Marginal Costing & CVP Analysis (Leaving Cert Accounting): Flashcards

Only includes variable costs when valuing products

$\text{SP} - \text{VC}$

Remain unchanged regardless of production volume

Change directly with production volume

Where total revenue equals total costs (no profit or loss)

$\frac{\text{Fixed costs}}{\text{Contribution per unit}}$

$\text{Actual sales} - \text{BEP}$

$\frac{\text{Contribution per unit}}{\text{SP}} \times 100$

$\frac{\text{FC} + \text{Profit target}}{\text{Contribution/unit}}$

Cannot be used (doesn't comply with accounting standards)