of University Toledo
Internal Reporting
ACCT 4310 - Spring 2012
Study Guide for Exam 1
Exam Format:
26 multiple choice questions (15 conceptual & 11 problems).
Exam Topics:
The exam covers chapters 4, 5, 15 & 17.
Topics include the following:
Chapter 4 - Job Costing:
Costing systems: Job costing versus process costing What & When to use (examples)?
Costing approaches: Distinguish actual costing from normal costing - Pros & cons
Determining cost using job costing system How?
Track the flow of costs in a job costing system & Journal entries
Calculate & dispose of under/overallocated manufacturing overhead costs at the end of the
fiscal year Three methods
Chapter 5 - ABC/ABM:
Costing systems: Traditional versus activity-based costing systems
Cost hierarchies 4 types
Cost products or services using activity-based costing
Evaluate the costs and benefits of implementing activity-based costing Explain systems
how activity-based costing systems are used in activity-based management
Chapter 15 Cost Allocations:
Operating departments: Single-rate vs. dual-rate methods
Incentives - budgeted vs. actual rates and hours.
Multiple support-department: Direct, the step-down, and the reciprocal methods
Common costs: Stand-alone method and the incremental method
Importance of explicit agreement between contracting parties when the reimbursement
amount is based on costs incurred
Revenue allocation bundled products: Stand-alone and the incremental methods
Chapter 17 - Process Costing:
Identify the situations in which process-costing systems are appropriate
Understand the basic concepts of process-costing and compute average unit costs
Calculate equivalent units
Use the weighted-average method and FIFO in process costing
Understand the need for hybrid costing systems such as operation costing
ACCT 4310