ACCT 2102 Exam 1 Review
applied overhead formula Correct Answers predetermined
overhead rate x actual labor hours
Balance Sheet Correct Answers 3 Inventory accounts of a
manufacturer
Raw Materials, WIP, Finished Goods Inventory
Balanced Scorecard Correct Answers focuses on both financial
and nonfinancial aspects to evaluate the company.
Break Even $ Broken down Correct Answers FC/(SP-VC/SP)
Break Even in Dollars Formula Correct Answers fixed costs /
contribution margin ratio
Break Even Point in Units Formula Correct Answers fixed
costs / contribution margin per unit
Break Even Sales $ Correct Answers FC/WACMR
Break Even Sales Units Correct Answers FC/WACM
Break Even Units Broken down Correct Answers FC/(SP-VC)
Contribution Margin Ratio Formula Correct Answers Unit
Contribution Margin / Unit Selling Price
Controlling Correct Answers •Keep and maintain activities on
track
, •Determine whether goals are met
•Decide changes needed to get back on track
•May use an informal or formal system of evaluations
Cost Accounting Correct Answers •Focuses on measuring,
recording, and reporting product costs
•Two basic types: (1) a process cost system and (2) a job order
cost system
• up-to-date information on cost of a product
Cost of Goods Manufactured Formula Correct Answers
Beginning WIP
+ Total Manufacturing Cost
=Total WIP -End WIP= CGM
Cost of Goods Sold Equation Correct Answers Beginning
Finished Goods Inventory
+ Cost of Goods Manufactured
= Cost of Goods Available for Sale
- Ending Finished Goods Inventory
= Cost of Goods Sold
Cost-Volume-Profit Analysis Correct Answers •A statement
for internal use.
•Classifies costs as fixed or variable.
•Reports contribution margin in the body of the statement.
oContribution margin - amount of revenue remaining after
deducting variable costs.
•Reports the same net income as a traditional income statement.
applied overhead formula Correct Answers predetermined
overhead rate x actual labor hours
Balance Sheet Correct Answers 3 Inventory accounts of a
manufacturer
Raw Materials, WIP, Finished Goods Inventory
Balanced Scorecard Correct Answers focuses on both financial
and nonfinancial aspects to evaluate the company.
Break Even $ Broken down Correct Answers FC/(SP-VC/SP)
Break Even in Dollars Formula Correct Answers fixed costs /
contribution margin ratio
Break Even Point in Units Formula Correct Answers fixed
costs / contribution margin per unit
Break Even Sales $ Correct Answers FC/WACMR
Break Even Sales Units Correct Answers FC/WACM
Break Even Units Broken down Correct Answers FC/(SP-VC)
Contribution Margin Ratio Formula Correct Answers Unit
Contribution Margin / Unit Selling Price
Controlling Correct Answers •Keep and maintain activities on
track
, •Determine whether goals are met
•Decide changes needed to get back on track
•May use an informal or formal system of evaluations
Cost Accounting Correct Answers •Focuses on measuring,
recording, and reporting product costs
•Two basic types: (1) a process cost system and (2) a job order
cost system
• up-to-date information on cost of a product
Cost of Goods Manufactured Formula Correct Answers
Beginning WIP
+ Total Manufacturing Cost
=Total WIP -End WIP= CGM
Cost of Goods Sold Equation Correct Answers Beginning
Finished Goods Inventory
+ Cost of Goods Manufactured
= Cost of Goods Available for Sale
- Ending Finished Goods Inventory
= Cost of Goods Sold
Cost-Volume-Profit Analysis Correct Answers •A statement
for internal use.
•Classifies costs as fixed or variable.
•Reports contribution margin in the body of the statement.
oContribution margin - amount of revenue remaining after
deducting variable costs.
•Reports the same net income as a traditional income statement.
