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Cost
idk
23
Accounting
Undergraduate 1
04/09/2014

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Cards

Term
one time only special orders should only be accepted if
Definition
incremental revenues exceed incremental costs
Term
full cost of the product is
Definition
the sum of all variable and fixes costs in all the business functions of the value chain
Term
how do you find the contribution margin
Definition
sales-variable costs
Term
how do you find the operating income
Definition
sales-variable costs - fixed costs
Term
the best way to avoid mis-indentification
Definition
expected future costs that differ among the alternatives
Term
three major influences on pricing decisions are
Definition
competition costs and customers
Term
all of the following are associated with target costing execpt
Definition
the mark up componet
Term
all costs incurred beyond the splitoff point that are assignable to one or more individual products are called
Definition
separable costs
Term
the focus of joint costing is on allocating costs to individual products
Definition
at the splitoff point
Term
byproducts and main products are differentiated by the
Definition
amount of sales value per unit
Term
which of the following is not a primary reason for allocating joint costs
Definition
to calculate the bonus of the chief executive officer.
Term
which of the following is not a market based approach to allocating costs
Definition
physical measure
Term
which cost allocation method should not be used to eliminate the conflict between decision making and performance
Definition
physical measures
Term
which method of accounting recognizes by products in the financial statements at the time their production is completed
Definition
production methos
Term
which of the following is not a reason to use the sales value at split off method
Definition
simplicity
measurement of the value of the joint products at the splitoff point
no anticipation of subsequent management decisions
Term
which of the following is a reason to allocate joint costs
Definition
rate regualtion requirements
insurance settlement cost information requirements
cost of good sold computations
Term
the ____ point is the juncture in a point production process when two or more products become separately indetifiable
Definition
splitoff
Term
an example of a market based approach to allocating joint costs is allocating joint costs based on
Definition
constant Gross-margin percentage method
sales value at splittoff method
Term
what is a main product
Definition
when a joint production process yeilds one product with a high total sales value compared with total sales values of other products
Term
what is a by product
Definition
the products of a joint prodcution process that have low total sales value compared with total sales value of the main or joint product
Term
what is a joint product
Definition
two or more products with high total sales
Term
relevant costs
Definition
are expected future revenues that differ among the alternative courses of action
Term
historical costs
Definition
past costs
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