D253 Flashcards
common cost
type of indirect cost can not be traced individually
Non manufacturing costs what are they
selling administrative
manufacturing costs
Direct materials and Direct labor(prime), manufacturing overhead
Conversion
Manufacting overhead + DL
Manufacturing overhead
direct materials/direct labor
Variable costs
Changes based on change in activity level
CGS formula
BI +P - Ending inv
Opurtunity vs sunk cost
opportunity selecting one cost over another sunk -cant be changed
Job vs process costing
Job unique, process the same
job costs for factory
DM + DL +MO
predetermined over head rate(POHR)
estimated MOH/estimated hours
absorption costing
all manufacturing costs
Break even
fixed expenses/cm per unit
cm ratio
unit contribution margin/unit selling price
per unit break even
fixed/(sales-variable)
sales to obtain target profit unit + $
target profit+ fixed expense/unit cm(just times by dollar)
margin of safety
total sales - break even
Operating income
contirbution margin/net income
over
debit moh, credit cgs, debit net income
applied manufacturing overhead rate
predetermined overhead rate * allocation base(labor or machine hours)
