# Shared Flashcard Set

## Details

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

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
 Find high & low points activity levels Calculate variable rate Calculate fixed cost 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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