On this page, you can find the recording of the Weekly Meeting 4 for AMDM [Accounting for Managerial Decision Making]. Feel free to ask questions in the comment section below, we will answer them 🙂
Recording
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The recording has multiple parts and will be uploaded latest at 20:00 o’clock every Sunday. Press next to see the following one.
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Thank you for watching and we hope you liked it! Feel free to ask questions below 🙂 (We are notified if you ask a question).
You can find the next Recorded Weekly Meeting on this page.
In Video 3 slide 22, why do we do 10 euros multiplied with 50? (where does the 50 come from; because we decrease hours by 100)
I understand it now, ignore my last question
Hello, I do not undestand the following:
(Slide 9)Why did we divide the fixed manufacturing cost by the total produced units?
(Slide 16) Why do we say that the Fixed cost of 120 000 too low? And use the 150 000 instead?
(Slide 20) Why are Fixed costs irrelevant?
Hi 🙂
1) Because we want the cost per unit (which requires the division by the number of units).
2) The break even point that comes out is above the allowed numbers for this specific fixed cost (they only apply when we produced less than the result), so we have to use the fixed cost that allow the respective production level.
3) As an example, when you have extra room hours at Success Formula, whether you know use them or not, you have to pay the same rent (which is a fixed cost).
Hope that helps!