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Study sets matching "cost accounting volume profit"

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Study sets matching "cost accounting volume profit"

12 terms
Cost Accounting Chapter 2 - Cost-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 cha…
Total Revenue - Variable Costs
Selling price per unit - Variable cost per unit
Percentage by which the selling price (or revenue) per unit e…
Cost-Volume-Profit Analysis (CVP)
Technique that examines changes in profits in response to cha…
Contribution Margin
Total Revenue - Variable Costs
Accounting Cost-Volume Profit Formulas
CM Format - Totals
CM Format - Units
CM Ratio
CM in $
Sales - VC = CM - FC = P/L
SP per unit - VC per unit = CM per unit
CM/Sales
Sales - VC
CM Format - Totals
Sales - VC = CM - FC = P/L
CM Format - Units
SP per unit - VC per unit = CM per unit
8 terms
Accounting Cost-Volume-Profit Relationships
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
32 terms
Accounting Chapter 19 Cost-Volume-Profit
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 cos…
The amount of revenue remaining after deucting variable costs.
the percentage of each dollar of sales that is available to a…
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 cos…
18 terms
Cost Accounting - Cost-Volume-Profit Analysis
Give examples of Fixed and Variable co…
What is the Contribution Margin (CM) f…
What is the Unit Contribution Margin (…
What is the Contribution Margin Ratio…
Fixed Costs = R&D, plant depreciation, plant manager salary,…
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 co…
Fixed Costs = R&D, plant depreciation, plant manager salary,…
What is the Contribution Margin (CM) f…
Contribution Margin Formula =... Revenue - Variable Costs
18 terms
ACCOUNTING FINAL - Cost-Volume-Profit Analysis
break-even point
common fixed expense
contribution margin
contribution margin income statement
The break-even point is the point where total revenue equals…
are the fixed costs that are not traceable to the segments an…
is the difference between sales and variable expense. It is t…
Sale... (Total variable cost)(variable selling and administrativ…
break-even point
The break-even point is the point where total revenue equals…
common fixed expense
are the fixed costs that are not traceable to the segments an…
24 terms
Accounting Chapter 21: Cost Volume Profit Analysis
Cost Volume Profit (CVP) Analysis
Relevant Range of Operations
Fixed Costs
Variable Costs
Helps mangers predict how changes in costs and sales levels a…
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 a…
Relevant Range of Operations
The normal operating range for a business
19 terms
Accounting Chapter 7 Cost Volume Profit Analysis
Cost Volume Profit Analysis
Components of CVP Analysis
CVP assumptions
contribution margin ratio
-powerful tool that helps managers make important business de…
CVP analysis relies on the interdependence of five components…
1. only a change in volume affects costs ... 2. managers can cla…
percentage of each sales dollar that is available for coverin…
Cost Volume Profit Analysis
-powerful tool that helps managers make important business de…
Components of CVP Analysis
CVP analysis relies on the interdependence of five components…
17 terms
Managerial Accounting: Cost-Volume-Profit Relationships
Purpose of CVP Analysis
Contribution Margin
Break-Even Point
CVP Relationships in Equation Form
Estimate how profits are affected by: Selling prices, Sales V…
The amount remaining from sales revenue after variable expens…
The level of sales at which profit is zero
Profit = (Sales-Variable Expenses) - Fixed Expenses... Profit =…
Purpose of CVP Analysis
Estimate how profits are affected by: Selling prices, Sales V…
Contribution Margin
The amount remaining from sales revenue after variable expens…
16 terms
Accounting - Chapter 7 : Cost-volume-profit analysis
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…
Costs that are zero when output is zero... Examples (for a hair…
Define total costs
Total Costs = Fixed Costs + Variable Costs
Give examples of fixed costs
- Rent... - Insurance... - Cleaning Costs... - Staff Salaries
17 terms
Accounting 2020: cost-volume-profit analysis
Variable cost
Fixed cost
Mixed cost
High low method
Cost that increases or decreases in total in direct proportio…
A cost that remains the same in total regardless of changes o…
A cost that has both fixed and variable components
A method used to separate mixed costs into their into their v…
Variable cost
Cost that increases or decreases in total in direct proportio…
Fixed cost
A cost that remains the same in total regardless of changes o…
5 terms
Management Accounting 7: Cost-Volume-Profit Anaylsis
Cost-volume-profit analysis:
Marginal costing:
Marginal costing VS absorption costing:
Contribution (CPU),... Break even point (…
The study of the relationship between costs and volume(level…
- Is a decision making approach in which marginal costs are u…
MARGINAL... - divides costs into variable and fixed.... - costs are…
-CONTRIBUTION = Sales - Variable costs... This is the amount of…
Cost-volume-profit analysis:
The study of the relationship between costs and volume(level…
Marginal costing:
- Is a decision making approach in which marginal costs are u…
20 terms
12 - Managerial accounting and cost-volume-profit relationships
+ 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…
1. Cost behaviour... 2. Cost assignment... 3. Product costing... 4. Ti…
- 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…
16 terms
Accounting Chapter 18 - Cost Volume Profit
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 cos…
The amount of revenue remaining after deducting variable costs.
The amount of revenue remaining per unit after deducting vari…
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 cos…
12 terms
Accounting Chap 7 Cost Volume Profit Analysis
Breakeven Point
Contribution Margin
Contribution Margin Income Statement
Contribution Margin Per Unit
The sales level at which operating income is zero. Total reve…
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 reve…
Contribution Margin
Sales Revenue mine variable expenses
27 terms
Accounting Ch. 5 Cost-Volume-Profit
Profit 1
Profit 2
Profit 3
Profit 4
Contribution margin - fixed expenses
(Sales - Variable expenses) - Fixed expenses
Q x (P - V) - Fixed expenses
Q x Unit CM - Fixed expenses
Profit 1
Contribution margin - fixed expenses
Profit 2
(Sales - Variable expenses) - Fixed expenses
18 terms
ACCOUNTING FINAL - Cost-Volume-Profit Analysis
break-even point
common fixed expense
contribution margin
contribution margin income statement
The break-even point is the point where total revenue equals…
are the fixed costs that are not traceable to the segments an…
is the difference between sales and variable expense. It is t…
Sale... (Total variable cost)(variable selling and administrativ…
break-even point
The break-even point is the point where total revenue equals…
common fixed expense
are the fixed costs that are not traceable to the segments an…
8 terms
Accounting 204 Cost-Volume-Profit Math Relationships
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
20 terms
Cost Accounting Chapter 3: Cost-Volume-Profit Analysis
Breakeven point (BEP)
Capital intensive companies
Contribution statement of comprehensiv…
Contribution margin (CM)
Quantity of output at which total revenues and total costs ar…
Companies with a high percentage of fixed costs in their cost…
Income statement that groups line items by cost-behaviour pat…
Revenues minus all costs of the output that vary with respect…
Breakeven point (BEP)
Quantity of output at which total revenues and total costs ar…
Capital intensive companies
Companies with a high percentage of fixed costs in their cost…
25 terms
Cost Accounting Chapter 3 Cost Volume Profit Analysis
Break-Even Point 73
Choice Criterion 90
Contribution Income Statement 69
Contribution Margin 68
The quantity of output sold at which total revenues equal tot…
An objective that can be quantified, such as maximize income…
Groups cost into variable costs and fixed costs to highlight…
The Difference between total revenues and total variable costs
Break-Even Point 73
The quantity of output sold at which total revenues equal tot…
Choice Criterion 90
An objective that can be quantified, such as maximize income…
15 terms
Cost Accounting; Fundamentals of Cost-Volume-Profit Analysis: Chapter 3
CVP Analysis
Profit Equation
Total Revenue
Total Cost
Explores the relationship between revenue, cost, and volume a…
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 c…
CVP Analysis
Explores the relationship between revenue, cost, and volume a…
Profit Equation
Operating Profit = Total Revenues - Total Cost
18 terms
Principles of Accounting: Cost Behavior and Cost-Volume-Profit Analysis
Cost Behavior
Activity Base
Relevant Range
Variable Costs
The manner in which a cost changes as a related activity chan…
The activity that causes the cost to change
The range of activity over which the changes in the cost are…
Costs that vary in proportion to changes in the activity base
Cost Behavior
The manner in which a cost changes as a related activity chan…
Activity Base
The activity that causes the cost to change
19 terms
Accounting Chapter 19 - Cost Behavior and Cost-Volume-Profit Analysis
Costs that vary in total in direct pro…
Which of the following is not an examp…
Which of the following costs is an exa…
Use the following information to deter…
variable... Feedback: Variable costs remain constant per unit b…
supervisor salary... Feedback: Supervisor salary is a fixed cos…
factory rent... Feedback: Factory rent does not change based on…
$8.50... Feedback: Variable cost per unit is calculated as tota…
Costs that vary in total in direct pro…
variable... Feedback: Variable costs remain constant per unit b…
Which of the following is not an examp…
supervisor salary... Feedback: Supervisor salary is a fixed cos…
10 terms
Cost volume profit analysis
Break-even units
Break-even Dollars
Contribution margin ratio
Break-even point
Fixed costs/Contribution margin per unit
Fixed costs/Contribution margin ratio
Percent left from sales after direct costs deducted
The level of sales at which the contribution margin just cove…
Break-even units
Fixed costs/Contribution margin per unit
Break-even Dollars
Fixed costs/Contribution margin ratio
19 terms
Cost volume profit analysis
The amount left from each sale after v…
The minimum quantity of sales which an…
Total revenue -total variable cost or…
total revenue -variable costs - fixed…
Contribution Margin
Breakeven
Total contribution margin formula
Profit formula
The amount left from each sale after v…
Contribution Margin
The minimum quantity of sales which an…
Breakeven
22 terms
Managerial Accounting Chapter 4 (Cost Volume Profit Analysis)
Cost Value Analysis
Break Even Point
Contribution Margin income statement
Contribution Margin
Estimates how changes in costs , sales volume , and price aff…
The Point where total revenue equals total cost. ... Total fixed…
The income statement format that is based on the separation o…
The difference between sales and variable expense. ... sales - t…
Cost Value Analysis
Estimates how changes in costs , sales volume , and price aff…
Break Even Point
The Point where total revenue equals total cost. ... Total fixed…
10 terms
Managerial Accounting Ch 5:Cost-Volume-Profit Relationships
Break-Even Point
Contribution margin ration (CM ratio)
Cost-Volume-Profit (CVP) graph
Degree of Operating Leverage
The level of sales at which profit is zero
A ratio computed by dividing contribution margin by dollar sa…
A graphical representation of the relationships between an or…
A measure, at a given level of sales, of how a percentage cha…
Break-Even Point
The level of sales at which profit is zero
Contribution margin ration (CM ratio)
A ratio computed by dividing contribution margin by dollar sa…
11 terms
Cost-Volume-Profit Relationships
Contribution Margin (CM) is
The contribution margin ratio is
At the break-even point
Profits =
- the amount remaining from sales revenue after variable expe…
we can use the below formula on the base of total or unit.…
profits equal zero.
Sales - (Variable expenses + Fixed expenses)
Contribution Margin (CM) is
- the amount remaining from sales revenue after variable expe…
The contribution margin ratio is
we can use the below formula on the base of total or unit.…
10 terms
Cost Volume Profit (CVP)
Fixed cost
Unit sold
Selling price
Variable cost
Selling price - variable cost
(Fixed cost / selling price) - variable cost
(fixed cost / unit sold) + variable cost
Selling price - (fixed cost / unit sold)
Fixed cost
Selling price - variable cost
Unit sold
(Fixed cost / selling price) - variable cost
10 terms
BU 6033: Accounting for Executives - Chapter 09: Cost-Volume-Profit Analysis
Cost-volume-profit (CVP) analysis
Operating profit
Contribution margin
Contribution margin ratio (CMR)
method for analyzing how various operating and marketing deci…
Sales - Total Cost... Sales - VC - FC... (Units sold x selling pr…
per unit (UCM) = p - v (price - VC/unit)... total (TCM) = (p -…
(p - v)/p (unit contribution margin/unit price)... bigger is be…
Cost-volume-profit (CVP) analysis
method for analyzing how various operating and marketing deci…
Operating profit
Sales - Total Cost... Sales - VC - FC... (Units sold x selling pr…
82 terms
Cost-Profit-Volume Relationships
Company A sells its product for $10 pe…
Company A has sales of $500,000, varia…
CVP is the acronym for ________ - ____…
Place the following items in the order…
40,000 units and $400,000... $200,000/5 = 40,000... 40,000 x $10…
Company A's contribution margin equals the fixed costs.... Comp…
cost, volume, profit
Variable Costs... Fixed Expenses... Net Income
Company A sells its product for $10 pe…
40,000 units and $400,000... $200,000/5 = 40,000... 40,000 x $10…
Company A has sales of $500,000, varia…
Company A's contribution margin equals the fixed costs.... Comp…
16 terms
Cost-Volume-Profit
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 cos…
The amount of revenue remaining after deducting variable costs.
The amount of revenue remaining per unit after deducting vari…
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 cos…
28 terms
Cost-Volume Profit
Cost-Volume Profit (CVP) analysis
The Four elements of CVP
CVP analysis is used in these business…
Basic elements of a CVP analysis:
*is one of the most powerful tools that managers have at thei…
1. Prices of products... 2. Volume or level of activity... 3. Per u…
1. Deciding what products and services to offer.... 2. Determini…
1. Break-Even calculations... 2. Target Profit analysis... 3. Margi…
Cost-Volume Profit (CVP) analysis
*is one of the most powerful tools that managers have at thei…
The Four elements of CVP
1. Prices of products... 2. Volume or level of activity... 3. Per u…
50 terms
Cost-Volume-Profit Analysis
Summary of Important Equations
Sales revenue
Operating income
Break-even point in units
1. Sales revenue ... 2. Operating income... 3. Break-even point in…
Price × Units sold
(Price × Units) - (Unit variable cost × Units) - Fixed cost
Fixed cost/(Price - Unit variable cost)
Summary of Important Equations
1. Sales revenue ... 2. Operating income... 3. Break-even point in…
Sales revenue
Price × Units sold
10 terms
Cost Volume Profit Analysis
Variable Costs
Fixed Costs
Mixed Costs
High Low Method
Remain constant per unit but changes in total proportionally…
Remain constant in total but per unit, they are inversely rel…
Contain components of fixed costs and variable costs.
A way of separating mixed costs into variable and fixed compo…
Variable Costs
Remain constant per unit but changes in total proportionally…
Fixed Costs
Remain constant in total but per unit, they are inversely rel…
18 terms
Cost-Volume-Profit Analysis
break-even point
common fixed expense
contribution margin
contribution margin income statement
The break-even point is the point where total revenue equals…
are the fixed costs that are not traceable to the segments an…
is the difference between sales and variable expense. It is t…
Sale... (Total variable cost)(variable selling and administrativ…
break-even point
The break-even point is the point where total revenue equals…
common fixed expense
are the fixed costs that are not traceable to the segments an…
10 terms
Cost-Volume-Profit
Profit
Break-even point
contribution margin ratio
change in profit
(p-v)q - F
q*= F/(p-v)
contribution margin/sales
(p2q2- v2q2) - (p1q1 - v1q1) - (F2-F1)
Profit
(p-v)q - F
Break-even point
q*= F/(p-v)
10 terms
Cost-Volume-Profit-Relationship Managerial Accounting Chapter 5
Contributional Margin
Cost-Volume-Profit Relationship in Equ…
Contribution Margin Ratio
Change in Contribution Margin
is a product's price minus all associated variable costs, res…
Profit= (Sales-Variable Expenses) - Fixed Expenses... Broken Dow…
CM Ratio = Contribution Margin/Sales
Change in Contribution Margin = CM Ratio * Change in Sales
Contributional Margin
is a product's price minus all associated variable costs, res…
Cost-Volume-Profit Relationship in Equ…
Profit= (Sales-Variable Expenses) - Fixed Expenses... Broken Dow…
16 terms
Cost Volume Profit Analysis
Contribution Margin
Contribution Margin Per Unit
Contribution Margin Ratio
Break even sales dollars
Sales less variable costs
Selling price less variable cost per unit
Contribution margin/sales
Fixed costs/contribution margin ratio
Contribution Margin
Sales less variable costs
Contribution Margin Per Unit
Selling price less variable cost per unit
10 terms
Managerial Accounting 2020 Chapter 7 Cost-Volume-Profit Analysis
Contribution margin less fixed costs y…
All else being equal, a company with a…
The contribution margin ratio explains…
LaComedia Dinner Theater sells tickets…
c) operating income
a) relatively high variable costs.
c) contributes towards fixed costs and generating a profit.
c) 35%
Contribution margin less fixed costs y…
c) operating income
All else being equal, a company with a…
a) relatively high variable costs.
16 terms
Managerial Accounting Chapter 6: Cost-Volume-Profit Analysis
Cost-Volume-Profit (CVP) Analysis
Assumptions Made Under CVP
Gross Profit
Contribution Margin Per Unit
A tool that focuses on the relationships among a company's pr…
1. Selling price is constant throughout the entire "relevant…
Sales - Cost of Goods Sold (COGS)
The sales price per unit of product, less all variable costs…
Cost-Volume-Profit (CVP) Analysis
A tool that focuses on the relationships among a company's pr…
Assumptions Made Under CVP
1. Selling price is constant throughout the entire "relevant…
16 terms
Cost-Volume Profit
activity index
break even point
contribution margin
contribution 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 a…
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
12 terms
Cost Volume Profit analysis
write out
write out
AVC*Q
draw graph
Purposes of costing?
Classification of costs?
Variable cost formula and graph? Graphs when Eos and Deos.
Fixed costs, Stepped fixed costs definition and graph?
write out
Purposes of costing?
write out
Classification of costs?
8 terms
Cost Volume Profit Analysis
Breakeven Formula
Contribution Margin
Contribution margin per Unit
Breakeven Point in Units
Quantity = FC / (price per unit - VC per unit)
Sales Revenue - Variable Costs
Sales Price per Unit - Variable Cost per Unit
Fixed Costs / Contribution Margin per Unit
Breakeven Formula
Quantity = FC / (price per unit - VC per unit)
Contribution Margin
Sales Revenue - Variable Costs
14 terms
Cost Volume Profit Formulas
Profit
Contribution Margin
Contribution Margin Ratio
Profit (No per unit data)
(Sales-Variable Expenses) - Fixed Expenses... (Unit CM * Quantit…
Sales Revenue - Variable Expenses
Contribution Margin/Sales
(CM Ratio * Sales) - Fixed Expenses
Profit
(Sales-Variable Expenses) - Fixed Expenses... (Unit CM * Quantit…
Contribution Margin
Sales Revenue - Variable Expenses
13 terms
LS - Cost-Volume-Profit
Contribution Margin
The break-even point is the level of s…
The CVP (cost-volume-profit) analysis…
The variable expense ration is the rat…
Price - Variable costs
0
- selling prices... - sales volume... -unit variable costs... -total f…
sales
Contribution Margin
Price - Variable costs
The break-even point is the level of s…
0
23 terms
Cost-Volume-Profit
Cost-Volume-Profit analysis
CVP vital in decisions like...
Basic elements of CVP analysis
total contribution margin
one of the most powerful tools that managers have at their di…
1. deciding what products and services to offer... 2. determinin…
1. Break-even calculations ... 2. target profit analysis... 3. marg…
= Sales Revenue - Variable Costs
Cost-Volume-Profit analysis
one of the most powerful tools that managers have at their di…
CVP vital in decisions like...
1. deciding what products and services to offer... 2. determinin…
8 terms
Cost-Volume Profit Analysis
pi = profit =
q*
CM ratio
change in pi
pq - vq - F
F / P-V
contribution margin / sales ... = (P-V)q/pq ... = 1 - (v/q)
(p2q2 - v2q2) - (p1q1 - v1q1) - (F2-F1)
pi = profit =
pq - vq - F
q*
F / P-V
8 terms
Cost-Volume-Profit Analysis
Contribution Margin Ratio
Contribution Margin
Unit Contribution Margin
Break-Even Sales (units)
Contribution Margin... ---------------------------------... Sales
Sales - Variable Costs
Sales price per unit - Variable Cost per unit
Fixed Costs... -----------------------------------... Unit Contribu…
Contribution Margin Ratio
Contribution Margin... ---------------------------------... Sales
Contribution Margin
Sales - Variable Costs
35 terms
Fundamental Accounting Principles Ch. 21 Cost-Volume-Profit Analysis
Absorption costing
Break-even point
Composite unit
Contribution margin per unit
Costing method that assigns both variable and fixed costs to…
The sales level at which a company neither earns an income no…
Generic unit consisting of a specific number of units of each…
The amount by which a product's unit selling price exceeds it…
Absorption costing
Costing method that assigns both variable and fixed costs to…
Break-even point
The sales level at which a company neither earns an income no…
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