ACC 202 Exam 1 flashcards

total amount of product costs incurred

DM+ DL+ VOH+FOH

total amount of period costs incurred

Selling Exp + Admin + Commission+ Admin Exp

variable cost per unit sold

constant DM+DL+VOH+Commission+Admin Exp

average fixed manufacturing cost per unit produced

Total Fixed OH / total units

support level of production

fixed overhead, doesn’t change

total manufacturing overhead to support; per unit basis?

FOH + VOH = total OH/units produced

contribution margin per unit sold

selling price - variable cost per unit

total amount of direct and indirect manufacturing costs

DM + DL = direct manufacturing VOH+FOH = indirect manufacturing

total incremental cost incurred to MAKE 10,000 to 10,001 units

DM + DL + VOH

what are product costs?

costs to make a product

what are period costs?

costs outside the factory

what is the difference between a direct and indirect costs?

direct costs cannot be traced easily, indirect cannot.

what is a cost driver?

a variable that costs a cost to change

what is a fixed cost

fixed cost stays constant

why does unit cost decrease as production increases?

fixed cost

contribution margin is more helpful for answering…

unit analysis

what is sunk cost bias?

escalating your commitment to a losing action from the past because of time,money,etc.

what is sunk cost?

an expense that has already been incurred

total VC is … VC/unit

variable; fixed

total FC is … FC/unit

fixed; variable

what does a graph for VC/unit look like?

straight line (fixed)

what does a graph for FC/unit look like?

downward (variable)