Contribution Margin per Unit Net Operating Fixed Expenses Units Varlable Expenses Income (Loss) Case Sold Sales 15,000 $180,000 $120,000 1......... $50,000 $32,000 2. 3.. 4.. $10 $13 $100,000 $8,000 10,000 $70,000 $(10,000) 6,000 $300,000 $100,000 Average Net Operating Income (Loss) $7,000 Contribution Variable Expenses Margin Ratio Fixed Expenses Case Sales 1... 2. 3 $500,000 20% $400,000 $260,000 $100,000 60% $130,000 $20,000 $(5,000) $600,000 $420,000
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Missing Data: Basic CVP Concepts
Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. (Hint: One way to find the missing amounts would be to prepare a contribution format income statement for each case, enter the known data, and then compute the missing items.)
a. Assume that only one product is being sold in each of the four following case situations:
b. Assume that more than one product is being sold in each of the four following case situations:
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