with a particular cost. 2. A variable cost remains constant per unit at various levels of activity. 3. A fixed cost remains constant in total and on a per unit basis at various levels of activity. 4. If volume increases, all costs will increase. 5. If the activity index decreases, total variable costs will decrease proportionately. 6. Changes in the level of activity will cause unit variable and unit fixed costs to change in opposite
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provide a detailed product or service cost analysis for the company/business of your choice. Since MODCOS1 tackles about job order costing system, make sure that the company you choose is using a job order costing system. Please ensure that the business is registered with the respective government offices. You are to provide a picture/photocopy of the certificate that the business/company is indeed registered (part of attachments section). Project Title: Cost Analysis of (Product/Service): A Case
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its fixed costs through its production volume. The old performance measurement system used by Armco Inc did not work properly because it had some problems. First, it did not provide information on the product mix being produced while it provided data on total tonnage produced but didn’t breakdown what was produced. Second the measurement system compared actual to objective but didn’t provide data on what factors exactly caused variance. Third, the costs were not broken down by fixed costs, variable
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False Questions 1. Fixed costs are irrelevant in a decision. 2. Any cost that is avoidable is relevant for decision purposes. 3. Sunk costs are sometimes relevant in decision making. 4. Fixed costs that do not differ between alternatives are sunk costs. 5. The book value of a machine, as shown on the balance sheet, is relevant in a decision concerning the replacement of that machine by another machine. 6. Depreciation expense on existing factory equipment is generally relevant to a decision of whether
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Case Study ACCT 505 Week 2 Quiz Job Order and Process Costing Systems ACCT 505 Week 3 Case Study II ACCT 505 Week 4 Midterm Exam ACCT 505 Week 5 Measuring Performance - Course Project A ACCT 505 Week 6 Quiz Segment Reporting and Relevant Costs for Decisions ACCT 505 Week 7 Capital Budgeting Course Project ----------------------------------------------------------- ACCT 505 Final Exam For more classes visits www.snaptutorial.com ACCT 505 Final Exam ------------------------------
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Propriety Audit Definition * Propriety audit stands for verification of transactions in the best interest of public, commonly accepted and standards of conduct. The term “propriety” has been defined as “that which meets the tests of public interest, commonly accepted customs, and standards of conduct, and particularly as applicable to professional performance, requirements of government regulations and professional codes”. * Instead of too much dependence on documents, vouchers and evidence
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Solutions Manual COST ACCOUNTING Fifteenth Edition Charles T. Horngren Srikant M. Datar Madhav V. Rajan ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------
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000 Incremental revenue $48,000 Assume that the variable cost per unit is $4 for AT, Inc. and fixed costs are $100,000. The relevant variable cost is the difference between the total variable costs in both alternatives. There will be a cost savings for variable costs because fewer units will be sold. Because fixed costs remain the same at all levels of activity, there is no change to fixed costs. The relevant variable cost is $4 per unit. The number of units will decrease given that 4,000
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this chapter: Variable costs Relevant range Contribution margin Break-even point Fixed costs Semivariable costs Economies of scale Sales mix Unit contribution margin Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer “None” if the statement does not correctly describe any of the terms. a. The level of sales at which revenue exactly equals costs and expenses. Break-even
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break up of Cost of Goods Sold. Typically in Costing based COPA, the values for key figures like Revenue, cost of goods sold, variances, overheads etc get stored in value field in CE1* tables. This essentially used to map the accounts such as revenue and sales deductions to value fields in costing based COPA. Additionally there were restrictions on the no of value fields in costing based copa with around 200 fields (SAP OSS Note 1029391). The account based COPA on the other hand uses cost elements
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