M3 Flashcards
1
Q
What is controllable margin and where is used?
A
Contribution margin (Selling price less cost) less “controllable” fixed cost.
Controllable margin is used in a contribution report, a part of financial score card
2
Q
BEP in unit
A
BET in unit = total FC / VC in unit
3
Q
BEP in dollar
A
unit price (sales price) times BEP in unit