Term
|
Definition
|
|
Term
|
Definition
Total Product Cost
# of units
|
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
| Direct Materials Used in Production |
|
Definition
| Beg. inventory + Purchased - Ending Inventory |
|
|
Term
| Cost of Goods Manufactured |
|
Definition
| DM+DL+MOH-Ending WIP inventory |
|
|
Term
|
Definition
Beg. finished goods inventory
+
Cost of goos manufactured
-
Ending finished goods inventory |
|
|
Term
|
Definition
| Total Fixed Cost + (VR x units of output) |
|
|
Term
|
Definition
|
|
Term
|
Definition
- Find high & low points
- Calculate variable rate
- Calculate fixed cost
- Form Cost formula
|
|
|
Term
Variable Rate for
High-Low Method |
|
Definition
High Cost - Low Cost
High Output- Low Output |
|
|
Term
Fixed Cost for
High-Low Method |
|
Definition
Total cost at high point - (VR x output at high point)
OR
Total cost at low point - (VR x output at low point) |
|
|
Term
Cost Formula for
High-Low Method |
|
Definition
fixed cost + (VR x # of moves)
*for the month |
|
|
Term
|
Definition
|
|
Term
|
Definition
(Price x units sold) (sales revenue)
-
(Unit Variable Cost x units sold)(Total Variable Cost)
-
Fixed Cost |
|
|
Term
Break-Even Point
(in units) |
|
Definition
Fixed Cost
(Price - Unit Variable Cost) |
|
|
Term
| Contribution Margin Ratio |
|
Definition
Total Contribution Margin
Sales
OR
(Price-Unit Variable Cost)
Price |
|
|
Term
|
Definition
Total Variable Cost
Sales
OR
Unit Variable Cost
Price |
|
|
Term
Break-Even Point
(in Sales Dollars) |
|
Definition
Fixed Cost
Contribution Margin Ratio
OR
Fixed Cost
(1-Variable Cost Ratio) |
|
|
Term
|
Definition
|
|
Term
Degree of Operating Leverage
(DOL) |
|
Definition
Total Contribution Margin
Operating Income |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Total Costs per Unit - Fixed Costs per Unit |
|
|
