managerial accounting

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  1. Fixed Cost
    A cost that does NOT change in total despite a change in volume

    • Example: Rent
    • The only time rent would fluctuate is if you sign a new lease
  2. Variable Cost
    • That changes in total as volume changes
    • Remains constant on a per unit basis
  3. Mixed Cost
    • Part fixed, part variable
    • Example:
    • Cell phone bills
    • Utilities
  4. Opportunity Cost
    Income forgone by NOT selecting the other alternative
  5. Sunk Cost
    • Cost that cannot be reversed
    • Already been paid (incurred)
    • Sunk into investment
    • Can’t get it back
    • An irrelevant cost and should not be considered in making additional investment decisions
  6. Product Costs
    An inventoriable cost

    Debit expenditure to “inventory”
  7. Direct labor costs
    Assembly line personnel – people that work directly on the manufacturing of the product
  8. Factory overhead
    All the costs of running the factory that aren’t directly related to the manufacture of a particular product

    Factory utilities, depreciation, janitors, rent
Author:
ndumas2
ID:
85065
Card Set:
managerial accounting
Updated:
2011-05-10 20:01:53
Tags:
survey accounting anderson lsu
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Description:
cards for Managerial accounting section
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