Management Accounting

1. fixed cost = planned unit cost under certain conditions

2. LIFO FIFO

3. prime cost = material + labour = aka direct cost 直接成本

4. marginal cost = variable costs = p.c. + variable overheads + other direct expenses 直接成本+ 可变成本

5. absorption cost = total production cost = m.c. + fixed overheads (fpc) 边际 + 固定成本

6. OAR = fpc / budgeted production.

e.g. $100 / (budgeted) 20 units = $5/unit

overhead absorbed = $5 * (made) 12=$60

if UNDER actual overheads of $65, UNDER-ABSORBED (actual > budget)

if OVER overheads of $55, OVER-ABSORBED (actual < budget)

7. Contribution = revenue - m.c.

fixed budget = pre-production / 原计划

flexed budget = 使用原计划的单位成本来计算新计划，注意fixed cost不调整

Flexible = actual - flexed (F for Favourable, A for Anticipated). See sample in the end of "purpose of costing" / 实际结果 - 新计划的预算 = 差值