ACCY 207 Study Guide - Final Guide: Income Statement, Fixed Cost, Variable Cost
Document Summary
Prologue/chapter 1: 7 m/c (1 computational: financial vs. Variable increases and decreases in proportion to changes in. Fc per unit increases as activity level decreases and vice versa: mixed costs (semi-variable costs)= contains both variable and fixed cost elements. Select the 2 periods with the lowest and highest level of activity and use those costs: 2. Determine vc per unit: change in cost / change in activity level: 3. Determine total fc: y = a + bx: *cost formula, y = a + bx, traditional income statement vs. Moh costs for coming period/est. units in the allocation base for coming period: steps, 1. Estimate the total amount of the allocation base (the denominator) that will be required for next period"s estimated level of production: 2. Estimate the total fixed moh cost for the coming period and the variable moh cost per unit of the allocation base: 3.
