Exam (elaborations)
ACG2071 Final Exam (2)
ACG2071 Final Exam (2)
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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
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