10014_021910_18 - units produced) Relevant range: range of...

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e same no matter what happens with volume s volume increases s volume decreases direct proportion with changes in volume though sales units or production units change (ex. Gas) Worksheet Example 2 Schedule of COGM DM Beg. Inventory 170 + Purchases 2000 Mat. Available 2170 - End. Inventory 1130 DM used 1040 DL 700 OH 860 Total Curr. Mfg. Costs 2600 + Beg. WIP (Job 1) 600 Subtotal 3200 - End. WIP (Job 4) 740 COGM 2460 Income Statement Sales 3475 - COGS Beg. FG (Job 2) 420 + COGM 2460 GAFS 2880 - End. FG 1338 1542 Gross Profit 1933 - Selling Exp. 190 Net Income 1743 II. Costs Used to Predict Cost Behavior - How will costs react to changes in levels of activity or volume? (Sales or # of
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Unformatted text preview: units produced) Relevant range: range of activity within which assumptions about the VC and FC are valid. In other words, you can rely on the VC unit cost to remain the same and the FC total cost to remain the same. III. Assigning Costs to Cost Objects-Anything for which we want to collect costs (products, customers, jobs, departments) Direct Costs Easily traced Indirect Costs Not easily traced (OH) These costs must be allocated to jobs or customers, etc. Common costs...
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10014_021910_18 - units produced) Relevant range: range of...

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