A planning budget is prepared before the period begins and is valid for only the planned level of activity.
An unfavorable activity variance for a cost indicates that spending was higher than it should have been for the actual
level of activity
1st Midterm Study Guide
Disclaimer: This can help you, but it wont always get you an A. If you do not receive the
grade you wanted, I take no responsibility for it.
TABLE OF CONTENTS
2. Chapter 1: Managerial Accounting Overview
AC 222 FALL 2009
FI N AL EXAM ST U D Y
P lease pay particular attention to the exam location , and to the EXAM INSTRUCTIO NS at the
end, which are printed here only, and not on the actual exam.
I F YOU DO NOT PUT YOUR VERSION NUMBER, WE WILL DEDUCT TWO (5
AC 222 SPRING 2011
FINAL EXAM STUDY GUIDE
When is the exam?
Chapter 11: Flexible Budgets and Overhead Analysis:
Total Overhead Costs = Total Variable Costs + Total Fixed Costs
Total Variable Overhead = Total Overhead Rate per activity x Total Activity
Flexible Budget Concept: use a cost formula and multiply it by
My Notes Chapter 12 Segment Reporting and Decentralization
Decentralized Organization: decision-making authority is spread throughout the organization rather than
being confined to a few top executives.
Responsibility Center: used for any part of an organ
Chapter 11 Notes
Variable costs are expressed in units per activity while
Fixed costs are expressed as a total amount
When Flexible budget is based on hours of activity the quatity of hours chosen can be based on actually
hours or standard hours allowed f
Quantity Standards specify how much of an input should be used to make a product or provide a
Cost (price) Standards specify how much should be paid for each unit of the input.
Actual quantities and actual costs of inputs are compared
KEY TERMS AND NOTES
Weconsidertwo main conceptsinChapter3:
separateproductsanddeterminethecostofone unit of a product?
KEY TERMS AND NOTES
Product costs =
Period costs =
M anufacturing costs =
Non-manufacturing costs =
I nventoriable costs
Marketing and selling
P rime costs