Accounting Management

Methods of Segregating Mixed Costs Mixed costs contain elements of both fixed and variable cost behavior. There are numerous methods are used for segregating mixed…

Variable Costing is a managerial accounting cost concept. Under this method, manufacturing overhead is incurred in the period that a product is produced. This addresses…

Absorption Costing means that all of the manufacturing costs are absorbed by the units produced. In other words, the cost of a finished unit in…

Fixed manufacturing overhead costs are monthly or annual expenses that remain constant regardless of production volume or the total number of our production equipment was…

Fixed Costs create difficulties in Costing Units of products Fixed costs can create difficulties if it becomes necessary to express the costs on a per…

All Future Costs are not always Relevant Cost Relevant costs are those costs that will make a difference in a decision. Future costs are relevant…

Product cost refers to the costs used to create a product. These costs include direct labor, direct materials, consumable production supplies, and factory overhead. The…

To accurately assess the profitability of a business plan, managers must distinguish between fixed and variable costs. Planners should then further dissect these figures, paying…

Elements of mixed costs: Mixed costs contain elements of both fixed and variable cost behavior. As with step costs, the fixed elements is determined by…

Distinguish between Variable, Fixed, and Mixed Cost Variable Cost: Changes in total, in direct proportion to changes in the level of activity. The total cost…