Classified in Economy

Written at on English with a size of 2.84 KB.


Chapters (1-3)

Cost objects: anything
Direct cost: costs that can be easily traced to a cost object (DL-DM)
Indirect cost: hard to trace (MOH)
Variable cost: more units we produce, higher cost. variable cost are variable per unit. ($ per unit x units produced)
Fixed cost: does not change. Not related to production. (total cost/units produced)
product cost: cost of producing a product and prepare it for sale. Includes DM-DL-MOH
period cost: no manufacturing costs. They are expenses: selling and administrative.
opportunity cost: its the 2nd better choice. When 1 alternative is chosen over another one.
prime cost (direct cost) = DM+DL/# of units produced
conversion cost = DL+MOH/# of units produced
gross margin   =        sales rev       -            COGS
                    (#of units produced x        ( DM+DL+MOH x
                      produced and sold)            produced and sold)

gross margin (per unit) = selling price - COGS
total period expense = selling price + administrative expense
operating income = gross margin - operating expenses

semi-variable cost(mixed cost): have mixed and variable cost
semi fixed cost (step cost): constant level of cost for a range of output and then jumps to higher level of cost at some point, where it remains for a similar range of output 
mixed cost methods:
- high-low method: easy to use as long as production is stable
-scattegraph: better than high low but not than method of least squares
-least squares: most accurate method so far. 

total cost= fixed cost + variable cost
variable rate = change in cost / change in activity
fixed cost = total cost - (variable cost per unit x number of units)
   ---> elegir HIGH or LOW para este ejercicio
variable cost = # que te de el ejercicio x variable rate 

Entradas relacionadas: