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ACC 241 ASU Geiger Exam1|56 Questions with Verified Answers,100% CORRECT
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ACC 241 ASU Geiger Exam1|56 Questions with Verified Answers
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ACC 241 ASU Geiger Exam1|56 Questions with VerifiedAnswers
Managerial Accounting - CORRECT 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 - CORRECT 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): - CORRECT ANSWER asset, if the benefit exceeds one accounting
period
expense, if benefit is consumed within one accounting period
Direct cost - CORRECT ANSWER Costs that can be easily and conveniently traced
to a unit of product or other cost objects
Indirect cost - CORRECT 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 - CORRECT 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
, Period cost - CORRECT ANSWER Costs that are not product costs such as selling
costs or administrative.
Expensed on an income statement when incurred.
Raw Materials Inventory - CORRECT ANSWER
Work in Process Inventory (WIP) - CORRECT ANSWER In Actual costing the MOH is
the only MOH
In Normal costing the MOH used is APPLIED
Finished Goods Inventory (FG) - CORRECT ANSWER
Operating Income Equation - CORRECT ANSWER Sales - COGS = GP - OE = OI
why most companies use "normal costing" (actual DM + actual DL + applied MOH)
- CORRECT ANSWER Normal costing uses a predetermined annual overhead rate
to assign manufacturing overhead to products. In other words, the overhead rate
under normal costing is based on the expected overhead costs for the entire
accounting year and the expected production volume for the entire year.
Under actual costing each month's actual costs and each month's actual
production volume are used to assign overhead costs. Since most companies will
experience month to month fluctuations in activity, the actual monthly overhead
rates will likely vary from month to month
Predetermined Overhead Rate (PDOR) - CORRECT ANSWER Estimated total MOH /
Estimated total amount of activity base (cost driver)
cost driver is typically direct labor hours or machine hours
Finding MOH Applied for Specific Job - CORRECT ANSWER PDOR x Actual C.D =
MOH Applied for Individual Job
Over-applied vs Under-applied
Actual - Applied - CORRECT ANSWER Actual > Applied = Under-applied (positive)
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