Chapter 20 Flashcards
Net income
Revenues - costs
Total manufacturing costs
Direct materials + direct labor + variable manufacturing overhead + fixed manufacturing overhead
Total cost per unit
Total manufacturing costs / annual costs in producing ____
Total annual cost
MAKE
Direct materials + direct labor + variable manufacturing costs + fixed manufacturing costs
BUY
Fixed manufacturing costs + purchase price (annual costs in producing ___ x ___ per unit)
Opportunity costs
Total costs
MAKE
Totals annual costs + opportunity cost
BUY
Total annual cost
Single product case
Manufacturing cost per unit
Direct materials + direct labor + variable manufacturing overhead + fixed manufacturing overhead
Net income per unit
Sales price per unit - manufacturing costs per unit
Multiple product case
SELL or PROCESS FURTHER
Sales per day - cost per day to process __
