test 2 acct Flashcards
1
Q
Net Income Formula
A
Revs - Exp(-VC-FC)
2
Q
CM Formula
A
sales - VC
3
Q
units needed formula
A
FC+Target NI/CMPU
4
Q
CMR formula
A
CM/Sales
5
Q
Break even Sales (BES)
A
FC/CMR
6
Q
Break Even Units (BEU)
A
FC/CMPU
7
Q
CM income statement
A
Rev - VC = CM - FC = NI
8
Q
what is a variable cost
A
DM, DL, Sales commission, factory lease
9
Q
High Low method
A
High cost - Low cost / high units - low units = vc per units
10
Q
total costs
A
VC + FC
11
Q
plantwide overhead rate
A
total FOH / activity base driver
12
Q
production budget
A
units needed + desired EI - Beg inv = units to produce
13
Q
sales budget
A
sales (units) * selling price per unit
14
Q
CMPU
A
CM/Sales
15
Q
Break Even Point
A
FC/CMPU
