Contribution margin is first used to pay fixed
expenses. Once the break-even point has been
reached, contribution margin becomes profit.
Calculation of contribution margin ratio is total
contribution margin divided by
Salary of production supervisor
Introduction to Managerial Accounting
Fall 2015 Section 01
NOTE: This syllabus provides a general plan for the course. Deviations during the semester may be necessary.
General Course Information
Professor Shannon Shumate
Cost structure refers to the relative portion of fixed
and variable costs in a organization.
Variable costs per unit is determined by dividing total
variable costs by total activity.
The margin of safety in dollars is the excess of the
budgeted (or act
Chapter 9: LEARN SMART- PROFIT PLANNING
The manufacturing overhead budget shows all costs of
production other than direct materials and direct labor.
All cash flows instead of financing are listed in the receipts
section of the cash budget
The master b
Direct materials are recorded on job cost sheets, and indirect materials are charged to the
Cost of goods sold: beginning finished goods inventory. Add cost of goods manufactured, deduct
ending finished goods inventory, cost of goods sol
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Chapter 01 - An Introduction to Accounting
An Introduction to Accounting
Short Answer Questions
Indicate how each event affects the elements of financial statements. Use the following letters
to record your answer in the box shown below each el
LEARNSMART CHAPTER 8 l Job
Simple rate of return focuses on net operating income
rather than cash flows
When using the profit profitability index to rank competing
investments, the higher the project profitability index, the
CHAPTER ONE ACCOUNTING 2200
LEARN SMART/TEXTBOOK NOTES
Salaries expense is showcased in retained earnings as ()
A bottleneck is the same as a constraint. They both prevent you from getting
what you want.
Managers need measurement skills to be able to prov
Award: 0 out of 1.00 point
Haras Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The
company sells the product for $147.30 per unit
LEARN SMART CHAPTER 11
Material requirements plus an allowance for unadvoidable waste are added together to
determine the standard quality of a material input per unit of output.
Only significant variances should be investigated to determine their root ca
LEARN SMART CHAPTER 6
The activity measure for a customer order cost pool might be the number of customer orders
External reports are less detailed than internal reports.
Manufacutring costs not assigned to products in activity based costing: th
ACCT 2200 Exam 1 Study Guide
Chapter 15 Financial Statement Analysis
1. Calculate the following:
b. PE Ratio,
c. Current Ratio,
d. Working Capital,
e. Net Operating Income,
f. Net Operating Income as a Percent of Sales
g. Net Income
h. Gross Margin
ACCT 2200 Fall 2015 Common Semester Schedule
All dates and times referenced in this course are Eastern Standard Time. Chapter references apply to both
our custom text and the standard 3rd edition hard-bound printed text. Page references shown here apply t
Final Exam Review
Finding Simple Rate of Return
o Find Depreciation
Amount of Asset used up/years
o Subtract it from incremental cost savings (or cash inflow)
This gets you annual incremental net operating income
o Annual incremental net operating incom
Financial Accounting Review
Financial accounting is primarily concerned with distributing information to investors and creditors
users outside of the company. It is a presentation of historical data. There are 3 primary financial
1. Balance S
Classifications of manufacturing costs
Direct materials Raw materials that become an integral part of the finished product and
whose costs can be conveniently traced to it.
Direct labor Labor costs that can be easily traced to indi
Exercise 11-1 (20 minutes)
1. Number of chopping blocks.
Number of board feet per chopping block. 2.5
Standard board feet allowed. 10,000
Standard cost per board foot. $1.80
Total standard cost. $18,000
Actual cost incurred. $18,700
Standard cost ab
Practice Budget Extra Credit: Preparing a master budget for a retail
company with no beginning account balances
Unici Company is a retail company that specializes in selling outdoor camping equipment.
The company is considering opening a new store on Octo
The contribution margin (CM) ratio is the ratio of the total contribution margin to total
sales revenue. It is used in target profit and break-even analysis and can be used to quickly
estimate the effect on profits of a change in sales revenue.
Module 1: Healthy Living Check-in Submission Form (75 points)
PART 1: Lifestyle Management Health Risk Inventory - 26 points
Complete the Lifestyle Management Health Risk Inventory (HRI). Once you have completed the HRI,
Profit = (Sales-Variable Expenses) Fixed Expenses Target Profit = (Unit CM x Qty) Fixed Expenses 3 main activities planning, controlling, and
decision-making . Quick Ratio (current as inv./current liabs) Current Ratio (current assets/current liabs) Gross
Award: 1.00 point
Haras Corporation is a wholesaler that sells a single product. Management has provided the
following cost data for two levels of monthly sales volume. The company sells the product for
$147.30 per unit.
Sales volume (units)
Cost of sa
Pre-final Quiz Study Guide
You have 2 pre-final quizzes intended to help you prepare for the final exam. This study guide is intended
to help you focus your study efforts on key topics covered in this course.
Following are some general points ab
CHAPTER 11 LECTURE NOTES FOR STUDENTS
COST BEHAVIOR, OPERATING LEVERAGE, AND PROFITABILITY
Knowing how costs behave relative to the level of business activity helps managers to more
effectively plan and control costs.
Fixed Costs do not change IN TOTAL re
Exam 1 Study Guide
Chapter 10 10 Multiple Choice Questions
1. Know the differences between managerial and financial accounting.
2. Define and/or calculate the following:
a. Product vs Period Costs
b. Direct vs Indirect Costs
c. Manufacturing Overhead
Chapter 11 Practice Quiz
At a production and sales level of 3,000 units, Munro Company incurred $60,000
of fixed cost and $36,000 of variable cost. When 4,000 units of product are produced
and sold, the companys total cost is expected to be:
Quiz Questions for Chapter 10
1. Waverly Company paid $5,000 cash for wages of production workers. This business
a. increase total assets and total equity.
b. increase one asset account and decrease another asset account.
c. decrease total as