ARBUS102 Final: Final Managerial Accounting

• School: University of Waterloo
• Department: Arts and Business
• Course: ARBUS102
• Professor: Peter Blake

Document Summary

Prescribe financial information to allow outsiders to make money. Whatever info. needed so insiders/company can make money. Variable costs: cost where the total dollar amount varies in direct proportion to changes in a level of activity (almost always sales volume) E. g. direct materials (wood to make tables), direct labour (guy putting wood together for table) Variable costs on a per unit are constant over a relevant range. These costs should be thought of on a per unit basis (how much do i spend on wood for every desk) Fixed costs: cost where the total dollar amount stays fixed regardless of changes in activity level (sales volume) E. g. supervisor salaries, building rent, straight-line depreciation, maintenance, insurance. These costs should be thought of in terms of total dollars per period basis. Fixed costs: fill in the blanks below*** (know for exam) Direct costs: easily traceable to a specific object, department, or location. Indirect costs: common to multiple objects/products, departments, or locations.