CPA BEC Cap budgeting tools

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Anonymous
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15314
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CPA BEC Cap budgeting tools
Updated:
2010-04-20 01:40:44
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CPA BEC Cap budgeting tools
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CPA BEC Cap budgeting tools
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  1. Avoidable Cost
    A cost that could be eliminated in whole or in part if a different course of action is taken that would either end the need for the activity or increase efficiency
  2. Differential Cost
    A cost that differs between alternatives, also known as incremental cost or relevant cost.
  3. Imputed Cost
    A relevant cost in decision making but one for which information might not be available.
  4. Absorption Costing (full costing)
    A type of product costing that assigns fixed overhead units produced as a product cost
  5. Contribution margin rate
    A ratio of contribution margin to price computed as (P-VC), where p is price and vc is variable cost
  6. 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
  7. Variable costing
    A type of product costing that assigns fixed overhead units produced as a product cost
  8. Cost-volume-Profit analysis
    Sometimes called breakeven analysis, key factors are revenues, fixed costs, and variable costs
  9. Contribution margin per unit
    Sales price less variable cost per unit
  10. Breakeven point in units
    Total fixed costs divided by price less variable costs per unit
  11. Breakeven point in sales dollars
    Total fixed costs divided by (price less variable costs divided by price)
  12. Determining the number of units to generate a profit
    Total fixed costs plus net income before taxes divided by price less variable costs

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