ACCT 2521 Final Exam UPDATED
QUESTIONS AND CORRECT ANSWERS
Managerial vs. Financial accounting - correct answer financial
- externals
- historical
- gaap
Managerial
- internal (same data)
- future
- no gaap
Product cost - correct answer direct materials, direct labor, & moh (expensed when goods sold)
-inventory -> balance sheet
~ sale ~
- cogs -> income statement
Ex: wood used in a table, labor to assemble a table, cost of electricity at the factory
Inventoriable cost
Period cost - correct answer selling, general, & administrative costs; non-manufacturing costs
Expensed immediately when incurred
Ex: salary of administrative secretary, sales commissions
Advertising and depreciation are always fixed !!!!
How to calculate prime costs - correct answer dm + dl
How to calculate conversion costs - correct answer dl + moh
, Variable costs - correct answer increase as activity increases, decreases as activity decreases
(direct proportion)
Per unit- remain constant
Ex: cost of electricity at factory
Fixed costs - correct answer in total- remain constant
Per unit- increase as activity decreases, decrease as activity increases (inverse proportion)
Ex: salary of factory supervisor
How to calculate cogs - correct answer beg inventory
+ purchases
= goods available
- ending inventory
= cogs
Traditional income statement - correct answer sales
- cogs
= gross profit
- oe
= ni
Contribution margin income statement - correct answer sales
- vc
= cm
- fc
= ni
Companies that might use job order costing - correct answer job shop, batch production
How to calculate predetermined overhead rate - correct answer estimated moh cost/estimated
activity base
QUESTIONS AND CORRECT ANSWERS
Managerial vs. Financial accounting - correct answer financial
- externals
- historical
- gaap
Managerial
- internal (same data)
- future
- no gaap
Product cost - correct answer direct materials, direct labor, & moh (expensed when goods sold)
-inventory -> balance sheet
~ sale ~
- cogs -> income statement
Ex: wood used in a table, labor to assemble a table, cost of electricity at the factory
Inventoriable cost
Period cost - correct answer selling, general, & administrative costs; non-manufacturing costs
Expensed immediately when incurred
Ex: salary of administrative secretary, sales commissions
Advertising and depreciation are always fixed !!!!
How to calculate prime costs - correct answer dm + dl
How to calculate conversion costs - correct answer dl + moh
, Variable costs - correct answer increase as activity increases, decreases as activity decreases
(direct proportion)
Per unit- remain constant
Ex: cost of electricity at factory
Fixed costs - correct answer in total- remain constant
Per unit- increase as activity decreases, decrease as activity increases (inverse proportion)
Ex: salary of factory supervisor
How to calculate cogs - correct answer beg inventory
+ purchases
= goods available
- ending inventory
= cogs
Traditional income statement - correct answer sales
- cogs
= gross profit
- oe
= ni
Contribution margin income statement - correct answer sales
- vc
= cm
- fc
= ni
Companies that might use job order costing - correct answer job shop, batch production
How to calculate predetermined overhead rate - correct answer estimated moh cost/estimated
activity base
