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INTRODUCTION AND OVERVIEW PLANNING AND PERFORMANCE
Focusing on Customers
Chapter One Key Terms
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absorption cost activity-based costing activity-based management actual administrative costs amount analysis assets beginning inventory beneﬁts cash ﬂows chapter company’s Compute contribution margin conversion costs cost accounting cost allocation cost driver cost per unit costing system crates CVP analysis December 31 decision depreciation direct labor-hours direct materials division efﬁciency employees ending inventory equivalent units estimated evaluation example FIFO ﬁnd ﬁnished Finished Goods Inventory ﬁrm ﬁrst ﬁxed costs ﬂexible full-absorption costing gross margin income statement increase incurred investment job costing joint costs machine-hours manufacturing costs manufacturing overhead marketing and administrative master budget materials costs method operating proﬁt organization overhead costs percent performance present value price variance process costing process inventory production costs proﬁtable purchased Required Sales revenue SELF-STUDY QUESTION selling service departments sold spoilage standard cost tax shield theory of constraints Total costs transfer price variable costs Variable manufacturing variable overhead volume