Garrison, Chapter 1, Managerial Accounting Questions and Correct Answers the Latest Update and Recommended Version
5 views 0 purchase
Course
Managerial Accounting
Institution
Managerial Accounting
Activity Base
→ A measure of whatever causes the incurrence of a variable cost. For example, the total
cost of surgical gloves in a hospital will increase as hte number of surgeries increases.
Therefore, the number of surgeries in the activity base that explaines th total cost of
surgical ...
Garrison, Chapter 1, Managerial
Accounting Questions and Correct
Answers the Latest Update and
Recommended Version
Activity Base
→ A measure of whatever causes the incurrence of a variable cost. For example, the total
cost of surgical gloves in a hospital will increase as hte number of surgeries increases.
Therefore, the number of surgeries in the activity base that explaines th total cost of
surgical gloves.
Administrative Costs
→ All executive, organizational, clerical costs associated with the general management of
an organization rather than with manufacturing or selling.
Committed fixed Costs
→ Investments in facilities, equipment, and basic organizational structure that can't be
significantly reduced even for short periods of time wihtout making fundamental
changes.
Common costs
→ A cost that is incurred to support a number of cost objects but that cannot be traced to
them individually.
Contribution Approach
→ An income statement format that organizations costs by their behavior. Costs are
separated into variable and fixed categories rather than being separated into
product and period costs for external reporting purposes.
→ The amount remaining from sales revenues afer all variable expenses have been
deducted.
Conversion Cost
→ Direct Labor Cost Plus Manufacturing Overhead Cost
Cost Behavior
→ The way in which a cost reacts to changes in the level of activity
Cost Structure
→ The relative proportion of fixed, variable, and mixed costs in an organization.
Differential Costs
→ A future costs that differs between an two alternatives
Differential Revenue
→ A future revenue that differs between two alernatives
Direct Cost
→ A cost that can be easily an conveniently traced to a specified cost object.
Direct Labor
→ Factory labor costs that can be easily traced to individual units of product..
Discretionary Fixed Costs
1|Page| GradeA+ | 2 0 0 2 5
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TestTrackers. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
