Segments and Performance Measurements
This is a type of fixed cost that comes from the existence of a particular segment.
What is a traceable fixed cost?
This is the journal entry when we use a mix of direct and indirect materials in the storeroom.
What is Dr. Work in Process, Manufacturing Overhead ;Cr. Raw Materials?
This is the formula to calculate the CM Ratio
What is Contribution Margin/Sales?
This is the first budget prepared in the Master Budget
What is the sales budget?
These are the three types of manufacturing costs.
What are direct materials, direct labor, and manufacturing overhead?
This is the formula used to calculate segment margin.
What is Segment Contribution Margin - Traceable Fixed Expenses?
This is the formula we use to calculate margin of safety.
What is Total Sales - Break-even Sales?
This is the formula for the variable MOH efficiency variance.
What is (Act. Hours * Stan. Rate) - (Stan. Hours* Stan. Rate)?
These are the types of period costs.
What are selling and administrative costs?
This is the formula to calculate Return on Investment.
What is Net operating income/Average operating assets?
This is the formula used to calculate applied manufacturing overhead.
What is Predetermined Overhead Rate * Actual Allocation Base?
This is the formula needed to find out how many units need to be sold in order to attain a target profit.
What is Profit = Unit CM*Q - Fixed Expenses?
What is (Fixed Expenses + Target profit)/Unit CM?
This is the formula for the materials quantity variance (Give me the full names of the variables in the formula).
What is (Act. Quantity * Stan. Price) - (Stan. Quantity * Stan. Price)?
This is the formula to calculate prime costs.
What is Direct Materials + Direct Labor?
This formula is used to calculate residual income.
This journal entry is recorded when a job is completed during the period and transferred from Work in Process.
What is Dr. Finished Goods; Cr. Work in Process?
This is the formula needed to find out the dollar sales needed to break even.
What is Fixed Expenses/CM Ratio?
This is the formula for the labor rate variance.
What is (Act. Hours * Act. Rate) - (Act. Hours * Stan. Rate)?
This is a type of cost that can be eliminated by choosing one option over another.
What is an avoidable cost?
This is a type of fixed cost that exists due to the overall company and are not affected by the elimination of any one particular segment.
What are common fixed expenses?
This journal entry is used when we sell some of our products on account to customers. (Include the JEs to record both the sale and the cost of the goods)
What is Dr. Accounts Receivable; Cr. Sales Revenue & Dr. Cost of Goods Sold; Cr. Finished Goods?
This formula is used when managers want to find out the % increase in net operating income.
What is % change in sales * Degree of operating leverage?
This formula helps to calculate the required production in a given month.
What is Budgeted Unit Sales + Desired Ending Inventory - Beginning Inventory?
This term refers to the difference in cost between any two alternatives.
What is differential cost?