Term
|
Definition
|
|
Term
| This is a measure of how sensitve Net Oper. Income is to a given % change in dollar sales |
|
Definition
|
|
Term
|
Definition
|
|
Term
| Margin of Safety in Dollars |
|
Definition
| Total Sales- Breakeven Sales |
|
|
Term
| Margin of Safety Percentage |
|
Definition
| Margin of safety in dollar/ Total budgeted (or actual) sales in dollars |
|
|
Term
| A fixed cost that supports the operations of more than one segmen, but is not traceable in whole or part to any segment. |
|
Definition
|
|
Term
| Used to estimate what sales volume is needed to achieve a specific target profit |
|
Definition
|
|
Term
| Unit sales to attain the Target Profit |
|
Definition
| Target Profit+Fixed Expenses/ Unit CM |
|
|
Term
| Dollar sales to attain the Target Profit |
|
Definition
| Target Profit+ Fixed Expenses/ CM Ratio |
|
|
Term
|
Definition
| treats all manufacturing cost as product cost, regardless if they are variable or fixed. |
|
|
Term
|
Definition
| only those MOH cost that vary with out put is treated as a product cost. |
|
|
Term
| DM + DL + VariableMOH + FixedMOH |
|
Definition
|
|
Term
|
Definition
|
|
Term
| A costing method that is designed to provide managers witht he cost info for strategic and other decisons that potentially affect capacity and therefore "Fixed" as well as Variable Cost |
|
Definition
| Activity-Based Costing (ABC) |
|
|
Term
A 12 month budget that rolls foward 1 month. (always have 12 months ahead planned)
|
|
Definition
|
|
Term
| self-imposed, prepared with full cooperation & participation of managers & by higher up. No "Budgetary slack" |
|
Definition
|
|
Term
|
Definition
| For detailed quantative plan for aquiring, using financial & other resources over specified 4th coming time. |
|
|
Term
| An essential managment tool that communicates managment plans throughout the organization, allocates resources and coordinates activities. |
|
Definition
|
|
Term
| Managers should only be responsible for those items & only those items that they can actually control to a significant extent. |
|
Definition
|
|
Term
|
Definition
| Total Sales - Fixed Expenses |
|
|
Term
| How to find Net Operating Income? |
|
Definition
|
|
Term
| When CM=Fixed Expenses, it is what? |
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| this is performed each time a batch is handled or processed, regerdless of how many unit are in the batch. |
|
|
Term
|
Definition
| this is performed each time a unit is produced. the cost of the unit level activities shoulf be proportional to the number of units produced. |
|
|
Term
| What is a benefit of using ABC? |
|
Definition
| result in more accurate product cost. and reclassfies certain MOH cost into direct components. |
|
|
Term
|
Definition
| the amount associated with the cost objects that is used to proportionally distribute cost to each cost object. |
|
|
