Manangerial acct midterm 2

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Description and Tags

Accounting

University/Undergrad

26 Terms

1
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Profit (Net Operating Income)
(sales - variable expenses) - fixed expenses
2
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Sales
Selling Price Per unit * Quantity sold
3
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Variable Expenses
Variable expense per unit * quantity sold
4
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Unit Contribution Margin
selling price per unit - variable expenses per unit
5
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Profit
Unit Contribution Margin * Quantity - Fixed Expenses
6
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Contribution Margin Ratio
Contribution Margin / Sales
7
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Contribution Margin Ratio (Acoustic)
Total Contribution Margin / Total Sales
8
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Contribution Margin Ratio (One Product)
Unit Contribution Margin / Unit selling price
9
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Variable Expense Ratio
variable expenses/sales
10
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Variable Expense Ratio (Acoustic)
Total Variable Expense / Total Sales
11
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Variable Expense Ratio (One Product)
Variable Expense Per Unit / Unit Selling Price
12
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Change In Contribution Margin
Contribution Margin Ratio * Change in Sales
13
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Change in Profit
Contribution Margin Ratio * Change in Sales - Change in FIxed Expenses
14
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Unit Sales to Break Even
Fixed Expenses / Unit CM
15
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Dollar sales to break even
Fixed Expenses / CM Ratio
16
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unit sales to attain target profit
Target Profit + Fixed Expenses / Unit CM
17
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Dollar Sales to Attain Target Profit
target profit + fixed expenses / CM ratio
18
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Margin of Safety in Dollars
total budgeted (or actual) sales - break even sales
19
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Margin of Safety Percentage
margin of safety in dollars / total budgeted (or actual) sales in dollars
20
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Degree of Operating Leverage
Contribution Margin / Net Operating Income
21
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Percentage Change in Net Operating Income
degree of operating leverage x percentage change in sales
22
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Manufacturing Overhead Deferred in (released from) inventory
Fixed Manufacturing Overhead in Ending Inventories - Fixed manufacturing overhead in beginning inventories
23
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Dollar sales for company to break even
traceable fixed expenses + common fixed expenses / overall CM ratio
24
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Dollar sales for a segment to break even
segment traceable fixed expenses / segment CM ratio
25
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Contribution Margin Ratio
Contribution Margin / Sales
26
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Contribution Margin
Sales - Variable Costs