BSNS107 week 9

Card Set Information

Author:
rosme090
ID:
89600
Filename:
BSNS107 week 9
Updated:
2011-06-07 06:39:00
Tags:
BSNS107
Folders:

Description:
Planning and Decision Making
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user rosme090 on FreezingBlue Flashcards. What would you like to do?


  1. Relevent cost concepts include:
    • Differential Cost
    • Opportunity Cost
  2. Irrelevent cost concepts include:
    • Allocated Cost
    • Sunk Cost
  3. Short run decisions include:
    • Special Pricing
    • Make or Buy
    • Product Mix Decision
  4. What 3 things should you consider when making a special pricing decision?
    • It the firm operating above break-even?
    • Is there capacity?
    • Will it result in a positive CM?
  5. Relevant costs include :
    • Direct Materials
    • Direct Labour
    • Variable Overhead
  6. In a make or buy decision the relevent cost is the cost that can be:
    Avoided by outsourcing
  7. Direct Costing per unit
    (DM + DL + VOH) / units
  8. Absorption Costing per unit
    (DM + DL + VOH + FOH) / units
  9. Income Statement format
    • Revenue
    • (COGS)
    • Gross Profit
    • (Fixed OH)
    • (Other expenses)
    • Net Income
  10. Predetermined OH application rate:
    • POAR= Estimated MOH
    • Estimated Units (driver)
  11. Overhead applied:
    Overhead applied = POAR x actual activity

What would you like to do?

Home > Flashcards > Print Preview