ACCT 346 Final Exam

$33.00

ACCT 346 Final Exam 
(TCO 8) A company must incur annual fixed costs of $4,000,000 and variable costs of

SKU: ACCT 346 Final Exam Categories: , Tags: , ,

Description

ACCT 346 Final Exam 

ACCT 346 Final Exam

A+

(TCO 1) How does managerial and financial accounting differ in terms of the amount of detail presented and nonmonetary and monetary information? (Points : 15)

ACCT346 How Does Managerial Financial

According to our book, managerial and financial accounting are different…

(TCO 2) What is an indirect labor cost?  What is an example of an indirect labor cost?  (Points : 15)

ACCT346 What is Indirect Labor Cost

Indirect labor cost is a labor cost incurred however cannot be directly traced to a

(TCO 3) What is the difference between job order and process costing?  (Points : 15)

ACCT346 difference between job order

The difference between Job Order Costing and Process Costing is…

(TCO 4)  What is a fixed cost?  What is an example of a fixed cost? (Points : 15)

ACCT346 What is Fixed Cost

As our book states, “fixed costs” are costs that do not change in…

(TCO 5) What is full costing?  How does it differ from variable costing? (Points : 15)

ACCT346 What is Full Costing

Full costing is a method in which manufacturing…

(TCO 6)  What is the first step in the cost allocation process? What is done in this step? (Points : 15)

ACCT346 What is First Step in Cost Allocation

The various costs are identified and the allocation…

(TCO 7)  What is an incremental cost?  What is an example of one? (Points : 15)

ACCT346 What is Incremental Cost

An incremental cost is the additional that is incurred…

(TCO 8) What is activity-based pricing?  How is the price determined? (Points : 15)

ACCT346 What is Activity Based Pricing

It is a pricing method that uses the knowledge…

(TCO 7) Products Kappa and Sigma are joint products. The joint production cost of the products is $800. Kappa has a market value of $450 at the split-off point. If Kappa is further processed at an additional cost of $600, its market value is $1,400. Product Sigma has a market value of $1,150 at the split-off point. If Product Sigma is further processed at an additional cost of $300, its market value is $1,400. Using the relative sales value method, calculate the joint product cost that would be allocated to Kappa and Sigma.  How do you know if one of the products should be further processed?
(Points : 30)

The relative sales value method is otherwise called as the sales value at split off method.

Step 1: To find the allocation percentages based on the sales value at the split-off point

Step 2: To allocate the joint

ACCT346 Products Kappa and Sigma

The relative sales value method is otherwise called as the…

(TCO 6) Name the steps in the ABC approach.  Describe each of them.  Which do you think is the most important step? Why? (Points : 30)

ACCT346 Name Steps in ABC Approach

ABC approach is the short-form for…

(TCO 8) A company must incur annual fixed costs of $4,000,000 and variable costs of $400 per unit and estimates that it can sell 40,000 pumps annually and marks up cost by 30 percent.  Using cost-plus pricing, what is the cost per unit and the price? What are advantages and disadvantages of cost-plus pricing?(Points : 30)

ACCT346 Company Incur Annual Fixed Costs

Assumption: Cost-plus pricing is based on full-cost…

(TCO 9) A project will require an initial investment of $250,000 and will return $50,000 each year for seven years. If taxes are ignored and the required rate of return is 9%, what is the project’s net present value? Based on this analysis, should the company proceed with the project? (Points : 30)

Project Will Require Initial

Since the cash flows are uniform throughout the…

(TCO 10) Why does a company perform ratio analysis?  What are the debt-related ratios?  Describe the formula for one debt-related ratio and explain how to interpret the ratio. (Points : 30)

ACCT346 Company Perform Ration Analysis

A company performs ratio analysis in order to measure and…

(TCO 1) Who are the users of managerial accounting information?  How does their use of accounting information differ from the users of financial accounting information? (Points : 15)

Users of Managerial Accounting Information

Managerial accounting is directed at…

(TCO 3)  What is job-order costing?  What type of company would us job-order costing? (Points : 15)

What is Job Order Costing

Job-order costing is where individual…

(TCO 4)  What is a variable cost?  What is an example of a variable cost? (Points : 15)

ACCT346 What is Variable Cost

Variable costs are costs that…

(TCO 6)  Explain why companies might choose to allocate the costs of their service departments (ie. Human Resources, Maintenance, Mailroom, etc…) to their production departments.  Also describe some typical bases companies use to base their allocations on.  Last, what should a company be mindful of when analyzing the profitability of segments that have allocated costs.  (Points : 15)

Companies Might Choose to Allocate

Some companies like to allocate their service…

(TCO 8)  What is cost plus pricing?  How does the company determine the profit level? (Points : 15)

ACCT346 What is Cost Plus Pricing

Cost plus pricing is an approach to pricing…

(TCO 8)  Gina’s Boutique makes custom jewelry. One item, the guru necklace, is a best seller and sales in units for the first quarter are as follows: 

January 100,000 units

February 150,000 units
March 180,000 units

Desired ending inventory is budgeted at 20% of next month sales.  Compute production for.. (Points : 30)

Ginas Boutique Makes Custom Jewelry

(TCO 8) Acme Fireworks uses a traditional overhead allocation based on direct labor hours. For the current year overhead is estimated at $1,000,000 and direct labor hours are budgeted at 200,000 hours. Actual hours worked were 195,000 and actual overhead was $978,000. 

(a) Compute the predetermined manufacturing overhead rate.
(b) Compute the applied manufacturing overhead.
(c) Compute the amount of…(Points : 30)

ACCT346 Acme Fireworks Uses Traditional

$1,000,000/200,000 = $5 per…

ACCT 346 Managerial Accounting

(TCO 8)  Joanie Corp sells it products on a credit basis only.  Credit sales are collected 40% in the month of sale and 60% the following month. Sales for the first quarter are as follows:
January $100,000
February $150,000
March $125,000
Compute…. (Points : 30)

ACCT346 Joanie Corp Sells it Products

(TCO 9) A project will require an initial investment of $300,000 and will return $75,000 each year for eight years. If taxes are ignored and the required rate of return is 9%, what is the project’s net present value? Based on this analysis, should the company proceed with the project?   (Points : 30)

Project Requires Initial Investment

(TCO 9) The following data (in thousands of dollars) have been taken from the accounting records of Karmana Corporation for the just-completed year.
Sales ………………………………………………………$950
Raw materials inventory, beginning …………………$10
Raw materials inventory, ending …………………….$30
Purchases of raw materials ………………………….$120
Direct labor ………………………………………………$180
Manufacturing overhead ……………………………..$230
Administrative expenses ……………………………..$100
Selling expenses ………………………………………..$….
Work-in-process inventory, beginning ………………$…
Work-in-process inventory, ending ………………….$…
Finished goods inventory, beginning ………………$…
Finished goods inventory, ending ……………………$…
Use these data to prepare (in thousands of dollars) a schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold for the year. (Points : 30)

ACCT 346 Final Exam

DeVry