Exam (elaborations)
ACG2071 Final Exam (2)
ACG2071 Final Exam (2)
[Show more]
Seller
Follow
Content preview
ACG2071 Final ExamAccount Rate of Return (ARR) - ANS-(savings/year - cost/year) / investment
OR
avg. annual op inc / initial required investment
accounts payable - ANS-how much money we have yet to spend (for purchases)
Accounts Receivable - ANS-how much money we have yet to collect (for sales)
as activity level goes up, fixed expense per unit: - ANS-decrease
as activity level goes up, fixed expenses: - ANS-stay the same
as activity level goes up, total variable cost per unit: - ANS-stays the same
as activity level goes up, total variable costs: - ANS-increase
As CM or SP increase, break-even _______ - ANS-decreases
- anything else makes BE decrease
As VC or FC increase, break-even _______ - ANS-increases
- costs make BE increase
Capital Budgeting - ANS-when companies have to make super long-term decisions where they
need to dump a lot of money into a building or project
cash collections - ANS-how much money we expect to collect (for sales)
cash disbursements - ANS-how much money we expect to pay out (for purchases)
CH: 7 - ANS-(4 questions - 1 conceptual) - understand cost-volume-profit analysis (breakeven
point, sales needed to reach a target op. income, margin of safety, etc.)
CH:1 - ANS-(1 conceptual question) - understand the differences between financial accounting
and managerial accounting
CH:10 - ANS-(3 questions) - understand performance evaluation (ROI and Residual Income) as
well as transfer pricing and variance calculations
CH:11 - ANS-(2 questions) - understand variance calculations for DM and DL (price/rate
variance and quantity/efficiency variance)
, CH:12 - ANS-Chapter 12: (7 questions - 2 conceptual) - understand capital budgeting
calculations (payback period, ARR, NPV, IRR, profitability index)
CH:2 - ANS-(5 questions - 3 conceptual) - understand the flow of costs through the inventory
accounts and ultimately to the income statement
CH:3 - ANS-(2 questions) - understand how to allocate MOH in a traditional costing system and
how to determine if MOH is under or over-allocated
CH:4 - ANS-(1 question) understand how to allocate MOH using an activity-based costing
system
CH:6 - ANS-(2 questions - 1 conceptual) - understand the different types of cost behavior and
how to estimate mixed costs using the high-low method
CH:8 - ANS-(4 questions) - understand how to work through various decisions
CH:9 - ANS-(4 questions) - understand how to calculate various components of the master
budget
CM per unit - ANS-selling price per unit - VC per unit
OR
contribution margin / # units sold
CM Ratio - ANS-CM/Sales
OR
CM per unit/ SP per unit
COGM - ANS-the amount that gets moved from the WIP to the FG inventory
(using t-charts)
COGS - ANS-the amount that gets moved from the FG inventory to the COGS account
(using t-charts)
COGS formula for Manufacturers - ANS-B FG inv
+ COG manufactured
= GAFS
- EI
= COGS
COGS formula for Merchandising companies - ANS-beginning inventory
+ purchased
+ import duties or tarrifs
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller modockochieng06. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$11.45. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78998 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now