Cost Behaviours Formulas Flashcards
1
Q
Gross profit?
A
sales revenue - manufacturing costs
2
Q
Contribution?
A
sales revenue - variable costs
3
Q
Manufacturing costs?
A
direct materials costs + direct labour cost + manufacturing overhead
4
Q
Prime cost?
A
direct materials cost + direct labour cost
5
Q
Conversion cost?
A
direct labour cost + manufacturing overhead
6
Q
Total cost?
A
Fixed cost + (variable costs x unit of activity)
