ACC 241 ASU Geiger Exam 1
Questions and Answers 100%
Correct
Managerial Accounting - ANSWER - 1. Internally focused
2. No mandatory rules
3. Financial and nonfinancial info, subjective info possible
4. Emphasis on future
5. Internal evaluation based on detailed info
6. Broad, multidisciplinary
Financial Accounting - ANSWER - 1. Externally focused
2. Must follow externally imposed rules
3. Objective financial info
4. Historically oriented
5. Info about the firm as a whole
6. More self-contained
Cost is a(n): - ANSWER - asset, if the benefit exceeds one accounting period
expense, if benefit is consumed within one accounting period
Direct cost - ANSWER - Costs that can be easily and conveniently traced to a unit of
product or other cost objects
Indirect cost - ANSWER - Costs that supports more than one cost object--must be
allocated to be assigned to a unit of product or other cost object
, Product cost - ANSWER - Costs associated with making the products available and
ready to sell.
Included as inventory on the balance sheet until sold, then it is expensed on an
income statement as COGS
High-Low Method - ANSWER - high cost - low cost / high activity - low activity =
VCpU
Contribution Margin Income Statement - ANSWER - Variable Expenses (VE) =
activity level (x) x VCpU
Fixed Expenses = f
Contribution margin/sales % = 1 - (VE / Sales)
Period cost - ANSWER - Costs that are not product costs such as selling costs or
administrative.
Expensed on an income statement when incurred.
Raw Materials Inventory - ANSWER -
Work in Process Inventory (WIP) - ANSWER - In Actual costing the MOH is the only
MOH
In Normal costing the MOH used is APPLIED
Finished Goods Inventory (FG) - ANSWER -
Operating Income Equation - ANSWER - Sales - COGS = GP - OE = OI
why most companies use "normal costing" (actual DM + actual DL + applied MOH) -
ANSWER - Normal costing uses a predetermined annual overhead rate to assign
manufacturing overhead to products. In other words, the overhead rate under
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