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10 Cards in this Set
- Front
- Back
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When would Ending finished goods inventory be higher under direct (variable) costing rather than under absorption costing
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The value is never higher under direct costing than under absorption costing because fewer costs are capitalized under direct costing.
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The contribution margin is the excess of revenues over
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All Variable Costs
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Committed costs
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Costs that are governed mainly by past decisions that established the present levels of operating and organizational capacity and that only change slowly in response to small changes in capacity.
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What are some of the reasons to use proforma financial statements? (hock)
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1. Determining the companies future need for external financing
2. What if analysis for future Change 3. Determining if the company will be compliant with required covenants on its long term debt. |
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When budgeted fixed overhead is Greater than applied fixed overhead
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it means that production was lower than budgeted volume so variance is unfavorable.
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For a single product company, the sales volume variance is
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The difference between
flexible budget and master budget sales volume times master budget unit contribution margin |
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What are 3 focuses of the theory of constraints
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Decrease investments
Decrease Operating costs increase throughput contribution |
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How do you calculate the change in WIP?
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Total Manufacturing cost
minus cost of goods manufactured |
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Proper Value chain Order
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Research and Development
Marketing Customer Service |
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Audit Interim report
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Issued during an audit when there is something that needs to be addressed immediately, there is a need to change the scope of the audit, or to keep people informed when the audit process is a long one.
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