5 Written questions
5 Matching questions
- Predetermined Overhead Rate
- Profit equation
- Operating profit
- total cost variance
- a equals Estimated Overhead / Estimated Allocation Base
- b difference between budgeted and actual results (equal to the sum of the price and efficiency variances)
- c operating profit equals total revenue less total costs
- d excess of operating revenues over the operating costs necessary to generate those revenues.
- e a sacrifice of resources. The price of each item measures the sacrifice we must make to acquire it.
5 Multiple choice questions
- system to provide information about the costs of process, products, and services used and produced by an organization.
- y term, or the left handed side of a regression equation
- equals the target price minus the desired profit margin
- all fixed and variable costs are product costs, all others are period costs
- practice of setting prices highest when the quantity demanded for the product approaches capacity
5 True/False questions
Profit Variance Analysis as a Key Tool For → analysis of the causes of differences between budgeted profits and the actual profits earned.
Predetermined Overhead Rate → excess of actual overhead costs incurred over applied overhead costs
Five Steps to determining equivalent units → 1) measure the physical flow of resources, 2) compute the equivalent unit of production, 3) identify the product costs for which to account, 4) compute the costs per equivalent unit: weighted average, 5) assign product cost to batches of work (Weighted Average Process Costing
Profit volume analysis → analysis of the causes of differences between budgeted profits and the actual profits earned.
Manufacturing overhead → excess of applied overhead costs incurred over actual overhead during a period.