Break Even analysis
Sales - Variable expenses = ?
Contribution margin
total sales - break even sales
Margin of safety
Variable costing treats fixed manufacturing overhead as a: _______________
Period cost
Activity Based Costing is an extension of:
Job order costing
a fixed cost that supports the operations of more than one segment but is not traceable in whole or in part to any one segment
Common fixed cost
Equation for Contribution Margin Ratio
Contribution Margin / Sales
variable expenses / sales = ?
variable expense ratio
unit cost for variable cost includes direct material, direct labor, and _________?
Variable manufacturing overhead
An event that causes the consumption of overhead resources
Activity
any part or activity of an organization about which a manager seeks cost, revenue, or profit data
a segment
Fixed expenses / CM ratio
Unit sales (revenue) to break even
sales
typically, the income under absorption costing ends up being ___________ than variable costing
higher
A "cost bucket" in which costs related to a single activity measure are accumulated
activity cost pool
the best gauge of long run profitability of a segment
segment margin
# of units to break even formula method
unit sales to break even = fixed expenses / CM per unit
In a CVP graph, the starting point for the total expenses on the Y-axis is the ____________
Fixed expenses
Cost of goods sold is calculated as __________
Unit product cost * number of units sold
An allocation base in an activity-based costing system
Activity measure
Format used for Segment income statements
Contribution Margin Format
The calculation for company-wide break-even sales differs from normal break-even calculations when we are analyzing segments because you must include ______ in the numerator?
Common + traceable fixed expenses
% increase in sales * degree of operating leverage
The calculation to find the fixed manufacturing cost per unit (under absorption costing) uses the number of units _______________
produced
The assignment of costs from activities to individual products using a rate
Second state allocation
The sum of segment break-evens and company-wide break evens are not equal because segment break-evens do not consider ____________
common fixed costs