Review for Test 3 Chapters 5 - 6
36 Multiple Choice
How does a merchandising companys income statement differ from a service related companys
-On the Income Statement, a merchandising company reports revenues using an account c
Review for Test 2
There are 30 multiple choice questions, 3 adjusting journal entries, 1 closing entry and be able to
list the 10 steps of the accounting cycle.
For the following listed accounts you should know:
Which accounts they are
Running head: AFFIRMATIVE ACTION IN SOCIETY
Fayetteville State University
April, 15 2016
AFFIRMATIVE ACTION IN SOCIETY
Efforts to fix the results of years of slavery, segregation and lack of opportu
Standard Cost Schedule - Lots N42, N43, and N44
Standard Cost per box
Actual out put
Total standard cost
Standard cost per box
Standard cost per
Revenue and cost under two alternatives
1 Passenger revenue
2 Landing fee in San Francisco
3 Use of airport gate facilities
4 Flight crew cost
6 Meals and services
total revenue less costs
= 98,000 direct labor * 0.16 percent
= 23 per type * 24 types
= 35,000 units * .28 per unit
= 144 per order * 50 orders
= 552 + 9800 + 7200
1. Finished goods inventory cost on 12/31 under variable costing:
Finished-goods inventory, January 1 None
Planned production for year end 10,000
Products sold. 9,000
Finished goods inventory. 1,000
2. Higher operating income for the year:
1.) Consider the following statements regarding traditional costing systems:
I. Overhead costs are applied to products on the basis of volume-related
II. All manufacturing costs are easily traceable to the goods produced.
1.) Product costing in a manufacturing firm is the process of:
A. accumulating the company's period costs.
B. allocating costs among the firm's departments.
C. placing a value on the company's fixed assets.
D. assigning costs to the firm's inventory.
Select the best answer.
1. A static budget:
A) is based totally on prior year's costs.
B) is based on one anticipated activity level.
C) is based on a range of activity.
D) is preferred over a flexible budget in the evaluation
1. An increasing number of organizations are segregating managerial
accountants in separate managerial-accounting departments.
2. cost minimizing.
3. Decision making.
5. Directing Operational activities
7. Maximizing profits and
Expected increase in revenue
Expected increase in variable manufacturing costs
Expected increase in operating income
(57,000 packs $0.41 per pack)
(57,000 packs $0.31 per pack)
Hobby-Cardz should accept the s
Production Cost ReportFINISHING DEPARTMENT
Month Ended September 30, 2014
Units to account for:
Started in production
Total units to account for
Units accounted for:
Chapter 25: Short-Term Business Decisions
How can managers use their knowledge of cost behavior to make short-term decisions
(those less than one year)?
We will cover long-term decision-making in Chapter 26.
How do managers make short-term decisions among
Chapter 20 Cost-Volume-Profit Analysis
1. Three Types of Costs
Variable costs costs that increase or decrease in direct proportion to increases or in the
volume of activity (for our purposes, the level of manufacturing activity).
Total variable costs vary
ACCT 2302 EXAM REVIEW (Exam IV)
Chapter 25 Short-Term Business Decisions
Difference between short and long-term decision made by management
Relevant vs irrelevant information in the decision-making process
Relevant nonfinancial (Qualitative) in
ACCT 2302 EXAM REVIEW (Exam IV)
Chapter 22 Master Budgets
Difference between short, medium, & long-term goals of a company
Budgets are prepared to help achieve short-term goals (the upcoming year)
What is a budget?
Budgets are prepared at the lowest level
ACCT 2302 EXAM REVIEW (Exam II)
Chapter 19 Cost Management Systems (12 questions)
What are cost management systems and their purpose?
Allocation of overhead to products single plan-wide rate; multiple department rates;
and ABC costing
ABC costing multiple
Chapter 24- Responsibility Accounting and Performance Evaluation
Centralized Companies a company where the major planning and controlling decisions are
made by top management.
Decentralized Companies a company divided into business segments, with segment
Chapter 23 Flexible Budgets and Standard Cost Systems
1. The primary purpose of managerial accounting is to plan and control the operations of a
Planning budgeting (what we covered in the prior chapter) is the primary way this is
o Most com