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19 Cards in this Set
- Front
- Back
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what costs do these fall under? 1.cleaning supplies 2.taxes 3. insurance 4.Janitor wages |
manufacturing overhead |
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This statement is true |
within relative range of activity fixed costs remain constant in total the relative range is approximately a straight line |
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fixed costs |
factory rent factory insurance administrative salary |
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mixed cost are also known as |
semi vairable costs |
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costs shared by multiple cost objects |
common costs |
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within relevant range of activity VARIABLE costs |
remain constant per unit but vary in total |
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contribution margin |
sales revenue - variable expenses |
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Fixed costs |
remain constant in total regardless to change in activity should not be expressed in a per unit basis gererally include rent and supervisors salary |
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the straight line equation y= a + bx is used to |
express the relationship between mixed costs & level of activity |
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within relevant range _____ cost remains constant on a per unit basis |
variable |
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indirect labor costs |
*manufacturing costs only* assembly line supervisor salary factory security guard wages |
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cost object |
any item where cost data is desired |
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What is true about product costs |
product costs attach to units of product as they are purchased for resale or produced inventorable costs |
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period costs |
cost involved in SELLING a product |
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marginal cost |
cost inccured to produce one more unit of product |
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When using the high low method, the change in cost divided change in unit equals |
the variable cost per unit |
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Activity base |
a measure of what causes VARIABLE costs to occur (measures whatever causes cost to vary) aka cost driver |
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for high low method |
Fixed cost are calculated after variable |
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examples of activity bases |
machine hours direct labor hours number of purchased orders |
