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AMAC Revision
- Activity Based costing is used to
- A cost driver rate is calculated by
- Activity Based costing will produce more accurate costings but
- An advantage of ABC is that it will provide a
- If selling prices are fixed, then it may be necessary to calculate the maximum that can be paid for direct costs
- Profit margin is calculated by Profit/Revenue and sales =
- Mark-up is when selling price is calculated by adding a % to cost, and sales =
- cost pool/cost driver
- may be difficult and expensive to implement
- include overheads in unit cost
- much better insight into what causes (drives) OH costs
- 100%
- This is known as Target Costing
- 100% + profit %
AMAC Revision (Answer Key)
- Activity Based costing is used to
- A cost driver rate is calculated by
- Activity Based costing will produce more accurate costings but
- An advantage of ABC is that it will provide a
- If selling prices are fixed, then it may be necessary to calculate the maximum that can be paid for direct costs
- Profit margin is calculated by Profit/Revenue and sales =
- Mark-up is when selling price is calculated by adding a % to cost, and sales =
- cost pool/cost driver
- may be difficult and expensive to implement
- include overheads in unit cost
- much better insight into what causes (drives) OH costs
- 100%
- This is known as Target Costing
- 100% + profit %
When you're ready to print, just click this button: Make Print-Friendly