ACC406 MIDTERM REVIEW
Indirect Cost - Answer-Hard to trace
Example: The transportation of pizza toppings, the wages for the employees
Direct Cost - Answer-Easy to trace, physically observed
Behaviour of fixed cost - Answer-When the cost stays constant whether or not the output increases or
decreases
Mixed cost - Answer-The combination of variable and fixed cost.
Behaviour of variable cost - Answer-The cost varies in proportion to the output increase or decrease
Characteristics of Financial Accounting (5) - Answer-External, historical, must follow rules, objective,
information about the entire firm as a whole
Objectives of Managerial Accounting (3) - Answer-- Information is used for planning the organizations
actions
- Information is used for controlling the organizations actions
- Information is used to make decisions
Cost of Goods Manufactured Formula - Answer-DM + DL + OH + Beginning WIP - End WIP
Cost of Goods Sold Formula - Answer-Beginning Finished Goods + COGM - End Finished Goods
Indirect Cost - Answer-Hard to trace
Example: The transportation of pizza toppings, the wages for the employees
Direct Cost - Answer-Easy to trace, physically observed
Behaviour of fixed cost - Answer-When the cost stays constant whether or not the output increases or
decreases
Mixed cost - Answer-The combination of variable and fixed cost.
Behaviour of variable cost - Answer-The cost varies in proportion to the output increase or decrease
Characteristics of Financial Accounting (5) - Answer-External, historical, must follow rules, objective,
information about the entire firm as a whole
Objectives of Managerial Accounting (3) - Answer-- Information is used for planning the organizations
actions
- Information is used for controlling the organizations actions
- Information is used to make decisions
Cost of Goods Manufactured Formula - Answer-DM + DL + OH + Beginning WIP - End WIP
Cost of Goods Sold Formula - Answer-Beginning Finished Goods + COGM - End Finished Goods
