Chapter 23 Flashcards
1
Q
Flexible budget
A
Budgeted production in units
Budgeted costs
Indirect materials
Indirect labor
Utilities
Depreciation
Property taxes +
= Supervision
2
Q
Total budgeted costs
A
Fixed cost + variable costs
3
Q
Return on investment (ROI)
A
Controllable Margin / Average Operating Assets
4
Q
Improving ROI
A
Sales
Variable costs -
Contribution margin
Controllable fixed costs -
Controllable Martin (a)
A barrage operating assets (b)
Return on investment (a) / (b)
5
Q
Residual income
A
Controllable margin - minimum rate of return x average operating assets
