cpa bec Management Decision Making Analysis ninja
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Absorption Costing (full costing)
A type of product costing that assigns fixed overhead units produced as a product cost
The point at which an enterprise's revenues equal costs so that profit or loss is incurred. It may be stated in units or sales dollars.
Contribution margin rate
A ratio of contribution margin to price computed as (P-VC), where p is price and vc is variable cost
Margin of safety
The excess of actual or budgeted sales over sales at the breakeven point. It is the amount by which sales could decrease before losses occur
Limits within which the volume of activity can vary and sales and cost relationships remain valid.
The relative combination of products that compose a company's total sales
A past cost that has been incurred and cannot be reversed
A type of product costing that expenses fixed manufacturing overhead as a period cost
Sometimes called breakeven analysis, key factors are revenues, fixed costs, and variable costs
Contribution margin per unit
Sales price less variable cost per unit
Breakeven point in units
Total fixed costs divided by price less variable costs per unit
Breakeven point in sales dollars
Total fixed costs divided by (price less variable costs divided by price)
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