CPA - BEC NEW TEST WITH 100% CORRECT SOLUTIONS
prime cost - ANSWER DM+DL
conversion costs - ANSWER DL + OH applied
Cost Volume Profit Analysis - ANSWER used by managers to forecast profits at different
levels of sales and production volume. The point at which revenues equal total costs is
called the "break even point" Cost volume profit is synonymous with break even
analysis.
High-low method - ANSWER simple technique used to estimate the fixed and variable
portions of cost, usually production costs
VOH efficiency variance - ANSWER (Actual Labor Hours - Standard hours allowed for
actual production) * Standard rate
Production volume variance - ANSWER (actual production - budgeted production) * per
unit standard fixed OH rate
Sales Price Variance - ANSWER (Actual SP/Unit - Budgeted SP/unit) * Actual Sold Units
pareto diagram - ANSWER histogram, bar and lines determine quuality control issues
that are the most frequent
control chart - ANSWER goal post conformance, used to plot a comparison of actual
results by batch or other suitable constant interval to an acceptable range
Benchmarking - ANSWER comparing its financial data to published information in order
, to determine if optimal results had been achieved. Benchmarking is the process often
used to identify standards that define or quantify critical success factors.
Nonfinancial measures - ANSWER effective way to observe problems as they occur and
thereby direct attention to potential errors or inefficiencies before poor financial results
are produced. "bench marking" "best practices"
Partial productivity ratio- ANSWER (output/specific quantity) reflects the quantity of the
output produced relative to the quantity of individual outputs used MOST FREQUENTLY
USED MATERIAL OR LABOR QUANTITY
Total Factor Productivity Ratios - ANSWER (output/total costs) reflect the quantity of all
outputs produced relative to the costs of all inputs used MATERIAL OR LABOR COSTS
Fishbone diagram- ANSWER Elements used: 1) materials 2)manpower 3)machinery
4)method
Effective performance measures - ANSWER They should relate to the goals of
organization, be objective and easily measured, be under the control of the employee,
and understood by the employees. Contribution to the goals of the organization is a
characteristic of an effective performance measure.
By product - ANSWER minor products of relatively small value that incidentally result
from the manufacture of the main product
joint cost - ANSWER costs incurred up to the split off point
Separable Costs - ANSWER costs occurred after split off
split off point - ANSWER point in the production process where joint products can be
recognized as individual products
prime cost - ANSWER DM+DL
conversion costs - ANSWER DL + OH applied
Cost Volume Profit Analysis - ANSWER used by managers to forecast profits at different
levels of sales and production volume. The point at which revenues equal total costs is
called the "break even point" Cost volume profit is synonymous with break even
analysis.
High-low method - ANSWER simple technique used to estimate the fixed and variable
portions of cost, usually production costs
VOH efficiency variance - ANSWER (Actual Labor Hours - Standard hours allowed for
actual production) * Standard rate
Production volume variance - ANSWER (actual production - budgeted production) * per
unit standard fixed OH rate
Sales Price Variance - ANSWER (Actual SP/Unit - Budgeted SP/unit) * Actual Sold Units
pareto diagram - ANSWER histogram, bar and lines determine quuality control issues
that are the most frequent
control chart - ANSWER goal post conformance, used to plot a comparison of actual
results by batch or other suitable constant interval to an acceptable range
Benchmarking - ANSWER comparing its financial data to published information in order
, to determine if optimal results had been achieved. Benchmarking is the process often
used to identify standards that define or quantify critical success factors.
Nonfinancial measures - ANSWER effective way to observe problems as they occur and
thereby direct attention to potential errors or inefficiencies before poor financial results
are produced. "bench marking" "best practices"
Partial productivity ratio- ANSWER (output/specific quantity) reflects the quantity of the
output produced relative to the quantity of individual outputs used MOST FREQUENTLY
USED MATERIAL OR LABOR QUANTITY
Total Factor Productivity Ratios - ANSWER (output/total costs) reflect the quantity of all
outputs produced relative to the costs of all inputs used MATERIAL OR LABOR COSTS
Fishbone diagram- ANSWER Elements used: 1) materials 2)manpower 3)machinery
4)method
Effective performance measures - ANSWER They should relate to the goals of
organization, be objective and easily measured, be under the control of the employee,
and understood by the employees. Contribution to the goals of the organization is a
characteristic of an effective performance measure.
By product - ANSWER minor products of relatively small value that incidentally result
from the manufacture of the main product
joint cost - ANSWER costs incurred up to the split off point
Separable Costs - ANSWER costs occurred after split off
split off point - ANSWER point in the production process where joint products can be
recognized as individual products
