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8 Cards in this Set
- Front
- Back
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What are prime costs |
Direct labour Expenses Materials |
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What are overheads |
Indirect labour Expenses Materials |
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Direct/indirect definition |
Direct cost can be economically identified with a specific salable unit of output |
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Total cost in a manufactory organisation |
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Semi valuable costs - high Low method |
= 20000 units at 1000 Work out variable cost per unit = 1000÷20000 = 0.05 Highest cost - lowest cost = 20000 units at 1000Work out variable cost per unit = 1000÷20000 = 0.05 Times 0.05 by units to get variable cost The difference Is fixed cost Times 0.05 by units to get variable cost The difference Is fixed cost |
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What is contribution |
Selling price- variable cost Contributing towards profit and fixed cost |
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Breakeven analysis |
Fixed cost ÷ contribution = number of units to breakeven |
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Difference between mark up and margin |
Markup = when we refer profit as a percentage of cost Margin = when we refer profit as a percentage of selling price |
