Chapter 21 and 22 study guide

Chapter 21 and 22 study guide - Break even with 2 products...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Study Guide Chapter 21 Definitions: Fixed cost Variable cost Mixed costs Contribution margin Margin of Safety What are the 3 cost behavior classifications? Determine Fixed cost vs. variable cost. PER UNIT what goes down when production increases? In TOTAL what increase when production increases? IN TOTAL what remains same regardless of levels of production? For example - Which of the following describes the behavior of the fixed cost per unit? a. increases with increasing production b. remains constant with changes in production c. decreases with decreasing production d. decreases with increasing production What changes cause break even to increase/decrease? What are the assumptions of Cost-Volume-Profit analysis? Problems VERY SIMILAR TO HW - BE ABLE TO WORK HW FROM A BLANK SHEET OF PAPER WITH NO NOTES !! High low method – determine VC and FC Break even in units Break even + Target income
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Break even with 2 products sales mix Analysis of change - if units increase what will new net income be? If sales price decreases, what will new contribution margin be? Remember to calculate AS IS first, then run changes through and compare. Study Guide Chapter 22 Definitions: Budget goal conflict budgetary slack zero-based budgeting continuous budgeting static budget flexible budget responsibility center Advantages of flexible budget Disadvantages of static budget Which budget is prepared first? Reasons to plan for capital expenditures Problems; CAN YOU WORK SIMILAR HW PROBLEMS FROM A BLANK SHEET OF PAPER?? Prepare a sales budget Prepare cash receipts budget (Remember the time lag is for CREDIT sales only) Prepare a production budget - memorize how to set it up! Remember to account for beg. and ending inventory!!...
View Full Document

Page1 / 2

Chapter 21 and 22 study guide - Break even with 2 products...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online