Key Concepts in Managerial Accounting, Quizzes of Financial Accounting

Download Key Concepts in Managerial Accounting and more Quizzes Financial Accounting in PDF only on Docsity! TERM 1 Total Contribution Margin DEFINITION 1 Sales Revenue- Variable Cost TERM 2 Per Unit Contribution Margin DEFINITION 2 Selling price per unit - variable cost per unit TERM 3 CM ratio DEFINITION 3 CM/ total sales..... CM per unit/ sales rev per unit TERM 4 BE Point in sales dollars DEFINITION 4 0= Sales- VC - FC..... Sales - (VC ratio x sales) - FC TERM 5 When to buy from outside supplier DEFINITION 5 avoidable costs + opportunity cost > outside purchase price TERM 6 When to make instead of buying from outside supplier DEFINITION 6 avoidable cost + opportunity cost < outside purchase price TERM 7 When to keep a product DEFINITION 7 avoidable FC + opportunity cost < Lost CM TERM 8 When to drop a product DEFINITION 8 avoidable FC + opportunity cost > lost CM TERM 9 When to accept a special order DEFINITION 9 actual selling price of special order > minimum selling price of special order TERM 10 When to deny a special order DEFINITION 10 actual selling price of special order < minimum selling price of special order