo…

Contribution Margin

The amount remaining from sales revenue after variable expense…

Activity index

Break-even point

Contribution margin (CM)

Contribution margin per unit

The activity that causes changes in the behavior of costs.

The level of activity at which total revenues equal total cost…

The amount of revenue remaining after deducting variable costs.

The amount of revenue remaining per unit after deducting varia…

Activity index

The activity that causes changes in the behavior of costs.

Break-even point

The level of activity at which total revenues equal total cost…

break even analysis

break even point

cost structure

cost volume profit analysis

a form of cost volume profit analysis that determines the leve…

point at which total revenue equals total cost, resulting in 0…

the extent to which a company uses variable costs versus fixed…

analysis that focuses on relationships among revenue, volume a…

break even analysis

a form of cost volume profit analysis that determines the leve…

break even point

point at which total revenue equals total cost, resulting in 0…

CVP analysis

Special format

CVP income statement

break even point in units

the study of the effects of changes in costs and volume on a c…

management often wants the information reported in a (blank) i…

(internal use only) costs and expenses classified as fixed or…

fixed costs divided by unit contribution margin

CVP analysis

the study of the effects of changes in costs and volume on a c…

Special format

management often wants the information reported in a (blank) i…

Activity index

Break-even point

Contribution margin (CM)

Contribution margin ratio

The activity that causes changes in the behavior of costs

The level of activity at which total revenue equals total costs

The amount of revenue remaining after deducting variable costs

The percentage of each dollar of sales that is available to ap…

Activity index

The activity that causes changes in the behavior of costs

Break-even point

The level of activity at which total revenue equals total costs

Breakeven Point

Contribution Margin

Contribution Margin Income Statement

Contribution Margin Per Unit

The sales level at which operating income is zero. Total reven…

Sales Revenue mine variable expenses

An income statement that groups costs by behavior rather than…

The excess of the unit sales price over the variable cost per…

Breakeven Point

The sales level at which operating income is zero. Total reven…

Contribution Margin

Sales Revenue mine variable expenses

Define total costs

Give examples of fixed costs

What are stepped fixed costs?

Define variable costs

Total Costs = Fixed Costs + Variable Costs

- Rent... - Insurance... - Cleaning Costs... - Staff Salaries

- These are fixed costs that reflect large changes in volume o…

Costs that are zero when output is zero... Examples (for a haird…

Define total costs

Total Costs = Fixed Costs + Variable Costs

Give examples of fixed costs

- Rent... - Insurance... - Cleaning Costs... - Staff Salaries

Cost-volume-profit analysis:

Marginal costing:

Marginal costing VS absorption costing:

Contribution (CPU),... Break even point (B…

The study of the relationship between costs and volume(level o…

- Is a decision making approach in which marginal costs are us…

MARGINAL... - divides costs into variable and fixed.... - costs are…

-CONTRIBUTION = Sales - Variable costs... This is the amount of m…

Cost-volume-profit analysis:

The study of the relationship between costs and volume(level o…

Marginal costing:

- Is a decision making approach in which marginal costs are us…

Contribution Margin

Unit Contribution Margin

Contribution Margin Ratio

Sales Volume (in units)

Sales Revenue - Total Variable Costs

Unit Sales Price - Variable Cost per Unit

Unit Sales Price - Variable Costs per Unit... -------------------…

Fixed Costs + Target Operating Income... ------------------------…

Contribution Margin

Sales Revenue - Total Variable Costs

Unit Contribution Margin

Unit Sales Price - Variable Cost per Unit

Break-Even Point 73

Choice Criterion 90

Contribution Income Statement 69

Contribution Margin 68

The quantity of output sold at which total revenues equal tota…

An objective that can be quantified, such as maximize income o…

Groups cost into variable costs and fixed costs to highlight c…

The Difference between total revenues and total variable costs

Break-Even Point 73

The quantity of output sold at which total revenues equal tota…

Choice Criterion 90

An objective that can be quantified, such as maximize income o…

CVP Analysis

Profit Equation

Total Revenue

Total Cost

Explores the relationship between revenue, cost, and volume an…

Operating Profit = Total Revenues - Total Cost

= Avg. Selling Price (P) x Units of output produced and sold (…

= [Variable Cost Per unit (V) x Units of output(X)] + Fixed co…

CVP Analysis

Explores the relationship between revenue, cost, and volume an…

Profit Equation

Operating Profit = Total Revenues - Total Cost

+ Management planning and control cycle

+ Production standards

+ Cost classification

+ Cost behaviour

- Planning ... - Managing } Decision making... - Controlling

The expected or allowed times and costs to make a product or p…

1. Cost behaviour... 2. Cost assignment... 3. Product costing... 4. Tim…

- Variable cost... - Fixed cost... - Mixed cost

+ Management planning and control cycle

- Planning ... - Managing } Decision making... - Controlling

+ Production standards

The expected or allowed times and costs to make a product or p…