Alecia C. Gonzalez
1. Computation of East division's ROI
ROI = Net operating income/Operating assets
New product line:
Operating income = Sales - Variable costs - Fixed costs
=9,000,000 - (65% x 9,000,000
8a0cf554b5c541ad6c73c2b1419838655a22b9aa.doc, Intro to Managerial, Prof. Cho
Dimaio Company uses an activity-based costing system with three activity cost pools. The company has
provided the following data concerning its costs and its act
f3b39aa381a0dfdd94f4b3c1711c7467352c677d.doc, Prof. Cho
Part A: Multiple Departments; Overhead rates; under- or over-applied overhead
Hobart, Evans, and Nix is a small law firm that contains 10 partners and 12 support persons. The firm
employs a job-order
50a8e3c6e308e30be18921cb50989da1e9074215.doc, Intro to Managerial Accounting, prof. Cho
Classification of Costs
Wollogong Group Ltd. of New South Wales, Australia, acquired its factory building about 10 years
ago. For several years the company has rente
Ch05_inclass, Intro to managerial Accounting, Prof. Cho
Basics of CVP Analysis
Feather Friends, Inc. distributes a high-quality wooden birdhouse that sells for $20 per unit.
Variable costs are $8 per unit, and fixed total costs total $180,000 per year.
e7bf3b3aacd9409cfc2f24d3abedb6dc0a6aedc2.doc, Intro to Managerial Accounting, prof. Cho
1. Kahn Company produces and sells 8,000 units of Product X each year. Each unit of Product X sells
for $10 and has a contribution margin of $6. It is estimated that
2932d31d2b2da4a89b9b92a2202f3e68ad52c851.doc, Intro to Managerial, Prof. Cho
Part 1: Abbey Company, which has only one product, has provided the following data
concerning its most recent month of operations:
Units in beginning invent
Chapter 7 Activity-Based Costing: A Tool to Aid Decision Making
LO1: How does activity-based costing differ from a traditional costing system?
1. ABC is a costing method that is designed to provide managers with cost
information for strategic and other de
Chapter 5 Cost-Volume-Profit Relationships
Key assumptions of CVP analysis
Selling price is constant.
Costs are linear.
In multi-product companies, the sales mix is constant.
In manufacturing companies, the level of inventories does not ch
Chapter 3 Job-Order Costing
LO 1: Job-order costing versus process costing.
1. Job-order costing systems are used when
(1) Many different products are produced each period.
(2) Products are manufactured to order.
(3) The unique nature of each order requir
Chapter 4 Process Costing
LO1: Comparison job-order and process costing.
1. Similarities between job-order and process costing:
Both systems assign material, labor and overhead costs to products and
they provide a mechanism for computing unit product
Chapter 6 Variable Costing and Segment Reporting: Tools for Management
LO1: How variable costing differs from absorption costing in computing unit
1. Variable costing defines product costs as costs of production that vary with
Chapter 10 Standard Costs and Variances
LO1: Basic definitions/concepts.
1. A standard is a benchmark or norm for measuring performance. In managerial
accounting, two types of standards are commonly used by organizations:
(1) Quantity standards specify ho
Chapter 9 Flexible Budgets and Performance Analysis
LO1: Prepare a flexible budget.
1. Budgets are part of the performance evaluation process. When actual results are
compared to budgets, a variance is computed for revenue and each expense item:
(1) A fav
FORMAT OF FINAL EXAM (ACBU 2223)
The Exam covers Chapters, 8, 9, 10 (including Appendix A), 11 (including Appendix A), and 12
The exam consists of 7 problems.
The first problem consists of 20 multiple choice questions; some of the questions are
Chapter 2: Managerial Accounting and Cost Concepts
-Cost has many different ways, many different purposes
1) Cost Classifications for Assigning Costs to Cost Objects:
Cost Object- anything for which cost data are desired. (Products, customers, jobs, and
Chapter 4: Process Costing
Similarities between Job-Order and Process Costing:
1) Both systems have the same basic purposes-to assign material, labor, and manufacturing
overhead costs to products and to provide a mechanism for computing unit product
Chapter 3: Job-Order Costing
Absorption Costing- include all manufacturing costs, both fixed and variable.
Job-order Costing- used in situations where many different products, jobs or services are
produced each period. (Individual and unique features)
April 4, 2014
Traditional Income Statement
Cost of goods sold
Net operating income
Average net operating income
Chapter 12 Differential Analysis: The Key to Decision Making
LO1: Identify relevant and irrelevant costs and benefits in a decision.
1. Costs that differ between alternatives are called relevant costs. Benefits that
differ between alternatives are relevan
Chapter 11 Performance Measurement in Decentralized Organizations
LO1: Decentralization in organizations.
1. A decentralized organization does not confine decision-making authority to a few
top executives; rather, decision-making authority is spread throu
Chapter 8 Profit Planning
LO1: Understand why organizations budget and the processes they use to create
1. A budget is a detailed quantitative plan for acquiring and using financial and
other resources over a specified forthcoming time period.