Management Accounting Ch05
Quizzes and Glossary
Quizzes and Glossary
Set of flashcards Details
| Flashcards | 34 |
|---|---|
| Language | English |
| Category | Finance |
| Level | University |
| Created / Updated | 31.05.2021 / 01.02.2023 |
| Licencing | Not defined |
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The range over which a company is expected to operate is called the relevant range of the activity index.
Chapter 5
A mixed cost contains both selling and administrative cost elements.
Chapter 5
Variable costs are costs that remain the same per unit at every level of activity.
Chapter 5
If a salesperson incurs $2,000 of expenses in servicing two customers and $4,000 of expenses in servicing four customers, the fixed costs are $1,000.
Chapter 5
If revenue = $80 and variable cost = 40% of revenue, then contribution margin = $48.
Chapter 5
The contribution margin is the amount of revenue remaining after deducting fixed costs.
Chapter 5
Sales mix is the percentage that each product represents of total sales.
Chapter 5
If the unit contribution margin is $300 and fixed costs are $240,000 then the break-even point in units would be 800 units.
Chapter 5
