# equation - FC The change in fixed costs relative to a given...

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Accounting 202 : Reference equations Basic concepts NI Sales Cost_of_sales Operating_exp Income_taxe Profit Revenues Costs Profit Revenues Production_costs Nonproduction_costs P R ( ) DPC IPC NPC Cost concepts and classification TPC DPC IPC TPC ( ) DM DL OH CGM TPC WIP CGS TPC WIP FGI TPC Prod_activity_cost 1 Prod_activity_cost 2 ... Linear cost function estimation COST( ) X . VC X FC COST . C high C low X high X low X FC Overhead application

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OHR BOH BAL OHA AAL OHA . OHR AAL TPC DM DL OHA TC DeptOHA DM DL . OHR Dept1 AAL 1 . OHR Dept2 AAL 2 TC abc DM DL . OHR Act1 AAL 1 . OHR Act2 AAL 2 Cost-volume-profit analysis P bt R TVC FC P at . ( ) R TVC FC ( ) 1 TR P bt ( ) . SP X ( ) . VC X FC . ( ) SP VC X FC P bt . ( ) CM X FC . ( ) CMR R FC CMR TCM R R TVC R . ( ) SP VC X . ( ) SP X CM Unit SP VC CM WA . SP 1 VC 1 % 1 . SP 2 VC 2 % 2 ... Relevant revenues and costs
RC i . VC i X i FC i where i is the index for the option under consideration. FC i FC i
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Unformatted text preview: FC The change in fixed costs relative to a given option is the difference between the level of fixed costs that would result from choosing the option i less the level of fixed costs that would result from not choosing the option. ∆ P i ∆ R i RC i ∆ R i . VC i X i ∆ FC i Capital budgeting NPV bt Investment . PVAF , n i ( ) ∆ ANCF . PVF , n i NCF n NPV at Investment at . PVAF , n i ∆ ANCF at . PVF , n i NCF , n at NCF at . NCF bt ( ) 1 TR . EXP Noncash ( ) TR . REV Noncash ( ) TR Gain( ) loss Taxable Proceeds NBV Proceeds ( ) Cost AD ν...
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equation - FC The change in fixed costs relative to a given...

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