Chapter 7 Flashcards
what affects variable costing income?
change in unit sales
what affects full costing income
change in units produced
what is a traceable fixed cost
a cost that can be directly traced to a segment
what is a common fixed cost
a cost that cannot be directly traced to a segment
what is the segment margin
a gauge of segment profitability
difference in operating income between variable and full costing
change in level of units * fixed MOH cost per unit
ending units formula
beginning units + units produced - units sold = ending units
unit product cost (variable)
variable manufacturing cost * fixed MOH per unit
unit product cost (full)
what type of costing is required by GAAP
full/absorption
inventory costs include:
DM, DL and MOH
what kind of costing is used for internal decision making
variable
fixed MOH formula
total fixed MOH / units produced
cost of ending inventory through full costing
(variable cost per unit + fixed cost per unit) * ending inventory
cost of ending inventory through variable costing
variable cost per unit * ending inventory
