Net income will be overstated if a significant selling and administrative expense is
classified as a product cost and the number of products made is ______ than the
number of products sold - ️️more
Mixed Costs - ️️Costs that contain both a variable and a fixed cost element and
change in...
ACCT 245 (OKINAWA) WWU EXAM 1
Net income will be overstated if a significant selling and administrative expense is
classified as a product cost and the number of products made is ______ than the
number of products sold - ✔️✔️more
Mixed Costs - ✔️✔️Costs that contain both a variable and a fixed cost element and
change in total but not proportionately with changes in the activity level.
Upstream Costs - ✔️✔️occur before the manufacturing process begins
Downstream Costs - ✔️✔️marketing, distribution, and customer service
Fixed Costs - ✔️✔️Costs that do not vary with the quantity of output produced
Variable Costs - ✔️✔️Costs that change as output changes
Profit= - ✔️✔️Sales-Variable costs-Fixed costs
bonus point - ✔️✔️you win
CM Ratio - ✔️✔️CM/Sales
Break even point in dollars - ✔️✔️Fixed Costs/CMR
desired Sales Volume in units - ✔️✔️(Fixed costs+Desired profit)/CM per unit
Margin of safety - ✔️✔️(Budgeted sales-Break even sales)/Budgeted sales
Break even volume in units - ✔️✔️Fixed Costs/CM per unit
Magnitude of Operating Leverage - ✔️✔️CM/Net income
Variable Cost per unit - ✔️✔️Difference in total cost/Difference in volume
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