Ch5 Flashcards
Can be fixed, variable or mixed. Is determined by how the cost reacts to changes in the production volume
Cost behavior
Cost will not change in a total with changes in production volume
fixed cost
fixed cost
Discretionary and committed
Management can discontinue at any time
‘Discretionary
Contract jewel
Committed
Cost will change the total in direct relation to changes in the production volume
Variable cost
Cost have both fixed and variable components therefore they change in total with production volume changes but not at a set rate
Mixed cost
Helps predict future cost by separating mix cost in two fixed and variable components
High/low Method
The margin of safety percentage is the margin of safety in dollars divided by breakeven sales in dollars
True or false
False
Break even point is the point at which profit equals zero
True or false 
True
Direct materials
Absorption costing
Product cost or Period Cost
Product Cost
Direct labor
Absorption costing
Product cost or Period Cost
Product Cost
Variable manufacturing overhead
Absorption costing
Product cost or Period Cost
Product Cost
Fixed manufracturing overhead
Absorption costing
Product cost or Period Cost
Product cost
Variable selling and administrative costs
Absorption costing
Product cost or Period Cost
Period Cost
