ACG 2071 FSU EXAM 1 Weisman Questions AND Correct
Answers
controlling - ✔✔evaluating results and making
adjustments
directing - ✔✔overseeing the day-to-day operations.
Think: where can we improve? are we achieving goals?
Example of direct cost - ✔✔the cost object is a football
team and the direct cost are the equipment for the
players, salaries of coaches, etc.
Example of indirect cost - ✔✔the cost object is the deli
section of a grocery store, the indirect cost is the
salaries of the checkout clerk, the cost of carts, etc.
How do period costs flow through the financial
statements? - ✔✔these costs are expensed in the
period incurred. Also known as operating expenses or
selling, general, administrative expenses.
, How do product costs flow through the financial
statements? - ✔✔these costs flow through inventory
first (which is on the balance sheet). Once they are sold,
they show up on the income statement.
How do you calculate a predetermined MOH rate? -
✔✔Divide: estimated MOH$ / estimated allocation base
How do you calculate ABC rates? - ✔✔Divide: total
estimated activity cost / total estimated activity
allocation base
How do you calculate departmental rates? - ✔✔Divide:
total estimated MOH$ for department / total estimated
allocation base
How does a fixed cost operate? - ✔✔this type of cost is
fixed in total, but varies on a per unit basis (Rent and
the # of people you live with)
Answers
controlling - ✔✔evaluating results and making
adjustments
directing - ✔✔overseeing the day-to-day operations.
Think: where can we improve? are we achieving goals?
Example of direct cost - ✔✔the cost object is a football
team and the direct cost are the equipment for the
players, salaries of coaches, etc.
Example of indirect cost - ✔✔the cost object is the deli
section of a grocery store, the indirect cost is the
salaries of the checkout clerk, the cost of carts, etc.
How do period costs flow through the financial
statements? - ✔✔these costs are expensed in the
period incurred. Also known as operating expenses or
selling, general, administrative expenses.
, How do product costs flow through the financial
statements? - ✔✔these costs flow through inventory
first (which is on the balance sheet). Once they are sold,
they show up on the income statement.
How do you calculate a predetermined MOH rate? -
✔✔Divide: estimated MOH$ / estimated allocation base
How do you calculate ABC rates? - ✔✔Divide: total
estimated activity cost / total estimated activity
allocation base
How do you calculate departmental rates? - ✔✔Divide:
total estimated MOH$ for department / total estimated
allocation base
How does a fixed cost operate? - ✔✔this type of cost is
fixed in total, but varies on a per unit basis (Rent and
the # of people you live with)
