ACG 2071 EXAM 2 COMPLETE STUDY GUIDE QUESTIONS AND VERIFIED ANSWERS

ACG 2071 EXAM 2 COMPLETE STUDY
GUIDE QUESTIONS AND VERIFIED
ANSWERS

●● Total variable cost =
Variable cost per unit of activity x Volume of activity
Answer: Total variable costs change in direct proportion to changes in
volume ^^


●● (Hi/Low Method) Variable cost per unit =
Answer: Change in costs / Change in volume


●● (Hi/Low Method) Total fixed costs =
Answer: Total mixed (operating) cost [find using hi] - Total variable
costs [hi x variable cost per unit]


●● (Hi/Low Method) Total variable costs =
Answer: Variable cost per unit x Units


●● (Hi/Low Method) Variable cost =
Answer: Change in cost / Change in volume

,●● (Hi/Low Method) Total operating costs =
Answer: Variable cost per unit x Units + Fixed costs


●● (Variable Costing) Income Statement
Answer: Sales Revenue =
Less Variable Expenses:
Variable COGS
Variable Operating Expenses
Contribution margin =
Less Fixed expenses:
Fixed MOH
Fixed Op. Expenses
Operating Income ===


●● Contribution Margin =
Answer: Sales Rev - VarCOGS - VarOpExp


●● Variable Costs of Goods Sold (COGS) =
Answer: Total variable costs per unit x # units sold


●● Fixed Manufacturing Costs per Unit =
Answer: Fixed MOH / # Units Manu.

, ●● (Absorption Costing) Income Statement
Answer: Sales Revenue =
Less: COGS
Gross Profit:
Less: Operating Expenses
Operating Income ===


●● Total operating expenses (Absorption Costing) =
Answer: (#units sold x Variable Op Exp per Unit Sold) + Fixed Op Exp


●● COGS (Absorption costing) =
Answer: (Total variable (manu.) costs per unit + Fixed Manu costs per
unit) x (#unit sold)


●● Operating expenses on Income Statement (Absorption costing)
Answer: Indirect costs (such as sales commission) x #units sold + Fixed
Op Exp


●● Determining cost equation from Excel regression
Answer: y = $ (x-var co)x + (x-int)


●● Total fixed costs =