ACCT 2001 : Acct 2000 Final Review
Document Summary
Fall 2010 problems at ends of chapters study guide in back. 15 total qs on old stuff, all multiple choice . Committed cost fixed costs that are locked in because of previous management decisions, no control over short run. Mixed costs change in total but not proportionally with changes in activity opportunity cost working vs attending college differential cost - difference in cost between 2 alternatives. Sunk costs costs that have already been incurred and will not be changed by future decisions. Cost-volume-profit analysis (cvp) study of the effect of changes in costs and volume of company"s profits; sales = variable + fixed + net income. Contribution margin amount of revenue remaining after deducting variable cost. Contribution margin per unit = unit selling price unit variable cost. Contribution margin ratio the percentage of each dollar of sales that is available to contribute to net income. Contribution margin ratio = contribution margin per unit / unit selling price.
