Week 1 Flashcards
1
Q
Contribution Margin
A
- selling price less variable costs
- can be shown as % by taking CM / selling price
2
Q
break even point
A
- units: fixed costs / CM per unit
- dollars: fixed costs / CM %
3
Q
target profit
A
- units: (fixed costs + profit) / cm per unit
- dollars: (fixed costs + profit) / CM %
4
Q
product costs
A
- costs associated with the purchase or production of a product
- direct materials
- direct labour
- MFG overhead
- AKA prime costs / conversion costs
5
Q
period costs
A
- anything that is not a product cost
- selling and admin costs
6
Q
vision statements
A
describe where the organization is going
7
Q
mission statements
A
describe the companies strategic direction
8
Q
values statements
A
describes core beliefs, principles, and philosophies of the culture, both internally and externally
