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A series of interrelated activities designed to generate revenue is know as what subprocess?
Revenue Process
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A series of interrelated activities designed to enable the company to generate revenue is know as what subprocess?
Expenditure process
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A series of interrelated activities designed to produce the goods a company sells is know as what subprocess?
Conversion Process
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A cost that does not change in total as the amount of the activity driver changes throughout the relevant range is known as what type of cost?
Fixed Cost
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A cost that changes in direct proportion to the change in the amount of activity driver throughout the relevant range is known as what type of cost?
Variable Cost
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A cost that varies, but not proportionately, to a change in activity throughout the relevant range is known as what type of cost?
Mixed Cost
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A revenue that changes in direct proportion to the change in the amount of activity driver throughout the relevant range is known as what type of revenue?
Variable Revenue
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A revenue that varies, but not proportionately, to a change in activity throughout the relevant range is known as what type of revenue?
Mixed Revenue
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A revenue that does not change in total as the amount of the activity driver changes throughout the relevant range is known as what type of revenue?
Fixed Revenue
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What is the span of operating activity that is considered normal for the company?
Relevant Range
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Assume the activity is measured as the number of packs produced: (Variable, Fixed, Mixed)
Cost of Fabric
Variable
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Assume the activity is measured as the number of packs produced: (Variable, Fixed, Mixed)
Rent on the factory building
Fixed
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Assume the activity is measured as the number of packs produced: (Variable, Fixed, Mixed)
Cost of utilities
Mixed
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Assume the activity is measured as the number of packs produced: (Variable, Fixed, Mixed)
Cost of leather for trim
Variable
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Assume the activity is measured as the number of packs produced: (Variable, Fixed, Mixed)
Cost of thread used to sew packs together
Variable
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Assume the activity is measured as the number of packs produced: (Variable, Fixed, Mixed)
Cost of shelving to store production supplies
Fixed
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Assume the activity is measured as the number of packs produced: (Variable, Fixed, Mixed)
Supervisor's salary
Fixed
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Assume the activity is measured as the number of packs produced: (Variable, Fixed, Mixed)
Cost of zippers
Variable
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Assume the activity is measured as the number of packs produced: (Variable, Fixed, Mixed)
Wages of sales personal (salary plus commission)
Mixed
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Assume the activity is measured as the number of packs produced: (Variable, Fixed, Mixed)
Cost of delivery vehicle
Fixed
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FOB- Destination
Seller pays shipping + title of goods will transfer when customer receives goods
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FOB- Shipping Point
Customer pays shipping + title of goods transfers right when goods are shipped
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Variable Cost Equation
VC= high cost - low cost ∕ high activity - low activity
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Fixed Cost Equation
low cost = FC + (variable cost x low activity)
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Total Cost Equation
TC = FC + (VC x z items)
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