ACCT201B

flexible budget - Answer takes into account changes in cost due to changes in an activity. tells what costs or revenue it should have been for a given lvl of activity good for -measure performance -identify discrepancies between budget & actual costs unlike a planning budget where has set lvl of activity at start of period (static planning). is good for -planning but not evaluating performance (unless similar to both) how flexible budget works - Answer compare what actually...

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4 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS

Prime Costs - Answer Direct Materials + Direct Labor Conversion Costs - Answer Direct Labor + Manufacturing Overhead Cost of Goods Manufactured - Answer Beg. WIP+ Direct Materials + Direct Labor + Manufacturing Overhead - End WIP Finished Goods - Answer Beg. WIP + Direct Materials + Direct Labor + Manufacturing Overhead - End WIP Cost of Goods Sold - Answer Beg. Finished Goods + Cost of Goods Manufactured - Ending Finished Goods Raw Materials used in Production - An...

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6 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS

Sphere Company produces two products, Alpha and Beta. Alpha is a high-volume item totaling 20,000 units annually. Beta is a low-volume item totaling only 6,000 units per year. Alpha requires one hour of direct labor for completion, while each unit of Beta requires 2 hours. Therefore, total annual direct labor hours are 32,000 (20,000 + 12,000). Expected annual manufacturing overhead costs are $640,000. Sphere uses a traditional costing system and assigns overhead based on direct labor hours. Eac...

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20 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS

What are the three major activities? - Answer 1 Planning 2 Directing and motivating 3 Controlling Planning - Answer Involves establishing a basic strategy, selecting a course of action, and specifying how the action will be implemented. Identify alts and select the best that fits the org's strategy and objectives. Directing and Motivating - Answer involves mobilizing people to carry out plans and run routine operations Controlling - Answer involves ensuring that the ...

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15 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS

Managerial Accounting - Answer concerned with providing information to managers within an organization so that they can formulate plans, control operations, and make decisions. Direct Costs - Answer Costs that can be easily and conveniently traced to a specified cost object. indirect costs - Answer Costs that cannot be easily and conveniently traced to a specified cost object. classification of manufacturing costs - Answer direct materials, direct labor, manufacturing overh...

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3 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS

Simple Rate of Return Formula - Answer Annual incremental net operating income/ initial investment Simple Rate of Return - Answer -focuses on accounting net operating income: if new equipment is replacing old then the initial investment is the cost of the new equipment - any salvage value from the old. -DOESNT consider the time value of money: will not be an accurate guide to the probability of an investment project Relevant cost - Answer a cost that differs between alternatives:...

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4 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS

Which one is not one of the three major elements of product costs? A) direct materials B) variable costs C) direct labor D) manufacturing overhead - Answer B) variable costs Which cost is not a period cost? A) the salary of the company president's secretary B) janitorial service for factory offices C) depreciation of an office copy machine D) sales commissions E) the cost of a general accounting office - Answer B) janitorial service for factory offices The variable c...

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6 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS

Prime Cost - Answer Direct Materials + Direct Labor Conversion Cost - Answer Direct Labor + Manufacturing Overhead Product Cost - Answer Direct Materials + Direct Labor + Manufacturing Overhead Period Cost - Answer Selling Expense + Admin Expense Variable Manufacturing Cost - Answer Direct materials + Direct labor + Variable manufacturing overhead examples of manufacturing overhead - Answer indirect materials, indirect labor, depreciation of manufacturing equipme...

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7 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS

Master Budget - Answer The master budget communicates management's plans throughout the organization, allocates resources, and coordinates activities. What are budgets used for? - Answer planning and control Planning - Answer involves developing goals and preparing various budgets to achieve those goals Control - Answer gathering feedback to ensure plan is properly executed or modified as factors of change occur What are budgets/framework - Answer is a detailed quan...

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9 pages

Written in 2026/2027

Grade A+

COCOSOLUTIONS