Final

Question 1

3 types of product costs are…

Answer 1

Direct Materials, Direct Labor, MOH

Question 2

3 categories of manufacturing overhead

Answer 2

Indirect Materials, Indirect Labor, Other cost

Question 3

Product costs are included in ___ and are ___ when sold

Answer 3

Inventory, COGS

Question 4

2 Basic categories of period costs…

Answer 4

Selling Costs, Administrative Cost

Question 5

Fixed costs don’t change when…

Answer 5

Activity changes

Question 6

Variable changes directly with…

Answer 6

Activity

Question 7

Mixed costs use what formula

Answer 7

TC = VC(Variable rate x Units) + Fixed

Question 8

Variable costs per unit are ___, but total variable costs ___ when activity increases

Answer 8

Constant, Increases

Question 9

Fixed costs in total are ___, but fixed costs per unit ___ when activity increases

Answer 9

Constant, Decreases

Question 10

Direct Labor, Direct Materials, and MOH all combine to become…

Answer 10

Work in Process Inventory (WIP)

Question 11

Once the product is completed it becomes…

Answer 11

Finished Goods Inventory

Question 12

Once the product is sold it becomes

Answer 12

Cost of Goods Sold

Question 13

The formula for applying overhead is

Answer 13

Estimated MOH / Estimated Cost

Question 14

The formula for applying overhead is called

Answer 14

Predetermined Overhead Rate

Question 15

Overhead is applied by multiplying ___ by ___

Answer 15

PDOH, Actual Cost

Question 16

Debit MOH when ___ MOH is incurred and credit MOH when ___ MOH

Answer 16

Actual, Applying *

Question 17

The ending balance in MOH is…

Answer 17

Always zero

Question 18

MOH is underapplied when there is a ___ balance

Answer 18

Debit

Question 19

MOH is overapplied when there is a ___ balance

Answer 19

Credit

Question 20

CVP uses a ___ income statement

Answer 20

Contribution Format

Question 21

Break even formula is

Answer 21

Fixed Costs / Unit CM

Question 22

Target profit formula is

Answer 22

(Fixed Costs + Target Profit) / CM per Unit

Question 23

Budgeting begins with the ___ budget

Answer 23

Sales

Question 24

To prepare a cash receipts or disbursements budget, you must look to ___ periods

Answer 24

Prior

Question 25

To prepare a purchases or production budget, you must look to ___ periods

Answer 25

Future

Question 26

The two variances in a flexible budget are ___ and ___

Answer 26

Activity, Spending

Question 27

The difference between the actual costs and the flexible budget costs is called the ___ variance

Answer 27

Spending

Question 28

The two basic measures are the ___ and ___

Answer 28

ROI, Residual Income

Question 29

Return on Investment formula is

Answer 29

NOI / Average Operating Assests

Question 30

The formula for residual income

Answer 30

NOI - (Required rate of return x Average Operating Assets)

Question 31

What costs do not go away when a segment goes away

Answer 31

Common Fixed Costs

Question 32

What costs do go away when a segment goes away

Answer 32

Traceable Fixed Costs

Question 33

What is the issue with ROI

Answer 33

Profitable investments may be rejected

Question 34

A relance cost either has ___ or it differs between ___

Answer 34

A bearing on the future, Alternatives

Question 35

Are opportunity costs relevant

Answer 35

Yes

Question 36

Are sunk costs relevant

Answer 36

No

Question 37

The sections of a statement of clash flows are ___, ___, and ___

Answer 37

Operating, Investing, Financing

Question 38

Any transaction that involves acquiring or disposing of LT Assets

Answer 38

Investing

Question 39

Any transaction that involves obtaining cash from or repaying lenders or owners

Answer 39

Financing

Question 40

Any transaction not categorized as financing or investing

Answer 40

Operating

Question 41

Noncash items adjusted for in the operating section include ___, ___, and ___

Answer 41

Depreciation, Amortization, Gains/Losses

Question 42

When adjusting for depreciation expense you must ___ to the statement of cash flows

Answer 42

Add it back

Question 43

When adjusting for gains you must ___ to the statements of cash flows

Answer 43

Subtract it within

Question 44

Decreases in A/R should be ___ in the statement

Answer 44

Added

Question 45

Decreases in A/P should be __ in the statement

Answer 45

Subtracted

Question 46

Identify the section of Cash Flow: Repurchased common stock

Answer 46

Financing

Question 47

Identify the section of Cash Flow: Sell equipment

Answer 47

Investing (Cash), Operating (Gain/Loss)

Question 48

Identify the section of Cash Flow: Accounts payable

Answer 48

Operating

Question 49

Identify the section of Cash Flow: Loan money to an employee

Answer 49

Investing

Question 50

Identify the section of Cash Flow: Pay dividend to shareholders

Answer 50

Financing

Question 51

Identify the section of Cash Flow: Depreciation Expense

Answer 51

Operating

Question 52

What do each of these measure: Gross Margin %

Answer 52

Profiablility

Question 53

What do each of these measure: Earnings per share (EPS)

Answer 53

Market Performance

Question 54

What do each of these measure: Working Captial

Answer 54

Liquidity

Question 55

What do each of these measure: Current Ratio

Answer 55

Liquidity

Question 56

What do each of these measure: Average days to collect

Answer 56

Asset Management

Question 57

What do each of these measure: Average Sale period (days in inventory)

Answer 57

Asset Management

Question 58

What do each of these measure: P/E ration

Answer 58

Market performance

Question 59

What do each of these measure: DuPont Analysis

Answer 59

Profitability

Question 60

Common size income statements show all items as a percentage of ___

Answer 60

Sales

Question 61

The fraud triangle includes ___, ___, and ___

Answer 61

Opportunity, Pressure, Rationalization

Question 62

What can company's prevent the best in the fraud triangle

Answer 62

Opportunity

Question 63

Internal controls generally include ___, ___, and ___

Answer 63

Segregation of Duties, Performance Evaluations, Required Absentees

Question 64

Duties that should be done be different employees include ___, ___, and ___

Answer 64

Authorization, Custody, Recording