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BEC > Cost Accounting > Flashcards

Cost Accounting Flashcards

1
Q

What is the Flexible Budget Equation?

A 
y = A + Bx
TC = Fixed + V(x)
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2
Q

What are prime costs?

A

Direct Materials + Direct Labor

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3
Q

What are conversion costs?

A

Direct Labor + MF Overhead

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4
Q

What are product costs?

A 
DM
DL
MF Overhead
Normal spoilage
Scrap
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5
Q

What are period costs?

A

SGA
Marketing
Abnormal spoilage

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6
Q

What is the formula to apply overhead?

A

Estimated OH Costs / Estimated DL $ or hours
x
Actual production

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7
Q

What is journal entry to record applied OH?

A

DR WIP Control

CR Factory OH Applied

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8
Q

What is journal entry to record actual OH?

A

DR Factory OH Control

CR Cash

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9
Q

What is formula for Direct Materials Used?

A 
Beginning DM
\+ Purchases
= Available
-  Ending DM
= DM Used
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10
Q

What is formula for Cost of Goods Manufactured?

A 
Beginning WIP
\+ DM Used
\+ DL Incurred
\+ OH Applied
= WIP Available 
-  Ending WIP
= CoGM
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11
Q

What is formula for COGS?

A 
Beginning FG
\+ CoGM
= FG Available
-  Ending FG
= COGS
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12
Q

What is I/S format for Absorption Costing?

A 
Sales
- Var COGS
- Fixed COGS
= Gross Margin
- Var SGA
- Fixed SGA
= Operating Income
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13
Q

What is I/S format for Variable Costing?

A 
Sales 
- Var COGS
- Var SGA
= Contribution Margin
- Fixed MF Costs
- Fixed SGA
= Operating Income
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14
Q

What is the difference in operating income between Absorption and Variable Costing?

A

Fixed MF Overhead per unit times increase of decrease in inventory

EI = BI, same
EI > BI Absorption has higher income
EI < BI Variable has higher income

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15
Q

What is the formula for Break Even in units?

A

Fixed costs + Profit / CM per unit

$/$ = non $

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16
Q

What is the formula for Break Even in dollars?

A

Fixed costs + Profit / CM Ratio (CM/Sales price)

$/non $ = $

17
Q

What is the Margin of Safety?

A

Total Sales - Break Even Sales

18
Q

What is Theoretical Capacity?

A

Output is produced efficiently 100% of the time

19
Q

What is Practical Capacity?

A

Theoretical capacity is adjusted for non production time

20
Q

What is Normal Volume?

A

Theoretical capacity is adjusted for long run demand or multiple years

21
Q

What is Expected Annual Capacity?

A

Theoretical capacity is adjusted for output in the current year

22
Q

What is the formula for DM Price Variance?

A

AQ (SP - AP)

Purchasing dept has control

23
Q

What is the formula for DM Usage Variance?

A

SP (SQ - AQ)

Production dept has control

24
Q

What is the formula for DL Rate Variance?

A

AH (SR - AR)

H/R dept has control

25
Q

What is the formula for DL Efficiency Variance?

A

SR (SH - AH)

Production dept has control

26
Q

What is the formula for OH Spending Variance?

A

(ADLH x PVOHR + Budgeted Fixed OH) x Actual OH

Measures both fixed and variable costs

27
Q

What is the formula for OH Efficiency Variance?

A

PVOHR x (SDLH - ADLH)

Measures variable costs

28
Q

What is the formula for OH Volume Variance?

A

(SDLH x PFOHR) - Budgeted Fixed OH

Production has the least control over this variance
Measures fixed costs

29
Q

What are the different OH variance methods?

A

One - Net OH variance
Two - Budget (Controllable) / Volume (Non Controllable)
Three - Spending / Efficiency / Volume
Four - Fix / Var Spending / Efficiency / Vol

30
Q

What is the formula for Weighted Average process costing?

A

TC / Total Equivalent Units

31
Q

What is the formula for FIFO process costing?

A

Costs this period / Units worked on this period

32
Q

What is the formula for joint product costing using Relative Sales Value at Split-off?

A

Sales value of product at split off / Total of sales values of all products at split off
x
Joint product costs

33
Q

What is formula for Cost-Volume-Profit?

A

Sales = VC + FC + NI (before tax)

BEC (14 decks)

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