Marginal Costing Flashcards Preview

A2 Accounting > Marginal Costing > Flashcards

Flashcards in Marginal Costing Deck (7):
1

Contribution Definition

The amount left from revenue after all variable costs have been deducted.
This contributes to fixed costs and then profit.

2

Break even output formula

Total fixed costs / (Selling price - Varibale costs)

3

Break even revenue formula

Break even output X Selling Price

4

Contribution to Sales ratio

Total Contributuon / Sales

5

Units at Desired Profit
Break Even Revenue formula

Total Fixed Costs / CS ratio

6

Marginal Cost Table

+SP
(VC)
=Contribution
(FC)
=Profit

7

Optimum Production Plan

+SP
(VC)
=Contribution p.u.
Limiting Factor p.u.
Contribution p.u of limiting factor
Rank