Managerial Accounting Ch. 3 Study Guide (4th ed)
Cost Behaviordescribing whether a cost changes when level of output changes.
Fixed Cost (FC)cost in total does not change as level of output changes. Draw graphs
Variable Cost (VC)co
Managerial Accounting-Ch. 2 Study Guide (4th ed)
Costthe amount of cash or cash equivalent sacrificed for goods and/or services that are
expected to bring a current or future benefit to the company. Cost is a dollar measure of
resources used to achieve a
Managerial AccountingChapter 5 Study Guide (4th ed)
Job Cost Accountingcosts are assigned to each job or batch. Costs are accumulated by job or
batch. Service companies are a typical example of users of this method.
Process Accountingused with large volum
Each method of separating a mixed cost into its fixed and variable components requires the
simplifying assumption of a linear cost relationship. Therefore, the expression of cost as an
equation for a straight line, as follows: Total cost
Managerial Accounting-Ch. 1 Study Guide (4th ed)
What is the difference between Financial Accounting and Managerial Accounting?
Financial is considered external because it deals with financial statementsthink about
who uses or requires them. Managerial is
Chapter 4 CVP Formulas (4th ed)
Some abbreviations you will need: VC is Variable Costs; UVC is Unit Variable Cost;
FC is Fixed Costs; UFC is Unit Fixed Cost; CM is Contribution Margin; UCM is Unit
Contribution Margin; USP is Unit Sales Price; BE is Break