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A324 Quiz 1 Equations
Equations from the book
23
Accounting
Undergraduate 4
11/03/2014

Additional Accounting Flashcards

 


 

Cards

Term
Operating Income
Definition
Revenues - COGS - Period Costs (EBIT)
Term
Prime Costs
Definition
Direct materials costs + Direct manufacturing labor costs
Term
Conversion Costs
Definition
Direct manufacturing labor costs + Manufacturing overhead costs
Term
Contribution Margin
Definition
Revenues – Variable Costs
Term
Contribution Margin per unit
Definition
Selling price - Variable cost per unit
Term
Contribution Margin Percentage
Definition
Contribution margin per unit / Selling Price
Term
Breakeven Number of Units
Definition
Fixed costs / Contribution margin per unit
Term
Breakeven Revenues
Definition
Fixed costs / Contribution margin %
Term
Quantity of Units Required to be sold
Definition
(Fixed costs + Target operating income) / (Contribution margin per unit)
Term
Net Income
Definition
Operating income - Income taxes
Term
Target Net Income
Definition
(Target operating income) * (1 - Tax rate)
Term
Target Operating Income
Definition
Target net income / (1 - Tax rate)
Term
Margin of Safety (revenues)
Definition
Target sales - Breakeven Sales
Term
Margin of Safety (units)
Definition
Budgeted (or actual) sales quantity - Breakeven quantity
Term
Margin of Safety Percentage
Definition
Margin of safety in dollars / Budgeted (or actual) revenues
Term
Degree of Operating Leverage
Definition
Contribution margin / Operating income
Term
Breakeven point in bundles
Definition
Fixed costs / Contribution margin per bundle
Term
Contribution margin of the bundle
Definition
Contribution margin of the bundle / Revenue of the bundle
Term
Budgeting Manufacturing Overhead Rate
Definition
Budgeted Manufacturing Overhead Costs / Budgeted Total Quantity of Cost-Allocation Base
Term
Budgeted-Indirect cost rate
Definition
Budgeted annual indirect cost/(divided by) budgeted annual quantity of the cost allocation base
Term
Equivalent Units
Definition
Costs of inputs ÷ quantity of output
Term
Price Variance
Definition
(Actual price of input - Budgeted price of input) x Actual Quantity of output
Term
Efficiency Variance
Definition
(Actual quantity of input used - Budgeted quantity of input allowed for actual output) x Budgeted price of input
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