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A cost driver is whatever activity is causing the cost to occur.
The three ‘E’s’ are:
The prime cost is the total of the direct costs of a unit.
An abnormal loss is the excess of the actual loss over the normal (or expected) loss.
Good information should be:
The target cost is the maximum cost we can allow in order to achieve the target level of profitability based on a pre-determined selling price.
It means that 75% of the changes in y are explained by changes in x.
A purchase requisition form is prepared by the department that requires the material and is sent to the purchasing department.
Co represents the cost of placing one order.
A stepped fixed cost is one that is fixed in total within a certain level of activity, but where once an upper limit of activity is reached then a new higher level of fixed cost occurs.
If there is perfect negative correlation, then r will equal -1.
Prevention costs (the costs of improving the quality of the production process)
Appraisal costs (the costs of quality control checks)
Internal failure costs (the costs of re-working; the costs of rejects)
External failure costs ( the costs of delivering poor quality to the customer – e.g. replacements, repair work)
n is the number of pairs of observations
Each item in the population has an equal chance of being selected.
‘Get it right first time’ – i.e. good quality production – no re-working, no rejects
Capital expenditure is the acquisition of non-current assets (which appear on the Statement of Financial Position)
Revenue expenditure is the payment of running expenses (which appear on the Income Statement)
Direct labour costs are directly involved in the making of products – the basic pay plus overtime premium on specific jobs
Indirect labour costs are all other labour costs – general overtime premiums, bonus payments, and the cost of indirect workers (e.g. canteen, maintenance)
Bottom-up budgeting is where lower level managers are involved in the budget process – they prepare budgets for their departments which are then checked and co-ordinated by higher level management.
The operating statement shows why the actual profit differs from the budgeted profit.
The interest cover = profit before interest and tax / interest
ROI = profit / capital invested
Are all the Chapters mixed in all the set or is it chapter-wised?
External failure costs are costs of delivering poor quality to the ______? I am not able to view the full answer! Please help!
It is very good like passcards very interesting.Keep it up good appraoch
flash cards are a great deal of revision especially when you are preparing for the final exam on a short space of tym
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