Essay

Management Accounting

Essay specific features

Essay content:

To calculate the unit cost of the fixed variable (building rent), divide the total fixed cost ($9000) by the total number produced (1000). The fixed unit cost when 1000 units are sold is $9 (9000 / 1000 = 9), but it changes to $1.125 when 8000 hamburgers are sold (9000 / 8000 = 1.125). Table 1 ? Unit Costs 1000 Annual Units Sold 6000 Annual Units Sold 8000 Annual Units Sold Raw Materials (cost/hamburgers) Variable cost $...
displayed 300 characters

Table 2 identifies the total annual costs based on units sold. The total annual cost of the raw materials (cost for hamburgers) increases and the number of annual units sold increases. This is calculated by multiplying the unit cost by the total annual units sold. Notice the fixed cost (building rent) is not affected by the sales volume so the cost remains constant...
displayed 300 characters

General issues of this essay:

Related essays:

• GE's ~ew' Washer Cleans l!p ..\ppliance Park

    1 pages,   73 words
   
   
• Management Accounting

    2 pages,   316 words
   
   
• Managerial Accounting

    2 pages,   467 words
   
   
• Roles and Responsibilities of Financial and Managerial Accounting Managers

    2 pages,   374 words
   
   
• The Timing and Mechanics of Accounting

    1 pages,   244 words
   
   
• What is Management Accounting?

    1 pages,   272 words
   
   
• What is management accounting?

    2 pages,   381 words