PRACTICE FINAL EXAM
ABC Company makes and sells custom shoes. In 2012 the company reported the following information to
their manufacturing: Shoes made and sold: 50,000 Investment: $2,500,000 Mark-up % on full cost: 35% Rate of
Return on inv
Chapter 4 Notes: Pricing Decisions
This chapter focuses on pricing decisions and cost management. There is no one magic solution
to pricing products. Products vary in cost, their demand and the competition in the market. There
are 3 major influences in pr
Discussion Outline on Capital Budgeting Appendix
What is capital budgeting?
In honor of the term capital, we are here referring to considering the purchase of a capital asset that will
be used longer than one year. We can refer to the whole process as bud
Karens Lecture Notes Chapter 4: Decision Making and Relevant Information
Heres the chance to put some of our theory into practice.
This chapter discusses the concept of Relevant Costs which, if you break down that term literally,
would be something like s
Karens Lecture Notes Chapter 12: Management Control Systems
What is a Management Control System?
A means of gathering and using info to plan and control decisions in an organization, and to guide the behavior
of its managers and employees. This includes d
Karens Lecture Notes: Appendix on Capital Budgeting
In breaking down the terms Long-term Investments or Capital Budgeting we refer to a primary
concept of financial statements, wherein a capital item is one that lives on the Balance Sheet (rather
Transfer Pricing: In-Class Exercises With Solutions
Exercise 1 Transfer Pricing Situations
In each of the cases below, assume that Division X has a product that can be sold either to outside customers or to
Division Y of the same company for use in its pr
Karens Lecture Notes Chapter 13: Planning and Budgeting
In life, and in business, its a good idea to make budgets. It gives us something to aim for. It
might be that at this point, you have a rough idea of what your monthly budget is, because you
have a f
Karens Lecture Notes Chapter 7: Job Costing
.is kinda ugly. But well master it together.
We need to get a handle on this concept because we use it a lot this semester. Ok, so for each product
we make, we know there are 3 main compon
Exam Review Document Prepared by Karen Congo Farmer
1. Final exam: 55-60 questions, 2 hours. Cumulative, so includes all chapters covered this semester. The new
chapters covered but not yet tested will have a higher number of questions than the chapters w
Exam Review Document Prepared by Karen Congo Farmer
1. Final exam: 55 questions, 2 hours. Cumulative, so includes all chapters covered this semester. The new
chapters covered but not yet tested will have a higher number of questions than the chapters we c
Test 1 Practice Exam
Farmer Inc. has the given you the following information: Ending Finished Goods Inventory: $25,000; Beginning
Finished Goods: $50,000; Ending WIP: $35,000; Beginning WIP: $56,000; Total Manufacturing Cost: $165,000; OH
Discussion Outline: Chapters 1 and 2
1. What is an accountants role in an organization?
A. Providing information to the key decision makers and evaluating performance.
What are direct costs? Examples:
A. Direct costs can be conveniently and economic
Karens Lecture Notes Chapters 2: Cost Concepts and Behavior
This chapter is introductory in nature, and therefore includes a lot of definitions. I encourage you to
take a deep breath, and dig in, because if you dont get these concepts, and arent able to q
Chapter 4: Decision Making and Relevant Information
What is a decision model?
A formal method of making a choice, and it often involves both quantitative and qualitative analyses.
What are relevant costs and relevant revenues?
Future inflows and outflow
Chapter 13: Master Budget and Responsibility Accounting
Budget- quantitative expression of a proposed plan of action by management for a specified period
and an aid to coordinate what needs to be done to implement that plan; includes financial and nonfina
Thinking Through Cost of Goods Manufactured and Cost of Goods Sold
When you look at all the terms within the calculations for Cost of Goods Manufactured
(COGM) and Cost of Goods Sold (COGS) in the manufacturing context, it can be offputting.
I titled this
Karens Lecture Notes Chapter 3: Cost Volume Profit Analysis
This is a great chapter because it presents some very useful topics for your LIFE the concepts
of contribution margin and break-even analysis.
Contribution margin is actually defined as: Selling
Chapter 14: Business Unit Performance Measurement
And Portions of
Chapter 12: Management Control Systems
Initially in your careers, youll be an employee, but sooner than you think, youll become a manager
with fledgling accountants under your purview and l
Chapter 3: Cost Volume Profit Analysis
What is break-even point?
Its a form of cost-volume-profit analysis. The break-even point is where profit = 0, and all costs,
whether variable or fixed have been covered.
What is CVP analysis?
Karens Lecture Notes Chapter 15-B: Transfer Pricing
What is Transfer Pricing?
In decentralized companies, decision-making power resides in the sub-units. Transfer pricing is simply the price
at which two related entities, or subunits of the same company,