Management Accounting Flashcards
What is the basis of apportionment for Rent, Rates?
floor space
What is the basis of apportionment for heating and lighting?
floor space
What is the basis of apportionment for buildings insurance?
floor space
What is the basis of apportionment for buildings depreciation?
floor space
What is the basis of apportionment for machinery insurance?
cost or value or machinery and equipment
What is the basis of apportionment for machinery depreciation?
value of machinery; or machine usage (hours)
What is the basis of apportionment for canteen?
number of employees in each centre
What is the basis of apportionment for supervisory costs?
number of employees in each centre, or labour hours worked by supervisors in each centre
How do you work our the overhead absorption rate?
total cost centre overheads / total chargeable hours (in cost centre) = cost per hour of chargeable time
What is the equation for contribution per unit?
selling price per unit - variable cost per unit
What is the equation for cost per unit?
total costs / number of units
What is the equation for the high low method?
high cost - low cost / high output - low output
What is the equation for break even - units?
total fixed costs / contribution per unit
What is the equation for break even - sales revenue?
total fixed costs/ contribution per unit * selling price
What is the equation for margin of safety - percentage?
(current output-B/E output / current output) * 100
