BUS-A 100 Lecture Notes - Lecture 14: Cash Flow, Forklift, Net Income
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Document Summary
Approximately how much cash will an investment generate before paying tax on the income. Approximately how much cash will an investment generate after paying tax. Marginal tax rate = the rate at which your next dollar of income will be taxed. Dm + dl +moh = product costs. Dm = direct materials (a wheel on a car) Dl = direct labor (wage of ppl on assembly line. All other manufacturing costs (property tax, insurance) Any cost = product cost or inventoriable cost. Fixed costs = fixed in total and don"t change regardless of volume produced. Variable cost = cost that is directly dependent on volume produced. Relevant range = the range of production in which the company expects to operate. Mixed costs = costs that have some fixed and some variable components. Step costs = costs that increase in a step manner rather than gradually.
