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Flashcards in Introduction Deck (5)
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1
Q

Main changes that took place in the business environment

A
  • Service industry predominance
  • E-businesses
  • Customer is central: TQM
  • Shorter product life cycles
2
Q

Categories of cost

A
  • Product vs period cost
  • direct (prime) vs indirect (conversion) costs
  • Variable vs Fixed costs
  • sunk costs
3
Q

Types of manufacturing costs

A
  • direct materials
  • direct labour
  • manufacturing OH: untraceable and indirect
4
Q

Fixed and variable cost behaviour in a total and per unit basis

A
  • Total variable costs: change in direct proportion to activity level
  • Total fixed costs: remains constant no matter the activity level
  • variable costs per unit: constant (same price per unit)
  • fixed costs per unit: decreases as the level of activity increases
5
Q

Managerial accounting definition

A

Discuss, identity and analyse information provided to internal users for decision-making, planning and controlling operations in an organisation in order to achieve competitive advantage