Term
| one time only special orders should only be accepted if |
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Definition
| incremental revenues exceed incremental costs |
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Term
| full cost of the product is |
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Definition
| the sum of all variable and fixes costs in all the business functions of the value chain |
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Term
| how do you find the contribution margin |
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Definition
|
|
Term
| how do you find the operating income |
|
Definition
| sales-variable costs - fixed costs |
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Term
| the best way to avoid mis-indentification |
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Definition
| expected future costs that differ among the alternatives |
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Term
| three major influences on pricing decisions are |
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Definition
| competition costs and customers |
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Term
| all of the following are associated with target costing execpt |
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Definition
|
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Term
| all costs incurred beyond the splitoff point that are assignable to one or more individual products are called |
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Definition
|
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Term
| the focus of joint costing is on allocating costs to individual products |
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Definition
|
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Term
| byproducts and main products are differentiated by the |
|
Definition
| amount of sales value per unit |
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Term
| which of the following is not a primary reason for allocating joint costs |
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Definition
| to calculate the bonus of the chief executive officer. |
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Term
| which of the following is not a market based approach to allocating costs |
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Definition
|
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Term
| which cost allocation method should not be used to eliminate the conflict between decision making and performance |
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Definition
|
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Term
| which method of accounting recognizes by products in the financial statements at the time their production is completed |
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Definition
|
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Term
| which of the following is not a reason to use the sales value at split off method |
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Definition
simplicity
measurement of the value of the joint products at the splitoff point
no anticipation of subsequent management decisions |
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Term
| which of the following is a reason to allocate joint costs |
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Definition
rate regualtion requirements
insurance settlement cost information requirements
cost of good sold computations |
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Term
| the ____ point is the juncture in a point production process when two or more products become separately indetifiable |
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Definition
|
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Term
| an example of a market based approach to allocating joint costs is allocating joint costs based on |
|
Definition
constant Gross-margin percentage method
sales value at splittoff method |
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Term
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Definition
| when a joint production process yeilds one product with a high total sales value compared with total sales values of other products |
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Term
|
Definition
| the products of a joint prodcution process that have low total sales value compared with total sales value of the main or joint product |
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Term
|
Definition
| two or more products with high total sales |
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Term
|
Definition
| are expected future revenues that differ among the alternative courses of action |
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Term
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Definition
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