ACCT 2102 Final Exam
Accounting Rate of Return (ARR) Correct Answers A capital
investment analysis method that measures the profitability of an
investment. Average annual operating income / Average amount
invested.
Allocated Manufacturing Overhead Cost (CH17) Correct
Answers Predetermined overhead allocation rate * Actual
quantity of the allocation base used by each job
Annuity Correct Answers A stream of equal cash payments
made at equal time intervals
Capital Rationing Correct Answers The process of ranking and
choosing among alternative capital investments based on the
availability of funds
Constraint Correct Answers A factor that restricts the
production or sale of a product
Cost Center Correct Answers A responsibility center whose
manager is only responsible for controlling costs
Cost of Goods Manufactured (CH16) Correct Answers The
manufacturing costs of the goods that finished the production
process in a given accounting period
Cost-Plus Pricing Correct Answers A method to manage costs
and profits by determining the price. Full product cost + Desired
profit = Cost-plus price.
Accounting Rate of Return (ARR) Correct Answers A capital
investment analysis method that measures the profitability of an
investment. Average annual operating income / Average amount
invested.
Allocated Manufacturing Overhead Cost (CH17) Correct
Answers Predetermined overhead allocation rate * Actual
quantity of the allocation base used by each job
Annuity Correct Answers A stream of equal cash payments
made at equal time intervals
Capital Rationing Correct Answers The process of ranking and
choosing among alternative capital investments based on the
availability of funds
Constraint Correct Answers A factor that restricts the
production or sale of a product
Cost Center Correct Answers A responsibility center whose
manager is only responsible for controlling costs
Cost of Goods Manufactured (CH16) Correct Answers The
manufacturing costs of the goods that finished the production
process in a given accounting period
Cost-Plus Pricing Correct Answers A method to manage costs
and profits by determining the price. Full product cost + Desired
profit = Cost-plus price.
