ch 1 + 2 Flashcards
what is the high low method of accounting used for
to estimate the costs
how to do the high low method
you subtract the highest value from the lowest value and then divide the tow
how to know what to put on the numerator of the high low division
on the top you put the change in cost the bottom u put whats left
what is the relationship between cost and activities termed as
cost behaviours
what is the cost behaviour of advertising
usually fixed
whats the cost behaiour for sales comission
variable usually
how to know what business would be most likly to use job order costing
if a business has customized or unique products or varying product specifications
a company sold goods that cost 30k that cost 40k what would the journal entry for this be
40k credit to sales revenue
what is managerial accounting used for
its so that internal users can track performance of the business or certain departments
what is finacial accouting used for
external users
what is a fully integrated company
a company that makes the product and sells to the customer
what are the three types of manufacturing costs
direct materials
direct labour
manufacturing overhead
what are the two types of overhead
variable and fixed
what are period costs
costs that occur outside of the manufacturing process.
(marketing , selling)
when are period costs recognized
after the sale of the good
