BASIC CONSIDERATION IN MAS

Total Variable Cost Charged to Expense= (Variable Manufacturing cost x Sold) +

{ Variable Administrative Expense x Production)

Formula:
Reveue- CGS- OPEX= Operating Income-

PERFORMANCE MEASURES

Lagging Indicators- Financial late; u have to wait for the information

Leading Indicators- non financial
Cross Trained Employees- they are aware of the different processes that is happening in
the production of the company’s products.

Price skimming, penetration pricing, yield management, price points, psychological

pricing, bundle pricing, value-based pricing, and premium pricing are all examples of
demand-based pricing.

A cartel is a collection of independent businesses or organizations that collude in

order to manipulate the price of a product or service.

CVP BEP

What Is Capacity? Capacity is the maximum level of output that a company can
sustain to make a product or provide a service. Planning for capacity requires
management to accept limitations on the production process.

Net operating income is revenue less all operating expenses while net income is revenue
less all expenses, including operating expenses and non-operating expenses, such as
taxes.