Exam 2: Refresher on Cost Terms Road Map

Cedar Ridge Orthodontics manufactures custom nontraditional orthodontic apparatuses. The following information was reported at the end of the current year: If 70% of the Cost of Goods Sold is variable, and 65% of the SG&A expenses are variable, convert Cedar Ridge's traditional-formatted income statement to a contribution margin income statement format.

Explain how the financial statements for a service provider, merchandiser and manufacturer differ.

The account balances are show below for Indigo Industries at the end of the current month: Compute the cost of goods manufactured and cost of goods sold for Indigo Industries at the end of the month.

If Meyers Manufacturing currently incurs a variable cost per unit of $19.00 and a fixed cost per unit of $14.00 when it produces 1,000 units, what will the unit variable cost and unit fixed cost be when it produces $10,000 units?

Costs with future benefits are considered

Within the relevant range, as a company's level of production increases, fixed costs