Term
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Definition
| Revenues - COGS - Period Costs (EBIT) |
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Term
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Definition
| Direct materials costs + Direct manufacturing labor costs |
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Term
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Definition
| Direct manufacturing labor costs + Manufacturing overhead costs |
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Term
|
Definition
| Revenues – Variable Costs |
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Term
| Contribution Margin per unit |
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Definition
| Selling price - Variable cost per unit |
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Term
| Contribution Margin Percentage |
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Definition
| Contribution margin per unit / Selling Price |
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Term
| Breakeven Number of Units |
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Definition
| Fixed costs / Contribution margin per unit |
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Term
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Definition
| Fixed costs / Contribution margin % |
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Term
| Quantity of Units Required to be sold |
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Definition
| (Fixed costs + Target operating income) / (Contribution margin per unit) |
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Term
|
Definition
| Operating income - Income taxes |
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Term
|
Definition
| (Target operating income) * (1 - Tax rate) |
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Term
|
Definition
| Target net income / (1 - Tax rate) |
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Term
| Margin of Safety (revenues) |
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Definition
| Target sales - Breakeven Sales |
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Term
|
Definition
| Budgeted (or actual) sales quantity - Breakeven quantity |
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Term
| Margin of Safety Percentage |
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Definition
| Margin of safety in dollars / Budgeted (or actual) revenues |
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Term
| Degree of Operating Leverage |
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Definition
| Contribution margin / Operating income |
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Term
| Breakeven point in bundles |
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Definition
| Fixed costs / Contribution margin per bundle |
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Term
| Contribution margin of the bundle |
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Definition
| Contribution margin of the bundle / Revenue of the bundle |
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Term
| Budgeting Manufacturing Overhead Rate |
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Definition
| Budgeted Manufacturing Overhead Costs / Budgeted Total Quantity of Cost-Allocation Base |
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|
Term
| Budgeted-Indirect cost rate |
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Definition
| Budgeted annual indirect cost/(divided by) budgeted annual quantity of the cost allocation base |
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Term
|
Definition
| Costs of inputs ÷ quantity of output |
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Term
|
Definition
| (Actual price of input - Budgeted price of input) x Actual Quantity of output |
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Term
|
Definition
| (Actual quantity of input used - Budgeted quantity of input allowed for actual output) x Budgeted price of input |
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