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ACC 241 Exam 1|232 Questions with Verified Answers,100% CORRECT
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ACC 241 Exam 1|232 Questions with Verified Answers
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ACC 241 Exam 1|232 Questions with Verified AnswersManagerial Accounting - CORRECT ANSWER Internally focused
Managerial Accounting - CORRECT ANSWER No mandatory rules
Managerial Accounting - CORRECT ANSWER Financial and nonfinancial; subjective
information possible.
Managerial Accounting - CORRECT ANSWER Emphasis on future
Managerial Accounting - CORRECT ANSWER Internal evaluation and decisions
based on very detailed information
Managerial Accounting - CORRECT ANSWER Broad and multidisciplinary
Financial Accounting - CORRECT ANSWER Externally focused
Financial Accounting - CORRECT ANSWER Must follow externally imposed rules
Financial Accounting - CORRECT ANSWER Objective financial information
Financial Accounting - CORRECT ANSWER Historical Orientation
Financial Accounting - CORRECT ANSWER Information on the firm as a whole
Financial Accounting - CORRECT ANSWER More self-contained
Direct Costs - CORRECT ANSWER Costs that can be easily and conveniently traced
to a unit of product or other cost object.
Indriect Costs - 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 Costs - CORRECT ANSWER Costs associated with making the products
available and ready to sell. Included as part of inventory (balance sheet) until the
product is sold. Then expensed on income statement as cost of goods sold.
Period Costs - CORRECT ANSWER Costs that are not product costs: Selling Costs &
Administrative. Generally, expensed on income statement when incurred.
Total Product Cost - CORRECT ANSWER Direct Materials + Direct Labor +
Overhead
Per Unit Cost - CORRECT ANSWER Total Product Cost / Number of Units Produced
Value Chain - CORRECT ANSWER Research and Development> Design>
Production/Purchases>Marketing> Distribution> Customer Service
Product or Period? Manufacturing cost?:
Plastic used to make products - CORRECT ANSWER Product, MOH
Product or Period? Manufacturing cost?:
Heating and lighting costs for factory - CORRECT ANSWER Product, MOH
Product or Period? Manufacturing cost?:
Factory Janitor wages - CORRECT ANSWER Product, MOH
Product or Period? Manufacturing cost?:
Costs of shipping to customers - CORRECT ANSWER Period, Operating Expense
Product or Period? Manufacturing cost?:
Lubricants used in factory equipment - CORRECT ANSWER Product MOH
Product or Period? Manufacturing cost?:
,Lighting costs for sales office - CORRECT ANSWER Period, Marketing
Product or Period? Manufacturing cost?:
Depreciation on factory equipment - CORRECT ANSWER Product, MOH
Product or Period? Manufacturing cost?:
Office supplies for sales office - CORRECT ANSWER Period, Marketing
Product or Period? Manufacturing cost?:
Insurance costs for factory - CORRECT ANSWER Product, MOH
Product or Period? Manufacturing cost?:
Freight-in (on plastics) - CORRECT ANSWER Product, Direct Materials
Product or Period? Manufacturing cost?:
Aluminum used to make products - CORRECT ANSWER Product, Direct Materials
Product or Period? Manufacturing cost?:
Assembly-line worker wages - CORRECT ANSWER Product, Direct Labor
Product or Period? Manufacturing cost?:
Salaries to salespeople - CORRECT ANSWER Period, Marketing
Calculate Direct Materials Used - CORRECT ANSWER (Beginning raw materials +
purchases of direct materials) - Ending raw materials inventory
Calculate Cost of Goods Manufactured - CORRECT ANSWER (Beginning work in
process inventory + Manufacturing costs incurred (DM used + DL + MOH)) -
Ending work in process inventory
, Calculate Cost of Goods Sold - CORRECT ANSWER (Beginning finished goods
inventory + Cost of goods manufactured) - Ending finished goods inventory
Calculate operating income (income statement) - CORRECT ANSWER Sales
Revenue (unit*price) - Cost of Goods Sold - Operating Expenses
Cost of Goods Sold formulas - CORRECT ANSWER DM + DL + MOH applied
Sales * (1-gross profit percentage)
Cost of goods available for sale - Ending finished goods inventory
Gross profit - CORRECT ANSWER Revenue - COGS
Why do most companies use normal costing? - CORRECT ANSWER Normal costing
will result in an overhead rate that is more uniform and realistic for all of the units
manufactured during an accounting year.
GAAP - CORRECT ANSWER only inventoriable product costs added to the
cost of assets (inventory)
Internal decision making - CORRECT ANSWER management wants to know the
total cost of the product across the value chain
Predetermined Overhead Rate - CORRECT ANSWER estimated total
manufacturing overhead cost/estimated total amount of the allocation base
Predetermined Overhead Rate x Actual Value of Cost Driver = - CORRECT ANSWER
Overhead Applied
actual overhead > applied overhead - CORRECT ANSWER under applied
actual overhead < applied overhead - CORRECT ANSWER over applied
COGS/COGM using normal costing - CORRECT ANSWER Beginning RM +
Purchases- Ending RM =DM used in Production
+ DL+ Overhead -APPLIED! = Total Manufacturing
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