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