Cost Accounting Terms and Definitions, Quizzes of Financial Accounting

Download Cost Accounting Terms and Definitions and more Quizzes Financial Accounting in PDF only on Docsity! TERM 1 Cost of Goods Sold DEFINITION 1 Cost of Goods Sold = Beginning Balance in Finished Goods + Cost of Goods Manufactured - Ending Balance in Finished Goods TERM 2 Unit Cost of Items Produced DEFINITION 2 Unit Cost of Items Produced = Total cost of production ---------- ---------- Total number of units produced TERM 3 Overhead Allocation Rate DEFINITION 3 Overhead Allocation Rate = Overhead Cost ------------ Allocation Base TERM 4 Predetermined Overhead Rate DEFINITION 4 Predetermined Overhead Rate = Estimated Total Overhead Cost ----------------------- Estimated Level of Allocation Base TERM 5 Estimate of Variable Cost DEFINITION 5 Estimate of Variable Cost= Change in Cost -------------- Change in Activity TERM 6 Total Cost (Regression Analysis) DEFINITION 6 Total Cost = Fixed Cost + (Variable Cost per unit X Activity level in units) TERM 7 Profit Equation DEFINITION 7 Profit = SP(x) - VC(x) - TFC SP= Selling price per unit VC = Variable cost per unit TFC = Total fixed cost x = Quantity of units produced and sold TERM 8 Contribution Margin DEFINITION 8 Profit =SP(x) - VC(x) - TFC Profit = Contribution margin per unit(x) - TFC Contribution Margin = difference between the selling price and variable cost per unit TERM 9 Contribution Margin Ratio DEFINITION 9 Contribution Margin Ratio = SP - VC -------- SP TERM 10 Break-Even Sales In Units DEFINITION 10 Break Even Sales in Units = Profit + Total Fixed Costs ---------- ----------- Weighted Average Contribution Margin per Unit