ACC 200 EXAM 3 VERIFIED STUDY GUIDE
Net sales formula - Answers - Sales-sales return and allowences- sales discount=net
sales
Gross Profit - Answers - Net sales-COMS
Break even - Answers - Fixed costs/unit CM
How many units we must sell to earn a profit of $0
High low - Answers - (High cost-low cost)/(high volume-low volume)
Fixed Cost Total - Answers - Total cost- (variable cost per unit)(units)
Standard cost formula - Answers - Standard price * standard quantity
Direct materials variance - Answers - Actual quantity(actual price-standard price)
Direct labor variance - Answers - Standard price(actual quantity- standard quantity)
Direct labor rate variance - Answers - Actual time( actual rate- standard rate)
Target costs - Answers - Expected selling price - desired profit
Direct labor time variance - Answers - Standard rate ( actual time- standard time)
Direct materials quantity variance - Answers - Standard price ( actual quantity-standard
quantity)
Actual cost - Answers - Actual price * actual quantity
Total actual cost of the product
Actual quantity - Answers - Quantity the company actually used
Actual price - Answers - Amount the company actually used
Standard cost - Answers - Standard price * standard quantity
Total planned cost of the product
Standard quantity - Answers - Quantity the company planned to use
, Standard price - Answers - Amount the company planned to use
Flexible - Answers - Projected revenue and expenses for several possible activity levels
Static - Answers - Projected revenue and expenses for only one level of activity
Zero-based budgeting - Answers - Managers base budget on new figures each period
Fosters overspending - Answers - An attitude of "spend it or lose it" for budgeted
expenditures (a drop in expenditures in one period will affect future period)
Fosters budgetary slack - Answers - Managers tend to build low revenue growth and
high expenses into incremental budgets so they will always have favorable variances
Incremental budgeting - Answers - Managers base budgets on revenue and expenses
levels of past periods with projected increases for the future periods
Continuous budgeting - Answers - Budgets are projected for 12 months into the future.
As each month concludes another future month is added
Budget - Answers - Financial plan written in advance of an operating period, planning
(projecting) for the future
Markup percentage - Answers - Total goods/total cost
Price per unit - Answers - Total cost per unit-desired profit per unit
Price - Answers - Total cost + desired goods
Desired profit - Answers - A percentage of the assets (invested assets) that managers
were given to make the product with
Cost-plus pricing - Answers - The price set for a product must be high enough to cover
total costs and provide a profit
Market-based pricing (target cost method) - Answers - Product price is determined by
external market forces
Total cost=pricr- profit
Cost plus pricing (total cost method) - Answers - Total costs are known
Product price=total price+ profit
Total price formula tells us - Answers - How many units we must sell to earn a profit of
$(whatever we want)
Net sales formula - Answers - Sales-sales return and allowences- sales discount=net
sales
Gross Profit - Answers - Net sales-COMS
Break even - Answers - Fixed costs/unit CM
How many units we must sell to earn a profit of $0
High low - Answers - (High cost-low cost)/(high volume-low volume)
Fixed Cost Total - Answers - Total cost- (variable cost per unit)(units)
Standard cost formula - Answers - Standard price * standard quantity
Direct materials variance - Answers - Actual quantity(actual price-standard price)
Direct labor variance - Answers - Standard price(actual quantity- standard quantity)
Direct labor rate variance - Answers - Actual time( actual rate- standard rate)
Target costs - Answers - Expected selling price - desired profit
Direct labor time variance - Answers - Standard rate ( actual time- standard time)
Direct materials quantity variance - Answers - Standard price ( actual quantity-standard
quantity)
Actual cost - Answers - Actual price * actual quantity
Total actual cost of the product
Actual quantity - Answers - Quantity the company actually used
Actual price - Answers - Amount the company actually used
Standard cost - Answers - Standard price * standard quantity
Total planned cost of the product
Standard quantity - Answers - Quantity the company planned to use
, Standard price - Answers - Amount the company planned to use
Flexible - Answers - Projected revenue and expenses for several possible activity levels
Static - Answers - Projected revenue and expenses for only one level of activity
Zero-based budgeting - Answers - Managers base budget on new figures each period
Fosters overspending - Answers - An attitude of "spend it or lose it" for budgeted
expenditures (a drop in expenditures in one period will affect future period)
Fosters budgetary slack - Answers - Managers tend to build low revenue growth and
high expenses into incremental budgets so they will always have favorable variances
Incremental budgeting - Answers - Managers base budgets on revenue and expenses
levels of past periods with projected increases for the future periods
Continuous budgeting - Answers - Budgets are projected for 12 months into the future.
As each month concludes another future month is added
Budget - Answers - Financial plan written in advance of an operating period, planning
(projecting) for the future
Markup percentage - Answers - Total goods/total cost
Price per unit - Answers - Total cost per unit-desired profit per unit
Price - Answers - Total cost + desired goods
Desired profit - Answers - A percentage of the assets (invested assets) that managers
were given to make the product with
Cost-plus pricing - Answers - The price set for a product must be high enough to cover
total costs and provide a profit
Market-based pricing (target cost method) - Answers - Product price is determined by
external market forces
Total cost=pricr- profit
Cost plus pricing (total cost method) - Answers - Total costs are known
Product price=total price+ profit
Total price formula tells us - Answers - How many units we must sell to earn a profit of
$(whatever we want)
