Garrison, Chapter 1, Managerial Accounting Questions And Answers
0 view 0 purchase
Course
Managerial Accounting 12th edition
Institution
Managerial Accounting 12th Edition
Activity Base - ANS A measure of whatever causes the incurrence of a variable cost. For example, the total cost of surgical gloves in a hospital will increase as hte number of surgeries increases. Therefore, the number of surgeries in the activity base that explaines th total cost of surgic...
Garrison, Chapter 1, Managerial
Accounting Questions And Answers
Activity Base - ANS A measure of whatever causes the incurrence of a variable cost. For
example, the total cost of surgical gloves in a hospital will increase as hte number of surgeries
increases. Therefore, the number of surgeries in the activity base that explaines th total cost of
surgical gloves.
Administrative Costs - ANS All executive, organizational, clerical costs associated with the
general management of an organization rather than with manufacturing or selling.
Committed fixed Costs - ANS Investments in facilities, equipment, and basic organizational
structure that can't be significantly reduced even for short periods of time wihtout making
fundamental changes.
Common costs - ANS A cost that is incurred to support a number of cost objects but that
cannot be traced to them individually.
Contribution Approach - ANS An income statement format that organizations costs by their
behavior. Costs are separated into variable and fixed categories rather than being separated
into product and period costs for external reporting purposes.
Contribution Margin - ANS The amount remaining from sales revenues afer all variable
expenses have been deducted.
Conversion Cost - ANS Direct Labor Cost Plus Manufacturing Overhead Cost
Cost Behavior - ANS The way in which a cost reacts to changes in the level of activity
Cost Structure - ANS The relative proportion of fixed, variable, and mixed costs in an
organization.
Differential Costs - ANS A future costs that differs between an two alternatives
Differential Revenue - ANS A future revenue that differs between two alernatives
Direct Cost - ANS A cost that can be easily an conveniently traced to a specified cost
object.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller DocLaura. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.39. You're not tied to anything after your purchase.
