Manganent Accouting Level 5

Question 1

Breakeven point in units

Answer 1

Fixed cost / contribution

Question 2

Level of activity to earn a required profit

Answer 2

Required profit + fixed costs
——————————————
Contribute per unit

Question 3

Margin of safety

Answer 3

Budgeted level - Breakeven level of activity

Question 4

Margin of safety %

Answer 4

Budgeted sales - Breakeven sales
———————————————— x100
Budgeted sales

Question 5

C/s ratio

Answer 5

Contribution / sales

Question 6

Breakeven point in sales revenue

Answer 6

Fixed cost
—————-
C/s ratio

Question 7

Sales revenue that is required to generate profit

Answer 7

Required profit + fixed costs
——————————————
C/s ratio

Question 8

Weighted average c/s ratio

Answer 8

Total contribution
—————————
Total revenue

Question 9

T4 is what is traditional costing

Answer 9

Spreading costing between Fc and Vc

Question 10

T4 example of traditional costing

Answer 10

Marginal and absorption

Question 11

T4 what’s Marginal costing and example

Answer 11

Spreads variable costs only
E.g Material and Labour

Question 12

T4 standard costing is … and why

Answer 12

Actual VS Budget

Helps set costs
Helps improve costs
E. Idle , normal and expected

Question 13

T4 What are some questions you might be asked about MARGINAL COSTING

Answer 13

Breakeven
Profitablilty
Contribution

Question 14

T4 what are some questions you might be asked about ABSOPTION COSTING

Answer 14

Split units of production costs of overheads between product costs

And

Profit per unit

Question 15

T4 split units of production costs of overheads between products costs

Answer 15

Step 1
Either M or L between products (which ever ones higher )

Step 2 OAR = production overhead
——————————————————-
(DM or DL per unit x product unit 1)+(same or product 2 )

Step 3 per machine or per labour
Per hour

Finish