KU ACCT 201 Final Exam Questions with Correct Answers
manager's four primary responsibilities - Answers 1. plan: set goals and objectives
2. control: oversee daily operations
3. evaluate: review results
4. make decisions: choose between alternatives
managerial v financial accounting - Answers managerial: internal, demand reports, relevant and future,
segmented
financial: external, GAAP financial statements, reliable and historical, consolidates
where do management accountants fit in? - Answers everywhere! cross functional teams!
types of cost behaviors - Answers 1. variable: move in direct proportion with volume
2. fixed: don't change at all
3. mixed: move in proportion with volume starting at fixed
relavent range - Answers normal level of operations; move outside of total FC and VC/unit change
example of step costs - Answers hostess or cashier
traditional income statement format - Answers rev
cogs
gross profit
selling/admin expense
operating income
contribution margin income statement format - Answers sales
variable costs
cm
fixed costs
operating income
most accurate way to analyze cost behavior - Answers regression analysis
what income statement format do managers use to predict costs - Answers high-low
, profit equation - Answers sp(x)-vc(x)-fc=proft
CM per unit - Answers SP-VC
cm ratio - Answers (sp-vc)/sp
margin of safety - Answers actual units sold-break even units
margin of safety percentage - Answers margin of safety/ sales
calculate CVP with multiple products - Answers 1. calculate cm per unit
2. sales mix
3. WACM
4. use WACM to find breakeven (amount to cover/WACM)
5. sales mix to find how many of each product to break even
3 types of companies - Answers 1. manufacturing: convert raw materials to finished product (ex:
hershey, P & G)
2. merchandising: adds value to finished product (ex: target)
3. service: provides intangible service (ex: advertisement)
period costs - Answers R&D, Design, Market, Distribute, Customer Service
•expensed in the period in which they are incurred
product costs - Answers purchase/production (DM, DL, MOH)
•costs incurred during the production or purchase of the good, held on balance sheet until sold
flow of costs - Answers direct materials->WIP
direct labor->WIP
indirect labor, materials, other->moh
moh->wip
wip->f/g
f/g->COGS
Rev-COGS=GP
job costing - Answers •allocate moh per job
manager's four primary responsibilities - Answers 1. plan: set goals and objectives
2. control: oversee daily operations
3. evaluate: review results
4. make decisions: choose between alternatives
managerial v financial accounting - Answers managerial: internal, demand reports, relevant and future,
segmented
financial: external, GAAP financial statements, reliable and historical, consolidates
where do management accountants fit in? - Answers everywhere! cross functional teams!
types of cost behaviors - Answers 1. variable: move in direct proportion with volume
2. fixed: don't change at all
3. mixed: move in proportion with volume starting at fixed
relavent range - Answers normal level of operations; move outside of total FC and VC/unit change
example of step costs - Answers hostess or cashier
traditional income statement format - Answers rev
cogs
gross profit
selling/admin expense
operating income
contribution margin income statement format - Answers sales
variable costs
cm
fixed costs
operating income
most accurate way to analyze cost behavior - Answers regression analysis
what income statement format do managers use to predict costs - Answers high-low
, profit equation - Answers sp(x)-vc(x)-fc=proft
CM per unit - Answers SP-VC
cm ratio - Answers (sp-vc)/sp
margin of safety - Answers actual units sold-break even units
margin of safety percentage - Answers margin of safety/ sales
calculate CVP with multiple products - Answers 1. calculate cm per unit
2. sales mix
3. WACM
4. use WACM to find breakeven (amount to cover/WACM)
5. sales mix to find how many of each product to break even
3 types of companies - Answers 1. manufacturing: convert raw materials to finished product (ex:
hershey, P & G)
2. merchandising: adds value to finished product (ex: target)
3. service: provides intangible service (ex: advertisement)
period costs - Answers R&D, Design, Market, Distribute, Customer Service
•expensed in the period in which they are incurred
product costs - Answers purchase/production (DM, DL, MOH)
•costs incurred during the production or purchase of the good, held on balance sheet until sold
flow of costs - Answers direct materials->WIP
direct labor->WIP
indirect labor, materials, other->moh
moh->wip
wip->f/g
f/g->COGS
Rev-COGS=GP
job costing - Answers •allocate moh per job
