5 Written questions
5 Matching questions
- Five Steps to determining equivalent units
- Target cost
- profit variance analysis
- Cost management system
- Determining Which is Better: FIFO or Weighted Average
- a system to provide information about the costs of process, products, and services used and produced by an organization.
- b equals the target price minus the desired profit margin
- c analysis of the causes of differences between budgeted profits and the actual profits earned.
- d Either methods are acceptable for assigning costs to inventories and cost of goods sold. Weighted average has been criticized for masking current period costs. If computational and record keeping costs are about the same under both FIFO and weighted average, FIFO costing generally offers greater decision making benefits
- e 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
5 Multiple choice questions
- variance that, taken alone, reduces the operating profit.
- activity levels within which a given total fixed cost or unit variable cost will be unchanged
- contribution margin as a percentage of sales revenue
- has less detailed recordkeeping, so it is cheaper than job costing. But still does not provide as much information as job costing does. Job costing records the cost of each unit produced. the choice of process versus job costing system involves a comparison of the costs and benefits of each system as well as the production process being utilized.
- costing method that first assigns costs to activities and then assigns them to products based on the products' consumption of activities.
5 True/False questions
flexible production budget → standard input price times standard quantity of input allowed for actual good output
Relevant range → limits within which a cost estimate may be valid
standard cost sheet → an accounting method that assigns costs to cost objects at predetermined amounts
operating budgets → budget that indicates revenues, costs, and profits for different levels of activity, including the ex post actual activity level
Coefficient of determination → square of the correlation coefficient, interpreted as the proportion of the variation in the dependent variable explained by the independent variables