managerial review test 3

managerial review test 3 - Managerial Accounting Midterm 3...

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Managerial Accounting Midterm 3 Review sheet The third managerial midterm is during class on April 23rd. Any absences must follow the instructions as per the syllabus. All makeup exams will take place on May 2 nd from 10 -12. The exam will cover chapters 9, 12 and 13. The exam will consist of multiple choice and 3 problems (each with multiple parts). As a study guide, I would recommend reviewing the homework problems, extra in class problems, and the chapter review problems. I would also recommend completing several new problems in the chapters. I have attached some practice multiple choice and problems. We will review these in class on April 21st. Please bring pencils and calculators to the midterm. Any material covered in the readings and/or class is fair game. The exam will cover the TV article discussed in class. I have emphasized the following learning objectives in class: Chapter 9 1.       List and explain five purposes of budgeting systems. 2. Describe the similarities and differences in the operational budgets prepared by  manufacturers, service industry firms, merchandisers, and nonprofit  organizations. 3. Prepare each of the budget schedules that make up the master budget. 4. Discuss the role of assumptions and predictions in budgeting. 5. Describe a typical organization’s process of budget administration. 6. Discuss the behavioral implications of budgetary slack and participative budgeting. Chapter 12 and 13 1. Explain the role of responsibility accounting in fostering goal congruence. 2.          Define and give an example of a cost center, a revenue center, a profit center,  and an investment center. 3.       Compute an investment center’s return on investment (ROI), residual income 
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(RI).
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4. Explain how a manager can improve ROI by increasing either the sales margin or  capital turnover. 5. Describe some advantages and disadvantages of both ROI and residual income as  divisional performance measures. 6. Explain how to measure a division’s income and invested capital. 7. Explain how to base a transfer price on market prices, costs, or negotiations.
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Practice Multiple Choice 1. Strategic planning focuses on a. short-range decisions. b. intermediate-range decisions. c. sales targets. d. long-range decisions. 2. A plan that formalizes in financial terms the overall goals and objectives of a company is called a a. capital budget. b. master budget. c. participative budget. d. strategic plan. 3. The beginning inventory is expected to be 2,000 cases. Expected sales are 10,000 cases, and the company wishes to begin the next period with an inventory of 1,000 cases. The number of cases the company must purchase during the month is
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This note was uploaded on 04/23/2009 for the course MA MA022 taught by Professor Schimmel during the Spring '09 term at BC.

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managerial review test 3 - Managerial Accounting Midterm 3...

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