the cost of materials that are directly traceable to the product and that are costly enough to warrant tracing them.
What is direct material products cost
100
discounts offered to induce customers to pay their bills early.
What is purchase discounts
100
a shipping agreement between the business and common carrier.
What is Bill of Lading
100
taking the highest level of activity and the lowest level of activity and comparing the total costs at each level.
What is High-Low Method
100
Obligations to transfer economic resources
What is Liability
200
the cost of employees who manufacture the product.
What is direct labor products cost
200
a cost that varies with the number of units.
What is unit related costs
200
a situation where legal title to goods passes to the customer when goods are received.
What is FOB destination
200
contribution margin/sales
What is contribution ratio
200
is a type of business entity that is owned and run by one person and in which there is no legal distinction between the owner and the business.
What is Sole Proprietorship
300
the cost of production employees who do not physically manufacture the product.
What is indirect labor products costs
300
a cost that varies with the number of batches regardless of how many units are in each batch.
What is batch related costs
300
a situation where legal title to goods passes to the customer when the goods are picked up by the common carrier.
What is FOB shipping point
300
total sales=total costs
What is what break even point
300
Generally Accepted Accounting Principles, set of reporting standards applicable to all companies
What is GAAP
400
all costs incurred to manufacture products other than direct materials and direct labor.
What is manufacturing overhead products costs
400
a cost that varies with the number of product lines.
What is product sustaining costs
400
the floor setup that organizations create so that machines related to the production of certain products or types of products are close together.
What is Cells
400
total fixed costs/contribution margin ratio
What is break even point in dollars
400
Establishing a selling price based on costs that will earn it a return over the life of the product.
What is Life-Cycle pricing
500
the cost of production materials that either cannot be traced to the product or whose cost is not enough for tracing.
What is indirect material products costs
500
a cost incurred to maintain the company's capacity to operate.
What is facility sustaining costs
500
adjustments made to machines to get them ready to manufacture the next type of product.
What is Machine set ups
500
total fixed costs/contribution margin in units
What is break even point in units
500
companies in this environment tend to adopt a flexibility strategy that helps to adapt to changing market conditions by developing new products, services, or markets, and technologies