ADM2341 Chapter 6 Cost Behaviour

Variable variable this is to be expected because each

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: e data points to provide estimates. provide estimates. provide provide Least-squares regression provides the most Least-squares regression provides the most Least-squares Least-squares accurate estimate because it uses all the data accurate estimate because it uses all the data points. [Skip Appendix 6A] points. [[Skip Appendix 6A] [Skip Skip LO 2 6-45 The Contribution Format Let’s put our knowledge of cost behaviour to work by preparing a contribution format income statement. LO 3 6-46 The Contribution Format Sales Revenue Less: Variable costs Contribution margin Total $ 100,000 60,000 $ 40,000 Less: Fixed costs Net operating income Unit $ 50 30 $ 20 30,000 $ 10,000 The contribution margin format emphasizes cost The contribution margin format emphasizes cost The behaviour. Contribution margin covers fixed behaviour. Contribution margin covers fixed costs and provides for income. costs and provides for income. costs costs LO 3 6-47 Uses of the Contribution Format The contribution income statement format is use...
View Full Document

This note was uploaded on 01/27/2014 for the course ADM 2341 taught by Professor Managerialaccounting during the Winter '07 term at University of Ottawa.

Ask a homework question - tutors are online