1 What can change the break even point
fixed cost
2 what are the benefits and limitations of the Hilow method of cost estimation
adv simple easy and familiar equation. dis Limited data is not specific
3 cost behavior that’s constant regardless of volume
fixed
4 for external financial reporting what format of the income statement does gap require
absorption
5 cost behavior that’s proportionately changed to volume
variable
6 cost behavior that consist of part fixed and variable
mixed
7 contribution margin =
selling price - variable cost
8 Who can use ABC costing
anyone
9 what is the sales mix
proportions of product to total sales
10 what does R squared represent in a regression output
how much variability of y is explained by X
11 Target income =
(fixed cost + target income)nit contribution margin
12 what is relevant range
realistic production capacity
13 how do you unit variable cost behave
proportionately with volume
14 what is a scatterplot and why is it used
graph showing relationship of cost behavior to change in volume
15pohr =
eat tot alloc moh/ est tot cost driver
16 overhead rate calculated by doing plantwide
pohr
17 why would departmental overhead rates be preferred by a firm
to give more accurate overhead rates
18 how to find the ABC activity rate
allocated MOH divided by allocated base equals rate times actual activity
19 contribution margin ratio represent
amount per dollar to cover fixed cost and profit
20 what are strategies used by lean manufacturing
just in time, continuous flow, short cycle times, small batches, self-contained production cells
21 what are cost of quality
preventative, appraisal, internal and external failures
22 give an example of a preventative cost of quality
training and development, inspecting prototype, designing
23 example of appraisal cost of quality
periodic test
24 example of internal failure cost of quality
Final test
25 example of external failure cost equality
user warranty
26 what are the benefits of using ABC
more accurate cost allocations
27 how do you calculate Hilow costing
y1-y2 x1-x2 dif y /dif x= rate y1=ratex1+f
28 Break even point in units=
fixed cost/ unit contribution margin
29 Break even point in dollars=
fixed cost /contribution margin ratio
30 weighted average contribution margin =
unit contribution margin x sales mix proportion
31 Break even point in units with weighted contribution average
fixed cost/ weighted average contribution margin
32 to find how many of each product needs to be sold multiply
Break even point in units x sales makes proportion
33what is an acceptable r^2
.5
35what is an awesome r^2
.9
36GAAP income statement
sales-cogs=gross profit- opp exp= opp income
37contribution margin income statement
sales- variable cost=contrib marg - fixed cost= opp income
38contribution margin ratio=
cm/sell price