Using Fixed And Variable Costs Within The Report

first part of the report will focus on the cost behavior and how this will benefit the company when it comes to profit making, as the company managers do not clearly understand the relationship between business activities and the costs of those activities. It will then go on to discuss cost function and how it can be derived for this company. The last part of this report will focus into the company’s profit and how it can be predicted in relation to the changes in volume, costs and prices. It will

Name: Class: Cost Accounting Date: 02.12.2012 Quiz 5 1) Absorption costing: A) expenses marketing costs as cost of goods sold B) treats direct manufacturing costs as a period cost C) includes fixed manufacturing overhead as an inventoriable cost D) is required for internal reports to managers 2) Variable costing: A) expenses administrative costs as cost of goods sold B) treats direct manufacturing costs as a product cost C) includes fixed manufacturing overhead as an inventoriable

system used by the company for accumulating costs for inventory valuation and profit measurement. This alternative system was called variable costing because only variable production costs were

approach for allocating cost, whereby he is making money but his accountant Mark Webb depicts a real picture of how he should allocate costs to his peanuts business that involves taking into account the fixed overheads by absorbing them, this process is known as absorption costing technique. Using absorption costing mark is able to tell Pedro that actually he is incurring a cost of $6,252 by doing the business of peanuts. He has also explained to him the advantages of using this techniques and how

chapter: Variable costs Relevant range Contribution margin Break-even point Fixed costs Semi variable costs Economics 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 point. b. Costs remain

the company was concerned about the financial report of May, 2004, given to her by the plant accountant. The report indicated huge variance discrepancies between the budgeted profit ($91,200) and the actual outcome

________________________ 1. Direct material costs are generally variable costs. True False 2. Property taxes and insurance premiums paid on a factory building are examples of manufacturing overhead. True False 3. Manufacturing overhead combined with direct materials is known as conversion cost. True False 4. All costs incurred in a merchandising firm are considered to be period costs. True False 5. Depreciation is always considered a product cost for external financial reporting purposes in a

for the purpose of preparing reports for statutory reporting, decision making and control.   Types of accounting Bookkeeping is the recording of financial transactions. Transactions include sales, purchases, income, receipts and payments by an individual or organization. Bookkeeping is usually performed by a bookkeeper. Bookkeeping should not be confused with accounting. The accounting process is usually performed by an accountant. The accountant creates reports from the recorded financial transactions

ch01 Student: 1. Direct material costs are generally variable costs. True False 2. Property taxes and insurance premiums paid on a factory building are examples of manufacturing overhead. True False 3. Manufacturing overhead combined with direct materials is known as conversion cost. True False 4. All costs incurred in a merchandising firm are considered to be period costs. True False 5. Depreciation is always considered a product cost for external financial reporting purposes

decision making process and an awareness of the users of accounting information. The major purposes of accounting are to formulate overall strategies and long-run plans. Resource allocation decisions such as product, pricing and customer emphasis. Cost planning and control of