MA/CVP Flashcards
1
Q
Prime cost =
A
total direct cost
2
Q
Total manufacturing cost =
A
prime + manufacturing overhead
3
Q
Overhead =
A
Costs that can’t be traced to a specific level of output
4
Q
Fixed Costs =
A
Costs that stay the same - decrease with increasing level of activity
5
Q
Breakeven =
A
Total fixed expense/ contribution per unit
6
Q
Profit =
A
(CS ratio x sales) - Fixed
7
Q
Required Sales =
A
(Target Profit + Fixed) / CM Ratio
8
Q
Margin of Safety =
A
(Required Sales - Breakeven)/ Required Sales
