ACC 410 Chapter 1-4: ACC410 Chapters 1-4 Textbook Notes

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viridianhamster849

12 Feb 2012

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Gaap, and it helps managers to plan/control/measure performance. The so-called relevant range (ex: cost of leasing an airplane/month is fixed, regardless of the distance the airplane travelled during that month). For a fixed cost, the per unit cost is the same with the more you do. y a variable cost varies in proportion to the production lvl (ex: costs of fuel vary depending on the distance travelled). Total fixed costs. y contribution margin = total revenue total variable costs & the contribution. Margin/unit (cmu) = selling price/unit the variable cost/unit. Contribution margin is selling price variable costs; once you breakeven, contribution margin = profit. Fixed costs / cm = breakeven (units) & fc / cmr = breakeven (dollars). y. If we assume that the selling price and variable cost per unit are constant, then total revenue. = price * quantity, and total variable costs = variable cost/unit * quantity. V) / s; cm / selling price = cmr.

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ACC 410 Chapter 1-4: ACC410 Chapters 1-4 Textbook Notes

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