BEC Ratios (Cost Accounting) Flashcards Preview

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Flashcards in BEC Ratios (Cost Accounting) Deck (30):
1

Prime Costs

DM + DL

2

Conversion Costs

DL + Manufacturing OH

3

Cost of Good Manufactured

DM used + DL incurred + OH applied = cost added to production + beg. WIP inventory - end. WIP inventory = COGM

4

Break Even in Units

fixed cost / Sales Price - VC (CM)

5

Break Even in Sales Dollars

fixed cost / CM Ratio (cm/sales price)

6

Composite Units Sold

total CM / CM per unit

7

Contribution Margin Ratio

(sales - variable costs) / sales

8

Direct Materials Price Variance (DMPV) (Purchasing)

actual quantity purchased x (standard cost per unit - actual cost per unit)

DMPV = AQP x (SC - AC)

9

Direct Materials Usage Variance (DMUV) (Production)

standard cost x (standard quantity allowed - actual quantity used)

DMUV = SC x (SQA - AQU)

10

Direct Labor Rate Variance (DLRV) (Personnel)

actual hours x (standard rate - actual rate)

DLRV = AH x (SR - AR)

11

Direct Labor Efficiency Variance (DLEV) (Production)

standard rate x (standard hours - actual hours)

DLEV = SR x (SH - AH)

12

Overhead Applied (OA)

standard direct labor hours x predetermined OH rate

OA = SDLH x POHR

13

Overhead Spending Variance (OSV)

(actual DL hours x predetermined VOH rate + budgeted fixed OH) - actual OH

OSV = (ALDH x PVOHR + Budgeted FOH - Actual FOH)

14

Overhead Efficiency Variance (OEV)

predetermined VOH x (standard DL hours - actual DL hours)

OEV = PVOH x (SDLH - ADLH)

15

Overhead Production Volume Variance (OVV)

(standard DL hours x predetermined FOHR) - budgeted fixed OH

(SDLH x PFOHR) - Budgeted FOH

16

One Variance Method

Net OH Variance

17

Two Variance Method

Budget (Controllable) / Volume (Non-Controllable)

18

Three Variance Method

Spending / Efficiency / Volume

19

Four Variance Method

Fixed / Variable Spending / Efficiency / Volume

20

Weighted Average Approach

Total Cost / Total Equivalent Units = Cost per Unit

21

FIFO Approach

costs this period / units worked on this period = cost per unit

22

Variable OH Spending Variance

(standard variable OH rate - actual variable OH rate) x actual usage
or
(actual price - standard price) x actual quantity

23

Predetermined OH Rate

estimated total OH costs / est total DLH or other divisors

24

Margin of Safety: excess of sales over break even sales

MS in dollars: total sales in dollars - break even sales in dollars

MS as % of sales: margin of safety in dollars / total sales

25

Variable Cost per Unit

(costs at high - cost at low) = changes in cost
(activities at high - act at low) changes in activities

26

Total Fixed Cost

total cost - (variable cost per unit x activity) = fixed cost

27

OH Rate

estimated annual OH / estimated annual DL

28

Variable OH Efficiency Variance

standard variable OH Rate x ( actual DL hours - budgeted DL hours)

29

Applied Fixed OH Costs

Standard direct-labor hours (DLH) × Fixed overhead rate per DLH

30

Fixed OH Volume Variance (Production Volume Variance)

Budgeted Fixed OH - Applied Fixed OH