Step- Wise Costs a.k.a. stair-step cost, has a step pattern in costs such as adding a shift of workers Cost- Volume- Profit (CVP) Analysis A planning method that includes predicting the volume of activity, the costs incurred, sales earned, and profits received Mixed Costs Costs that include both fixed and variable cost components. Shipping An example of a variable cost Maintenance An example of a mixed cost Revised Break- Even Point in Dollars = revised fixed costs / revised contribution margin ratio Contibution Margin (Definition) This is what is left over to cover fixed costs after sales. Fixed Costs Costs that do not change when the volume of activity changes (within a relevant range) Revised Break- Even Point in Do Unit Sales at Target Income =(fixed costs + target income) / contribution margin per unit Contribution Margin (Formula) = Sales - Variable Costs Break- Even Point in Units = fixed costs / contribution margin per unit Margin of Safety (in percent) =(expected sales - break- even sales) / expected sales Variable Costs Costs that change in proportion to changes in volume of activity Add/Drop a Warehouse An example of a step- wise cost Dollar Sales at Target Income = (fixed costs + target income) / contribution margin ratio Direct Labor An example of a variable cost Revised Margin of Safety = (expected sales - break even sales) / expected sales Break- Even Point in Dollars = fixed costs / contribution margin ratio Contribution Margin Ratio =contribution margin per unit / selling price per unit OR = contribution margin / sales Contribution Margin Per Unit = selling price per unit - varaiable costs per unit Property taxes An example of a fixed cost Add/Drop a Sales Region An example of a step- wise cost Straight- Line Depreciation An example of a fixed cost Step- Wise Costs a.k.a. stair-step cost, has a step pattern in costs such as adding a shift of workers Cost- Volume- Profit (CVP) Analysis A planning method that includes predicting the volume of activity, the costs incurred, sales earned, and profits received Mixed Costs Costs that include both fixed and variable cost components. Shipping An example of a variable cost Maintenance An example of a mixed cost Revised Break- Even Point in Dollars = revised fixed costs / revised contribution margin ratio Contibution Margin (Definition) This is what is left over to cover fixed costs after sales. Fixed Costs Costs that do not change when the volume of activity changes (within a relevant range) Revised Break- Even Point in Do Unit Sales at Target Income =(fixed costs + target income) / contribution margin per unit Contribution Margin (Formula) = Sales - Variable Costs Break- Even Point in Units = fixed costs / contribution margin per unit Margin of Safety (in percent) =(expected sales - break- even sales) / expected sales Variable Costs Costs that change in proportion to changes in volume of activity Add/Drop a Warehouse An example of a step- wise cost Dollar Sales at Target Income = (fixed costs + target income) / contribution margin ratio Direct Labor An example of a variable cost Revised Margin of Safety = (expected sales - break even sales) / expected sales Break- Even Point in Dollars = fixed costs / contribution margin ratio Contribution Margin Ratio =contribution margin per unit / selling price per unit OR = contribution margin / sales Contribution Margin Per Unit = selling price per unit - varaiable costs per unit Property taxes An example of a fixed cost Add/Drop a Sales Region An example of a step- wise cost Straight- Line Depreciation An example of a fixed cost
(Print)
a.k.a. stair-step cost, has a step pattern in costs such as adding a shift of workers
A planning method that includes predicting the volume of activity, the costs incurred, sales earned, and profits received
Costs that include both fixed and variable cost components.
An example of a variable cost
An example of a mixed cost
= revised fixed costs / revised contribution margin ratio
This is what is left over to cover fixed costs after sales.
Costs that do not change when the volume of activity changes (within a relevant range)
Revised Break-Even Point in Do
=(fixed costs + target income) / contribution margin per unit
= Sales - Variable Costs
= fixed costs / contribution margin per unit
=(expected sales - break-even sales) / expected sales
Costs that change in proportion to changes in volume of activity
An example of a step-wise cost
= (fixed costs + target income) / contribution margin ratio
An example of a variable cost
= (expected sales - break even sales) / expected sales
= fixed costs / contribution margin ratio
=contribution margin per unit / selling price per unit OR = contribution margin / sales
= selling price per unit - varaiable costs per unit
An example of a fixed cost
An example of a step-wise cost
An example of a fixed cost
