Management Accounting (ACC2022H)

Contribution Margin (CM) per Unit: C M = Selling Price per Unit − Variable Cost per Unit CM=Selling Price per Unit−Variable Cost per Unit Contribution Margin Ratio (CMR): C M R = Contribution Margin per Unit Selling Price per Unit CMR= Selling Price per Unit Contribution Margin per Unit ​ Break-even Point in Units: Break-even Units = Fixed Costs Contribution Margin per Unit Break-even Units= Contribution Margin per Unit Fixed...

Definition of standard costing: Explaining what standard costs are and their role in budgeting and cost control. Types of standards: Overview of ideal vs. attainable standards. Setting standards: How to establish direct material, direct labor, and overhead standards. Variance analysis: Explaining price, quantity, labor, and overhead variances, including formulas for calculating each. Favorable vs. unfavorable variances: Interpreting the meaning of variances and their impact on financial perf...

Fixed and variable costs: Definitions and examples. Contribution margin: Calculating and interpreting the contribution margin per unit and ratio. Break-even analysis: Finding the break-even point in units and dollars. Target profit analysis: How to calculate the required sales volume to meet a profit target. Margin of safety: Understanding how far sales can drop before the company reaches its break-even point. CVP assumptions and limitations: Simplifications made when applying CVP analysis....