Summary: Samenvatting Fidm

Study material generic cover image
  • This + 400k other summaries
  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Discover Study Smart
Remember faster, study better. Scientifically proven.
Trustpilot Logo

Read the summary and the most important questions on Samenvatting FIDM

  • 1 Eigen flashcards lecture 1, 2, 3

    This is a preview. There are 18 more flashcards available for chapter 1
    Show more cards here

  • Indirect costs are related to a particular cost object but cannot be traced to it because

    - cost element is shared among cost objects (common costs)
    - physically impossible to trace
    - not cost effective to trace
  • Criticism traditional allocation method

    - Assumes all overhead is volume related
    - Organization-wide or departmental rates all related to single activity measure
    - Departmental focus, not process focus
    - Focus on costs incurred, not cause of costs
  • Over-absorbed overhead/over-recovery of overhead

    Actual overhead < absorbed overhead
  • Cost allocations act as

    an internal tax system
  • Joint costing: Physical measurement method

    Determine weighing of joint cost allocated accordingly with production in kg
  • Joint costing: Sales value at split-off method

    Determine weighing of joint cost allocated accordingly with sales value
  • Variable costing (=direct costing/marginal costing)

    Excludes fixed costs from product costs and writes them off in the year that the costs are incurred.
    Operating income = sales x (price - full costs) + (actual production - normal production) x fixed OH rate
  • Dysfunctional effect under absorption costing:

    - Managers can defer recognition of fixed manufacturing costs by building ending inventory
    - Incentive to over-produce
  • For which type of costing does level of sales determine break-even point

    Variable costing
  • Examples batch-related activities

    set-ups, purchase ordering and first-item inspection activities

To read further, please click:

Read the full summary
This summary +380.000 other summaries A unique study tool A rehearsal system for this summary Studycoaching with videos
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart