Accrual accounting provides a uniform way to measure an organization's financial performance.
1. Why do most companies adhere to GAAP for their basic internal financial statements?
differentiating itself from its competitors.
2. The key to a company's success is creating value for customers while
Solution : Sales = 50, 000 + ( 63,000/ (1-.30)) /200
= (50,000 + 90000)/200
= 140,000/200 = 700
= 700 Units * $600 = $420,000
FORMULA : Sales = FC + (Target Net Income / (1- Tax Rate))/Contribution Margin
How to get Contribution Margin
CM = Total revenues
Tee Times, Inc., produces and sells the finest quality golf clubs in all of Clay County. The company expects the following revenues and costs in 2004 for its Elite Quality golf club sets:
Revenues (400 sets sold @ $600 per set) $240,000
Variable costs 160
250
Bep= TFC/CM
250= 50,000/200
Tee Times, Inc., produces and sells the finest quality golf clubs in all of Clay County. The company expects the following revenues and costs in 2004 for its Elite Quality golf club sets:
Revenues (400 sets sold @ $600 per set) $240,000
Variable costs 160
700
= (50,000 + 90000)/200
= 140,000/200 = 700
CM = Sp- VP
200= 600- 400
Tee Times, Inc., produces and sells the finest quality golf clubs in all of Clay County. The company expects the following revenues and costs in 2004 for its Elite Quality golf club sets:
Revenues (400 sets sold @ $600 per set) $240,000
Variable costs 160
Contribution Margin equals sales less variable costs
CM = S - VC
Contribution Margin per unit equals unit selling price less variable cost per unit
CMu = SP - VCu
Contribution Margin
challenges facing managers.
The design of a management accounting system should be guided by the
improving customer focus and customer satisfaction.
Four themes are common to many managers. The critical theme for all of these is
budget
A quantitative expression of a plan of action is called a(n)
managers within the organization.
The primary users of information provided by a management accountant are
accountants are focused on decision support.
A managerial emphasis for cost accounting means
Technical supremacy
Which of the following is not a key guideline used by management accountants?
a. Different costs for different purposes
b. Cost-benefit approach
c. Behavioral consideration
d. Technical supremacy
Staff
________ management exists to provide advice and assistance to those responsible for attaining the objectives of the organization.
Compliance
Which of the following is not one of the ethical responsibilities of a management accountant?
a. Compliance
b. Confidentiality
c. Integrity
d. Objectivity
cost object.
Tanner Co. management desires cost information regarding their Rawhide brand. The Rawhide brand is a(n)
individual student instruction.
2. The cost of replacement light bulbs on campus would be a direct cost to a college but would need to be allocated as an indirect cost to
$850,000
3. What is the total fixed cost of the shipping department of EZ-Mail Clothing Co. if it has the following information for 2002?
*Salaries $800,000 75% of employees on guaranteed contracts
*Packaging $400,000 depending on size of item(s) shipped
*Postage
Their costs were mostly fixed costs and the amount produced this year was less than last year.
Morton Graphics successfully bid on jobs printing standard notebook covers during the year using last year's price of $0.27 per cover. This amount was calculated from prior year costs, noting that no changes in any costs had occurred from the past year to
Service
Which type of company does not have inventoriable costs?
direct materials, work in process, and finished goods.
The three categories of inventories commonly found in many manufacturing companies are
recorded as assets when incurred.
Inventoriable costs are _________________________________________.
all costs in the income statement other than cost of goods sold.
Period costs are...
identified as period cost.
The cost of a product can be measured as any of the following except as cost
help managers make different decisions.
The primary focus of cost management is to
The time value of money is incorporated in the analysis.
Which of the following is not an assumption of cost-volume-profit analysis?
total revenue - total variable costs.=Contribution margin
Contribution margin is calculated as
use sensitivity analysis to explore various what-if scenarios in order to analyze changes in revenues or costs or quantities.
One way for managers to cope with uncertainty in profit planning is to
$1000 fixed fee plus $5 per person attending
The Beta Mu Omega Chi (BMOC) fraternity is looking to contract with a local band to perform at its annual mixer. If BMOC expects to sell 250 tickets to the mixer at $10 each, which of the following arrangements with the band will be in the best interest o
Twin sold more of product W and less of product M than expected.
Twin Products Company produces and sells two products. Product M sells for $12 and has variable costs of $6. Product W sells for $15 and has variable costs of $10. Twin predicted sales of 25,000 units of M and 20,000 of W. Fixed costs are $60,000 per mont
used with the same formulas as used with a single cost driver.
In the situation of multiple cost drivers, CVP analysis can be
Only manufacturing-sector companies use the term "gross margin" in their income statements.
Which of the following statements is true?
cost pool.
A cost-allocation base may be any of the following except a
Job costing
A company that manufactures dentures for use by local dentists would use
identify the job that is the chosen cost object.
The first step in the seven-step approach to job costing is to
calculated by using the budgeted rate times actual quantity of allocation base.
Using normal costing rather than actual costing requires that the allocating of indirect manufacturing costs to work in process be
To be tailored to the underlying operations of the company
What is the best design for costing systems?
Manufacturing Overhead Control
Which of the following accounts is not classified as an asset?
Work-in-Process Control account.
The costs incurred on jobs which are currently in production but are not yet complete would appear in the
$192,880
WHY? because the rest is all over 200,000
means that COGS ending balance should Be 200,000 is over allocated
The Precision Widget Company had the following balances in their accounts at the end of the accounting period:
Work in Process $ 5,000
Finished Goods 20,000
Cost of Goods Sold 200,000
If their manufacturing overhead was overallocated by $8,000 and Precisi
$22.50
105,000/70000=1.5 x15= 22.50
Liberty Box Company calculated an indirect-cost rate of $12.50 per labor hour for fringe benefits for use in their normal costing system. At the end of the year, the actual costs of fringe benefits was $105,000 more than the budgeted amount used to comput
Year-end bonuses paid to the professional staff are difficult to trace to individual jobs.
If each professional in a service company is paid on an annual salary basis, why might the firm want to use a predetermined or budgeted rate for direct or professional labor?