KU ACCT 201 Final Exam Review (latest
update) questions n answers
Managers 4 Primary Responsibilities - correct answer ✔✔ 1.Plan- Use "Budgets" to achieve set
goals.
2. Control- Oversee company's daily operations
3. Evaluate- "Variance Analysis" reviewed to see results
4. Make Decisions- "Cost-Benefit" analysis
Managerial Accounting - correct answer ✔✔ * Internal Primary Users
* Help managers plan and evaluate
* On Demand Reports
* Relevant Data with focus on future
* Segments of Business
*External Audits are not required
* No government agency regulates
* Affects Employee Behavior must be careful
Variable (Cost Behaviors) - correct answer ✔✔ TC= VC(X),
As volume increases, Unit cost stays constant
As volume increases, Total Cost Increases
Fixed (Cost Behaviors) - correct answer ✔✔ TC=FC
As volume increases, Unit cost decreases
As volume increases, Total Cost has No Change
,Mixed (Cost Behaviors) - correct answer ✔✔ TC= VC(x) + FC
As volume increases, Unit cost decreases
As volume increases, Total cost Increases
Relevant Range - correct answer ✔✔ Fixed for a small range of volume. Jumps to a new level
with a moderate change in volume.
Step Costs - correct answer ✔✔ Fixed for a small range of volume, then jumps to a new level
with a moderate change in volume.
Curvilinear Costs - correct answer ✔✔ Does not follow a new pattern, Approximate linear line.
A "traditional' income statement is based on - correct answer ✔✔ Cost Function
Cost of Goods Sold Expense are costs that can be - correct answer ✔✔ directly traced to the
product of service sold
Selling and Admin Expense are - correct answer ✔✔ everything else leftover from COGS
A "contribution" income statement is based on - correct answer ✔✔ Cost behavior
Account Analysis (how managers analyze cost behavior) - correct answer ✔✔ Classify every
account on the trial balance as variable, fixed or mixed. *Good starting point, does not predict
future cost*.
Scattergraphs (how managers analyze cost behavior) - correct answer ✔✔ Used to help
managers visualize relationships between cost and volume *Visual Illustration*
, High-Low Method (how managers analyze cost behavior) - correct answer ✔✔ Use the high and
low *volume* data points to estimate the cost equation.
1. Find Slope: Change in total cost/ Change in volume
2. Plug in one data point for intercept= FC
3. Write final cost equation with information found
4. Use final cost equation and plug in other volume to find other projected total cost
Regression Analysis (how managers analyze cost behavior) - correct answer ✔✔ Use all the data
points to estimate the cost equation.
Intercept Coefficient: Vertical Intercept/ Fixed Costs
X variable 1: Variable cost per unit
R Square: Determines how well the cost equation fits.
Coefficient: tells us relevant information to use (FC, VCx)
Cost Equation - correct answer ✔✔ TC= VC(x) + FC
What type of cost is "Direct Materials" (V,F,M) - correct answer ✔✔ Mixed
What type of cost is "Supplies" (V,F,M) - correct answer ✔✔ Variable
What type of cost is "Rent" (V,F,M) - correct answer ✔✔ Fixed
What type of cost is "Equipment Depreciation" (V,F,M) - correct answer ✔✔ Fixed
What type of cost is "Utilities" (V,F,M) - correct answer ✔✔ Mixed
update) questions n answers
Managers 4 Primary Responsibilities - correct answer ✔✔ 1.Plan- Use "Budgets" to achieve set
goals.
2. Control- Oversee company's daily operations
3. Evaluate- "Variance Analysis" reviewed to see results
4. Make Decisions- "Cost-Benefit" analysis
Managerial Accounting - correct answer ✔✔ * Internal Primary Users
* Help managers plan and evaluate
* On Demand Reports
* Relevant Data with focus on future
* Segments of Business
*External Audits are not required
* No government agency regulates
* Affects Employee Behavior must be careful
Variable (Cost Behaviors) - correct answer ✔✔ TC= VC(X),
As volume increases, Unit cost stays constant
As volume increases, Total Cost Increases
Fixed (Cost Behaviors) - correct answer ✔✔ TC=FC
As volume increases, Unit cost decreases
As volume increases, Total Cost has No Change
,Mixed (Cost Behaviors) - correct answer ✔✔ TC= VC(x) + FC
As volume increases, Unit cost decreases
As volume increases, Total cost Increases
Relevant Range - correct answer ✔✔ Fixed for a small range of volume. Jumps to a new level
with a moderate change in volume.
Step Costs - correct answer ✔✔ Fixed for a small range of volume, then jumps to a new level
with a moderate change in volume.
Curvilinear Costs - correct answer ✔✔ Does not follow a new pattern, Approximate linear line.
A "traditional' income statement is based on - correct answer ✔✔ Cost Function
Cost of Goods Sold Expense are costs that can be - correct answer ✔✔ directly traced to the
product of service sold
Selling and Admin Expense are - correct answer ✔✔ everything else leftover from COGS
A "contribution" income statement is based on - correct answer ✔✔ Cost behavior
Account Analysis (how managers analyze cost behavior) - correct answer ✔✔ Classify every
account on the trial balance as variable, fixed or mixed. *Good starting point, does not predict
future cost*.
Scattergraphs (how managers analyze cost behavior) - correct answer ✔✔ Used to help
managers visualize relationships between cost and volume *Visual Illustration*
, High-Low Method (how managers analyze cost behavior) - correct answer ✔✔ Use the high and
low *volume* data points to estimate the cost equation.
1. Find Slope: Change in total cost/ Change in volume
2. Plug in one data point for intercept= FC
3. Write final cost equation with information found
4. Use final cost equation and plug in other volume to find other projected total cost
Regression Analysis (how managers analyze cost behavior) - correct answer ✔✔ Use all the data
points to estimate the cost equation.
Intercept Coefficient: Vertical Intercept/ Fixed Costs
X variable 1: Variable cost per unit
R Square: Determines how well the cost equation fits.
Coefficient: tells us relevant information to use (FC, VCx)
Cost Equation - correct answer ✔✔ TC= VC(x) + FC
What type of cost is "Direct Materials" (V,F,M) - correct answer ✔✔ Mixed
What type of cost is "Supplies" (V,F,M) - correct answer ✔✔ Variable
What type of cost is "Rent" (V,F,M) - correct answer ✔✔ Fixed
What type of cost is "Equipment Depreciation" (V,F,M) - correct answer ✔✔ Fixed
What type of cost is "Utilities" (V,F,M) - correct answer ✔✔ Mixed
