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Accounting Midterm - Coggle Diagram
Accounting Midterm
Three cost classification criteria
Conversion Cost
Direct Labour + Manufacturing Overhead
Cost of converting raw mats to a product
Cost of goods Manufactured Schedule
Functional
Product Costs
Costs tagged on the product that follows it
Period Costs
Costs that go directly to Income statement
Prime Cost
Direct Materials + Direct Labour
Direct manufacturing Costs
Traceability
Direct Costs
Indirect Costs
Cost Behaviour
Variable Costs
Direct Labour
Direct Mats
Variable part of OH
Fixed Costs
Mixed Costs
Semi-variable cost
High Low Method
CVP Analysis
Equation Method
UCM and CM ratio
Weighted Contribution Margin and Ratio
Cost structure
Sales Mix
Operating Leverage (DOL)
Graphical Method
Contribution Margin
Contribution Margin per Unit = Unit Selling Price - Unit Variable Costs
Contribution Margin per Unit / Unit Selling Price = Contribution Margin Ratio
Break-even point
Incremental Analysis
Sunk Cost
Relevant Cost
Opportunity Cost
Decision Contexts
Difference Between Managerial and Financial Accounting
MA
For internal users
Makes internal reports as needed
For special-purposes for specific decisions.
No need for verification process
Very detailed for subunits
FA
For external users
Makes financial reports quarterly/annually
For general purporses
Needs verification process
Condensed to the whole business
Similarities
Economic events of business
Require events to be quantified and communicated
Job Order Costing
Accumulation
Assignment
Applied OH
Predetermined rate
Over applied OH
Proration Method
CGS Method
Under applied OH
What is cost and cost object?
Cost
Economic resource given up to accomplish an objective
Cost Object
Anything that we want to calculate a cost (A product)
What is Managerial Accounting?
Provides economic and financial info for managers and other internal users