Financial vs Management
Direct and Indirect
Costs
CVP
Misc. Accounting
100

This type of accounting is used primarily within the company. 

Managerial

100

Are costs that can be traced back to a product.

Direct costs

100

Change with respect to sales.

Variable costs

100

What the acronym stands for.

Cost-volume-profit

100

This type of income statement is organized by product and period costs.

GAAP Income statement

200

This type of accounting reports information to people outside of the company.

Financial

200

These materials are used in order to manufacture a product but are not part of the finished product.

Indirect materials

200

Costs that do not change when sales volume change.

Fixed costs

200

Method used to determine NOI of $0.

Break-even analysis

200

This is the measure of cushion a company has before it will suffer a loss.

Margin of Safety

300

Is bound by GAAP.

Financial

300

Manufacturing overhead is part of this type of cost.

Indirect costs

300

This is a cost of an alternative not being picked.

Opportunity cost

300

If you have a variable cost of $3/unit and a contribution margin of $7/unit, what are your fixed costs if you have NOI of $1,200 and sold 1,500 units?

$9,300

300

When determining predetermined allocation rate, do you use estimated or actual numbers?

Estimated

400

Is used to see the standing of segments of an organization.

Managerial

400

Prime costs go into this cost bucket.

Direct costs

400

High-Low analysis is used to do this.

Sperate mixed costs

400

You need to sell 200 units to break even and contribution margin is $125/unit. How many units need to be sold to have an NOI of $2,500?

220 units

400

Manufacturing overhead is a (product/period) cost.

Product cost

500

Uses all available data to focus on future performance.

Managerial

500

Is also known as touch labor.

Direct labor

500

This is used to separate mixed costs when there is a large amount of data.

Regression analysis

500

If fixed costs are $15,000 and variable costs are $4/unit, what are the break even units if each unit sells for $10?

2,500 units

500

This type of costing is the backbone of how most companies allocate costs.

ABC costing

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