1.26.11 - Ex Manufacturing Overhead Differential Cost&...

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Jan 26, 2011 Chapter 2 Variable Costs -Change when activity changes Ex. Total Texting Bill-based on how many texts you sent Fixed Costs -Remain unchanged when activity changes Ex. Rent Cost In Total Per Unit Variable Fixed p.60 Ex. 2-6 3. Fixed 4. Variable 5. Fixed 6. Variable 7. Fixed 8. Variable 9. Variable-more we sell the more shipping costs 10. Fixed – bc cost of leasing it stays the same bc we’re still going to have to pay the rent. Direct Costs -easily traced to a unit Ex. Direct materials Indirect Cost -cannot be easily and conveniently traced to a unit produced.
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Unformatted text preview: Ex. Manufacturing Overhead Differential Cost & Revenue Opp. Costs-The potential benefit that is given up when one alternative is selected over another Ex. If you were not attending college, you could be earning $15,000 per year. Your opp cost for attending college is $15,000 per year. Sunk Costs-these costs have already been incurred and cannot be changed now or in the future. Ex. Suppose that you could sell your car for $5,000 is that a sunk cost?-No Going to Portland Example-The cost of concert ticket-Not Relevant...
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This note was uploaded on 02/28/2012 for the course ACCT 2361 taught by Professor Severance during the Spring '08 term at Texas State.

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