Term
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Definition
| Beg Raw Materials Inventory + Raw Materials Purchased = Raw Materials Available. RMA - Ending Raw Materials Inventory = Raw Materials Used in Production. RMUP + Direct Labor + Applied Manufacturing Overhead = Total Manufacturing Costs. TMC + Beginning WIP Inventory, - Ending WIP Inventory = COGM |
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Term
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Definition
| Beginning Finished Goods Inventory + COGM = COG available for sale |
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Term
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Definition
| CoG Available for sale - Ending Finished Goods Inventory = Unadjusted COGS |
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Term
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Definition
| Unadjusted COGS +/- Under/Overapplied Manufacturing Overhead |
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Term
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Definition
| Revenues - fixed costs - variable costs = MOS |
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Term
| Margin of Safety in number of sales |
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Definition
| Revenue - variable costs - fixed costs/price per unit |
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Term
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Definition
| Revenue - variable costs - fixed costs/revenues |
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Term
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Definition
| Revenues - Variable Costs |
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Term
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Definition
| contribution Margin - fixed Costs |
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Term
| Degree of Operating Leverage |
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Definition
| Contribution Margin/Operating Income |
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Term
| Break-even volume and Target Income Volume |
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Definition
| (Fixed costs + Target Income)/Contribution margin per unit |
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Term
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Definition
| actual sales - Break Even |
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Term
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Definition
| Actual sales - break even/actual sales |
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Term
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Definition
| (Actual quanty x Actual Price), then (Actual quantity of input x standard price), (Standard price - actual price) x Actual feet = variance (F/U?) |
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Term
| Labor Efficiency Variance |
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Definition
| (A)Actual Hours (AH) x Actual rate (AR), then (B) AH x Standard Rate (SR), then (C)SH x SR Labor Rate variance = SR - AR X AH… Labor Efficiency Variance = SH-AHxSR |
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Term
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Definition
| Needs of the Prior Budget + Ending Inventory - Beginning Inventory |
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Term
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Definition
| `Sales Budget + EFGI - BFGI |
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Term
| Direct Materials Production Budget |
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Definition
| Production Budget X Direct Materials per Unit |
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Term
| Direct Materials Purchases Budget |
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Definition
| Direct Materials Production Budget + Ending Direct Materials Inventory - Beginning Direct Materials Inventory |
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Term
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Definition
| Already incurred, and irrelevent to decision making |
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Term
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Definition
| The cost that differs between alternatives. Relevent for decion making |
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Term
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Definition
| The maximum available contribution to profit foregone by using limited resources for a particular purpose. relevent for decision making |
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