Mngrl Acc Final

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    Created by
    Grace D'Esposito

    Cards (17)

    • Variable Costing

      all variable manufacturing costs (direct & indirect) are included as inventoriable costs
    • Absorption costing

      all variable and fixed manufacturing costs are included as inventoriable costs
    • Variable Costing Setup
      Revenues
      - Variable Manufacturing Costs
      - Variable Operating Expenses
      Contribution Margin
      - Fixed Manufacturing Costs
      - Fixed Operating Expenses
      Operating Income
    • Absorption Costing Setup
      Revenues
      - Variable Manufacturing Costs
      - Fixed Manufacturing Costs
      +/- Production Volume Variance
      Gross Margin
      - Variable Operating Expenses
      - Fixed Operating Expenses
      Operating Income
    • Theoretical Capacity
      • Supply-based
      • Absolute maximum efficiency possible, allows for no slowdowns
    • Practical Capacity
      • Supply-based
      • Maximum efficiency w/ unavoidable stoppage time (i.e. holidays, repairs, maintenance)
    • Normal Capacity
      • Demand-based
      • Average demand over a period of time
    • Master Budget Capacity
      • Demand-based
      • Specific budgeted demand over a specific period of time (Jan-Jun 8000u/month, Jul-Dec 10000u/month)
    • Cost Function

      Y = a + bX
      Y = total cost (depends on X)
      a = fixed cost (constant)
      bX = variable cost
      b = rate
      X = driver (independent variable)
    • High-Low Method

      Cost/driver
      Highest driver - lowest driver = b
      H/L cost = a + b(H/L driver)
    • Incremental Learning Curve

      unit # | Single Time | Total Time
      Single time x learning curve percentage = next single time
      Single time + single time... = Total time
    • Cumulative Average Learning Curve

      unit # | Single Time | Average Time | Total Time
      Average time x learning curve percentage = next average time
      Average time x unit # = total time
    • Regression Analysis
      Coefficients*
      Y = constant + (X coefficient)X
    • Relevant costs/revenues

      expected future costs/revenues
    • Special Order
      Relevant revenues - relevant costs
      Selling Price/revenues
      - direct materials
      - direct labor
      - variable OH
      - fixed OH
      compare contribution margins/OI
    • Make vs Buy
      add relevant costs
      Direct materials
      + direct labor
      + variable OH
      + fixed OH
      Total cost
      compare TC
    • Production Volume Variance

      (Budg production - actual production) x FMC/u
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