chapter 2 Flashcards
(16 cards)
parts in manufacturing (factory) overhead
indirect materials
indirect labour
other – dep, factory stuff
conversion cost
manufacturing overhead + direct labour
prime cost
direct labour + direct materials
product cost
all costs that are involved in manufacturing the product
period cost
selling and admin costs
cogs equation
beg finished goods + cogs manufactured - ending finsihed goods
variable costs
change with activity
fixed costs
unchanged
total varibale cost…
changes as activity level
variable costs stay the same …
per unit
fixed cost per unit …
goes up with activity
opportunity cost
potential benefit when giving up one alt for another
sunk costs
incurred and not changeable
do not consider when making decisions
gross margin formula
sales - cogs
diff costs
difference in cost
differential rev
diff in rev
