Shared Flashcard Set

Details

ACC 222
Exam 1 Equations
23
Accounting
Undergraduate 3
09/27/2010

Additional Accounting Flashcards

 


 

Cards

Term
Total Product Cost
Definition
DM+DL+MOH
Term
Unit Product Cost
Definition

Total Product Cost


# of units

 

 

Term
Prime Cost
Definition
DM+DL
Term
Conversion Cost
Definition
DL+MOH
Term
Direct Materials Used in Production
Definition
Beg. inventory + Purchased - Ending Inventory
Term
Cost of Goods Manufactured
Definition
DM+DL+MOH-Ending WIP inventory
Term
Cost of Goods Sold
Definition

Beg. finished goods inventory

+

Cost of goos manufactured

-

Ending finished goods inventory

Term
Cost Formula
Definition
Total Fixed Cost + (VR x units of output)
Term
Total Variable Cost
Definition
VR x units of output
Term
High-Low Method
Definition

  1. Find high & low points
    • activity levels
  2. Calculate variable rate
  3. Calculate fixed cost
  4. Form Cost formula

Term

Variable Rate for

 

High-Low Method

Definition

High Cost - Low Cost


High Output- Low Output

Term

Fixed Cost for

 

High-Low Method

Definition

Total cost at high point - (VR x output at high point)

 

OR

 

Total cost at low point - (VR x output at low point)

Term

Cost Formula for

 

High-Low Method

Definition

 

fixed cost + (VR x # of moves)

 

 

*for the month

Term
Sales Revenue
Definition
price x units sold
Term
Operating Income
Definition

(Price x units sold)   (sales revenue)

-

(Unit Variable Cost x units sold)(Total Variable Cost)

-

Fixed Cost

Term

Break-Even Point 

 

(in units)

Definition

Fixed Cost


(Price - Unit Variable Cost)

Term
Contribution Margin Ratio
Definition

Total Contribution Margin


Sales

 

OR

 

(Price-Unit Variable Cost)


Price

Term
Variable Cost Ratio
Definition

Total Variable Cost


Sales

 

OR

 

Unit Variable Cost


Price

Term

Break-Even Point

 

(in Sales Dollars)

Definition

Fixed Cost


Contribution Margin Ratio

 

OR

 

Fixed Cost


(1-Variable Cost Ratio)

Term
Margin of Safety
Definition
Sales - Break-even sales
Term

Degree of Operating Leverage

(DOL)

Definition

Total Contribution Margin


Operating Income

Term

% Change in Profits

 

Definition
DOL x % change in sales
Term
Variable Cost per Unit
Definition
Total Costs per Unit - Fixed Costs per Unit
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