MGMT_(201)_Ganguly_Final_Review - MGMT(201 Ganguly MGMT(201...

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Unformatted text preview: MGMT (201) Ganguly MGMT (201) Ganguly Review for Final Exam 1. Basic Ideas (Ch. 1 & 2) 1. Basic Ideas (Ch. 1 & 2) Managerial Accounting Basics Product Cost vs. Period Cost Direct Costs vs. Indirect Costs Prime Cost & Manufacturing Overheads Material Costs, Conversion Costs, Total Costs Variable, Fixed and Semi­Variable Costs Opportunity Costs & Sunk Costs Marginal Costs vs. Average Costs COGS & COGM schedules & cost flows 2. Job Order & Normal Costing 2. Job Order & Normal Costing (Ch. 3) Application of Overheads Predetermined Overhead Rate Over­Application & Under­Application of overheads Adjustments due to over­ or under­application of overheads, both through COGS and by prorating to WIP, Fin. Goods & COGS Profit maximizing output (e.g. 2­58) 3. ABC Costing (Ch. 5) 3. ABC Costing (Ch. 5) Two­stage allocation of overheads instead of one­stage allocation Plant­wide vs. Department­wide vs. ABC allocations “Traditional” vs. ABC allocation methods Identifying cost drivers Dividing activities into cost pools and then allocating based on pool rates Unit costs and total costs 4. Process Costing (Ch. 4) 4. Process Costing (Ch. 4) Equivalent units of production (weighted average) Total costs to account for Costs per equivalent unit: Material Cost per equivalent unit Conversion Cost per equivalent unit Total Cost per equivalent unit Cost of goods transferred out Cost of ending (or beginning) WIP inventory Production in batches: operation costing 5. Absorption vs.Variable Costing 5. Absorption vs.Variable Costing (Ch. 17) Absorption Income Variable Income Differences between the two, comparisons Effects on Income of Inventory increaseds and decreases (nice HM problems) Extensive self­study problems to really grasp/review the concepts BEP (nice HM problems) 6. CVP analysis 6. CVP analysis (Ch. 8 & Appendix) Understanding graphs of CVP relationships Computing sales required for a target net profit Using contribution margin approach and equations approach Safety margin What happens when Fixed Costs change? What happens when unit contribution margin changes? Predicting profits given expected volumes CPV analysis with multiple products (nice HM problems) Before or after taxes! (nice HM problem) Cost Structure & Operating Leverage (nice HM problem) Extensive self­study problems WAUCM BEP Sales volume for each product in mix Relevant/Irrelevant Information 7. Decision Making & CVP 7. Decision Making & CVP (Ch. 14) Accept or Reject a Special Order Outsource a Product or Service Add/Drop a product, service or department Joint products (Cocoa beans!) (also, nice HM Problem). Decision involving limited resources (nice HM problem) Relevant Costs Relevant Benefits Sunk Costs Opportunity Costs 8. Long run decision making (Ch. 8. Long run decision making (Ch. 16) Discounted Cash Flow analyses Special case of depreciable assets Comparing two investment projects NPV & IRR methods, comparisons Idea of hurdle rate Assumptions Income taxes and capital budgeting Total­cost approach or incremental­cost approach Special case of non­cash expenditures Payback method Accounting Rate of Return Other conventional methods of making investment decisions 9. Budgeting (Ch. 9) 9. Budgeting (Ch. 9) Types of budgets and their linkages Sales, Production, Dir. Material, Dir. Labor, Overheads, S&A Expenses, Cash Receipts, Cash Disbursements Budgeted Income Statements & Balance Sheets Zero­base budgeting International Aspects of budgeting Budgeting Product Life Cycle costs Budgetary slack & padding of budgets Associated considerations Variable Cost variances 10. Variance Analysis & Flexible 10. Variance Analysis & Flexible Budgets (Ch. 10 & 11) Material Price & Quantity Variance Labor Rate & Efficiency Variance Variable Overhead Spending and Efficiency Total variance Variance Fixed Overhead Budget & Volume Variance Flexible Budgets & Performance Evaluation Order of Importance Order of Importance 1. 1. 2. What was done in class (but this is only background!) What was done in HM Practice Quizzes & Exams, Actual Quizzes & Exams 1. Class notes (relate these to readings) Class Slides 2. 3. 4. 1. 2. What was Done in Recitations You have TEN of these! 5. 6. Other Self­Study Questions Other readings­related matters not specifically covered above Reviews/recapitulations Self­Study Questions worked out Please remember to… Please remember to… Bring your University Picture ID Bring a calculator that Please acquire a duplicate if you have lost or misplaced it Is NOT programmable Is NOT a Financial Calculator (cannot do IRR, NPV, etc. (Simple $3.00 calculators with four basic functions and memory are best.) Location already known from SIS Check e­mail 2 days before the exam for info. on seat assignment. Seating: Other details Other details 25 multiple choice questions; 3­4 exercises Arrive 15 minutes early for the exam We will start on time Positively finish in 2 hours (NO extra time for writing names, filling bubbles, etc.) Point distribution will generally be given Don’t obsess over bad (or good) answers Pace yourself …a few “final words” For those on scholarships, special programs, etc. requiring a minimum grade from this course This is a major event for you. If you “need” a good grade, here’s your “final” chance to get it! Now is your chance to show how hard you worked for the course. [“Don’t tell me you worked hard for the course; show me!”] Course grades will be made exclusively on the basis of your scores and related information given in the syllabus (not on the basis of how hard you claim to have worked, your “need” for a particular grade, or any other consideration) …a few more “final words” AFTER THE FINAL EXAM Please do not send e­mail or call the professor or TAs asking when the grades will be ready Please check Katalyst starting approximately a week after the final exam and all grade information will be posted Queries will not help the grading process to happen faster: it may delay it further As usual, clarifications on grade information will be in an announcement on the Katalyst events page If you want to check the Final exam grading, please contact us after the second week of June. Any errors will of course be corrected and the grade adjusted, but there will be no change of grade for any consideration other than errors. Of course, Checkpoint 3 scores will be posted on the last day of class including ALL OTHER scores and you will have until the final exam day to dispute those. Good Luck! Good Luck! ...
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This note was uploaded on 03/18/2011 for the course MGMT 201 taught by Professor Rowe during the Spring '08 term at Purdue.

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