test 1 cost acct

DOL

CM/profit before tax

CM

total revenue - variable costs

COGM

beginning wip inventory + total production costs - ending wip inventory

COGS

beginning finished goods + COGM + ending FG

high low method

1. calculate VC per unit (b) which is cost at high lvl - cost at low lvl / activity at high lvl - cost at low lvl

2. calculate total VC by doing b * activity lvl at high or low

3. calculate total FC by subtracting TVC from total cost at same activity lvl

   1. should get y = b + ax equation

BEP in units

total FC / CM per unit

BEP in dollars

total FC / CM ratio where cm ratio is CM / unit sales price

before-tax profit

after-tax profit / 1 - tax rate

sales units for fixed before-tax profit

(FC + before tax profit) / CM per unit

sales dollars for fixed before-tax profit

(FC + before tax profit) / CM%

multiproduct cvp BEP in units

FC / CM per “bag”

multiproduct cvp BEP in dollars

BE units * sales mix

margin of safety

actual sales units or dollars - BE units or dollars

MOS

1 / DOL

relevant costs

internal production costs + opportunity costs, external purchase cost