Managerial accounting pdf download garrison 15th edition

Discover other editions. Buy Now. Summary of Managerial Accounting From publisher: As the long-time 1 best-seller, Garrison has helped guide close to 3 million students through managerial accounting since it was first published. Related Books. Fixed cost: The total fixed cost is constant large steps, rather than being absolutely fixed at within the relevant range.

The average fixed one level for all ranges of activity. Mixed cost: A mixed cost contains both points to determine a cost formula. These two variable and fixed cost elements. Total fixed costs remain constant as volume increases. Total variable costs increase as volume increases. Cost behavior: Cost behavior refers to the way in which costs change in response to changes in a measure of activity such as sales volume, production volume, or orders processed.

Relevant range: The relevant range is the range of activity within which assumptions about variable and fixed cost behavior are valid. Examples of activity bases include units produced, units sold, letters typed, beds in a hospital, meals served in a cafe, service calls made, etc. Such costs arise from annual decisions by management to spend on certain fixed cost items, such as advertising, research, and management development.

A committed fixed cost has a long planning horizon—generally many years. The traditional approach organizes costs by function, such as production, selling, and administration. Within a functional area, fixed and variable costs are intermingled. An opportunity cost is the potential benefit that is given up when one alternative is selected over another.

A sunk cost is a cost that has already been incurred and cannot be altered by any decision taken now or in the future. For example, the alternatives might consist of purchasing one machine rather than another to make a product.

The difference between the fixed costs of purchasing the two machines is a differential cost. Direct materials Sales commissions Number of units sold d Variable cost per unit sold a Total fixed manufacturing cost see requirement 1 a Total fixed manufacturing cost see requirement Variable overhead per unit a Selling price per unit Direct materials per unit Like this: Like Loading Leave a Reply Cancel reply Enter your comment here Fill in your details below or click an icon to log in:.

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