WGU C253- Advanced Managerial Accounting

AC361 EXAM 3 QUESTIONS WITH COMPLETE
SOLUTIONS.
how,are,total,pre-tax,profit,and,CM,related?,ANS,-total,pre-tax,profit,raises,@,rate,of,CM,per,unit



After,tax,to,Pre,tax,profit,formula,ANS,-AT,/,(1,-,tax,rate),=,PT



BEP,formula,in,units,&,dollars,ANS,-FC,/,CM

FC,/,CM,ratio,=,BEP,in,dollars



CM,ratio,formula,ANS,-CM,/,Rev



CM,=,ANS,-rev,-,cost



Margin,of,safety,in,dollars,,units,,&,%,ANS,-[actual,units,-,Break,even,units]

[actual,sales,$,-,BE,sales,$]

[MOS,in,units($)],/,actual,sales,in,units($)],<--,%



how,much,sales,volume,is,needed,to,reach,a,certain,profit?

formula,ANS,-X,=,(PBT,+,FC),/,CM



strategic,planning,-->,tactical,planning,-->,budget,ANS,-strategic:,long,term,(5-
10,yrs),,top,level,management

tactical:,short,term,(1-18,months),,top,&,middle,mgmnt

budget:,ST,,top,middle,&,operational,mgmt



Sales,Budget,ANS,-Unit,of,sales,*

Selling,Price,per,unit

=,Dollars,of,sales

, Production,Budget,formula,ANS,-Units,of,sales

+,EI

-,BI

=,units,to,be,produced



Purchases,Budget,formula,ANS,-units,to,be,produced

+,EI

-,BI

=,units,to,be,purchased



Direct,Labor,budget,formula,ANS,-Units,to,be,produced

x,standard,time,/,unit

=,total,stand,time,allowd

x,per,hr,DL,cost

=,total,cost



OH,budget,formula,ANS,-predicted,activity,base

*,var,rate,per,unit

=,total,var,OH

+,FOH

=,total,OH,=,total,cost,w/o,depreciation



S&A,budget,formula,ANS,-Predicted,sales,dollars

*,var,S&A,rate,per,dollar

=,var,S&A,cost

+,fixed,S&A

=,total,S&A,cost