Review_Final_Blackborad_DL

Review_Final_Blackborad_DL - Review BUAD 2050 - Final Exam...

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Review 50 MCQs @ 3 each =150 Points BUAD 2050 - Final Exam Wednesday December 14 DC 1019 2:45 4:45 PM Chapter Questions 4 each 2 each 10 each 5 each 50
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Chapter 1 Management Accounting: A Value-Added Discipline Management accounting versus financial Cost ? Different cost for different purposes / Classifications Purpose or function of cost: Product (Inventory) Cost Manufacturing-related cost (Cost of producing product or providing Average Product Cost Per Units Produced = Total Product Cost ÷ # Units Produced Product cost flow from Balance Sheet (Asset part of inventory) when completed Balance Sheet + Inventory - Cash (or + Liabilities) To Income Statement as COGS Expensed only when sold = Average product cost per unit X Units sold) (not when completed) Income Statement +Expenses -Income Balance Sheet -Inventory - Stock Equity Period Cost Non-manufacturing Cost ( cost other than to produce product or provide service) E.g.: R&D, General, Selling expenses, Advertisement & Administrative expenses (administrative salaries, supplies, depreciation on administrative building) Expense immediately Income Statement Income Statement + Expenses - Income Balance Sheet - Cash (or + Liability) - Stock Equity
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Chapter 2 Cost Behavior, Operating Leverage, and Profitability Analysis Behavior relative to a given activity measure (base) within a relevant range (independent Variable: Total: changes directly with changes in activity Per unit: constant (does not change) Fixed : Total: constant (does not change) Per Unit: changes inversely with changes in activity Estimating Cost Behavior Mixed cost High-low analysis Unit variable cost = Difference in cost / difference in activity Total Fixed = Total cost (given) Total variable (prior step x activity) Operating Leverage Extent of using fixed vs. variable cost (reflects cost structure) Operating leverage factor = Contribution margin / Net income Used to measure how percentage changes in sales affects profits % change in profitability = % change in sales X leverage factor More fixed cost = Highly leveraged firms = High profitability (opportunity) + High risk (volatility). Sales Less: variable expenses Contribution margin Less: fixed expenses Net income Contribution Income Statement
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Chapter 3 Analysis of Cost, Volume, and Pricing to Increase Profitability Cost-Volume-Profit (CVP) Analysis? Focus: behavior, contribution income statement
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This note was uploaded on 02/22/2012 for the course BUAD 2050 taught by Professor Nicholasw.schroeder during the Spring '09 term at Toledo.

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Review_Final_Blackborad_DL - Review BUAD 2050 - Final Exam...

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