CPA BEC CH 53 Cost acct'g Part 1

Sum of DL & MOH (V & F)! It represents the costs to convert raw mat'ls into finished products.

Total cont margin / total sales

DM & DL

FC / Composite CMCCM is the weighted CM's added together.Note: A composite unit is based on da ex in da bk as the "package" made up of 1 unit of A, 3 units of B, & 4 units of C.

% markup on cost = % markup on selling price / 100% - % markup on selling price

(FC + desired NI) / Cont Marg Ratio

CCM = Sum(sales mix ratio for a product x cmr for the product)ex. 1/19 (50%) + 6/19 (25%) + 12/19 (33%)

When a company sells more than 1 product, a BE point can be determined for each product based on expected sales mix & the composite or combined cont marg!

MOS can be defined as the xs of budgeted (or actual) sales over the BE volume of sales. It states the amount by which sales can drop before losses begin to be incurred in an org.Total Sales - BE Sales = MOSMOS / Total Sales = MOS%

These represent fixed costs that arise from having PPE, & a functioning org! These costs remain even when the production volume is zero! Included is depr & LT lease pymts.

Beg Bal + RM, Labor, OH used = Avail to finish - Good Finished ( to FG's) = ending balance

They are inventoriable. They are DM, DL, VOH & FOH. Pretty much everything!