Contribution margin Study guides, Class notes & Summaries

Why is Cost Accounting Important? - ANSWERSBecause reimbursement is predetermined, management must focus primarily on finding way to manage costs, so cost accounting is critical. Cost information is useful to a variety of key decision-makers in a healthcare organization. Incremental or Marginal Cost - ANSWERSThis is when costing decisions are being made with the understanding that there is a difference in cost at two different activity or volume levels. Contribution Margin - ANSWERSThis is...

Contribution Margin - Answer- Difference between marginal revenue and marginal cost. Break-even point - Answer- Level of sales volume of a product producing the exact amount of contribution margin needed to cover fixed costs. Overhead - Answer- Indirect Costs Activity-based costing (ABC) - Answer- Method of determining product costs using cost drivers or activity measures, which cause indirect costs to be incurred. Three main types of Cost standards. - Answer- Predetermined (Syntheti...

INTEGRATED REVIEW 2: Management Advisory Services (MAS) #2 | Cost-Volume-Profit Analysis cvpp 1. Total unit cost A. needed for determining product information B. irrelevant in marginal analysis C. independent cost system D. relevant for cost-volume-profit analysis (CPAR Reviewer, 2018) 2. The rate or amount that sales may decline before losses are incurred is called: A. residual income rate B. variable sales ratio C. sensitive level of income D. margin of safety (CPAR Reviewer,...

MAC3702 Assignment 1 (DETAILED ANSWERS) Semester 1 2024 - DISTINCTION GUARANTEED - DISTINCTION GUARANTEED - DISTINCTION GUARANTEED Answers, guidelines, workings and references ............ Question 1 Complete Mark 1.00 out of 1.00 Papraika Limited (also known as “Papraika Stores”) is the largest non-food retailer in South Africa and is listed on theJohannesburg Stock Exchange (JSE). The company is the leading retailer of clothing, home appliances, stationery,cosmetics, accessories and ce...

Why is cost accounting so important in health care? correct answer: Though costs have such a minor role in deermining prices, cost accounting is very important in a healthcare organization. Because reimbursment is predetermined, managment must focus primarily on finding ways tomanage cosgts, so cost accougtning is critical. Cost information is uselful to a variety of key decisionmakers in a healthcare organization. Different concepts of cost are required for different purposes. Thefore it is im...

I. Questions 1. The total “contribution margin” is the excess of total revenue over total variable costs. The unit contribution margin is the excess of the unit price over the unit variable costs. 2. Total contribution margin: Selling price - manufacturing variable costs expensed - nonmanufacturing variable costs expensed = Total contribution margin. Gross margin: Selling price - variable manufacturing costs expensed - fixed manufacturing costs expensed = Gross margin. 3. A company ...

A cell reference that remains constant when a formula is pasted into a new cell - Answer-Absolute Cell Reference An accounting record in which the results of transactions accumulated; shows increases, decreases, and a balance. - Answer-Account A system for providing quantitative, financial information about economic entities that is useful for making sound economic decisions. Accounting provides the means of recording and communicating business activities and the results of those activitie...

Contribution Margin - ANSWERSDifference between marginal revenue and marginal cost. Break-even point - ANSWERSLevel of sales volume of a product producing the exact amount of contribution margin needed to cover fixed costs. Overhead - ANSWERSIndirect Costs Activity-based costing (ABC) - ANSWERSMethod of determining product costs using cost drivers or activity measures, which cause indirect costs to be incurred. Three main types of Cost standards. - ANSWERSPredetermined (Synthetic), N...

business acumen certification exam 2023 questions and answers Excessively high employee counts in the balance scorecard accounts could indicates: higher Guest Service and Lower GOP; because a lot of expenses decrial GOP The operating results shown on monthly summary profit and loss statement: changes balance sheet and cash flow statement. Because changes current asset and cash. An online discounted channel is called opaque Which formula is the formula for the balance sheet Assets= Liab...

Contribution Margin Correct Answer Difference between marginal revenue and marginal cost. Break-even point Correct Answer Level of sales volume of a product producing the exact amount of contribution margin needed to cover fixed costs. Overhead Correct Answer Indirect Costs Activity-based costing (ABC) Correct Answer Method of determining product costs using cost drivers or activity measures, which cause indirect costs to be incurred. Three main types of Cost standards. Correct Answe...