BSNS 115 - MANAGEMENT ACCOUNTING EXAM QUESTIONS
AND ANSWERS WITH COMPLETE SOLUTIONS GRADED A++
direct cost
expenses can be directly tied to the production of a good
indirect cost
like overhead expenses that cant be traced to one object e.g rent
sunk cost
a cost that has already incurred and cannot be recovered
relevant cost
a cost that should be considered when making decisions
fixed cost
a cost that does not change, no matter how much of a good is produced
variable cost
a cost that rises or falls depending on how much is produced
contribution margin
measures how profitable a product is to produce
contribution margin formula
Sales - Variable Costs
cm ratio
CM/Sales
unit cm
AND ANSWERS WITH COMPLETE SOLUTIONS GRADED A++
direct cost
expenses can be directly tied to the production of a good
indirect cost
like overhead expenses that cant be traced to one object e.g rent
sunk cost
a cost that has already incurred and cannot be recovered
relevant cost
a cost that should be considered when making decisions
fixed cost
a cost that does not change, no matter how much of a good is produced
variable cost
a cost that rises or falls depending on how much is produced
contribution margin
measures how profitable a product is to produce
contribution margin formula
Sales - Variable Costs
cm ratio
CM/Sales
unit cm
