Marginal Costing Flashcards
1
Q
Contribution Definition
A
The amount left from revenue after all variable costs have been deducted.
This contributes to fixed costs and then profit.
2
Q
Break even output formula
A
Total fixed costs / (Selling price - Varibale costs)
3
Q
Break even revenue formula
A
Break even output X Selling Price
4
Q
Contribution to Sales ratio
A
Total Contributuon / Sales
5
Q
Units at Desired Profit
Break Even Revenue formula
A
Total Fixed Costs / CS ratio
6
Q
Marginal Cost Table
A
\+SP (VC) =Contribution (FC) =Profit
7
Q
Optimum Production Plan
A
\+SP (VC) =Contribution p.u. Limiting Factor p.u. Contribution p.u of limiting factor Rank
