Managerial Accounting in a Dynamic World Final Study Guide

ACCT 5130 Spring 2017 Final Exam

• Saturday March 11, 2017 10am-12 noon in Sage Hall 333
• The exam is comprehensive and consists of 50 multiple choice questions
• Please bring pencils and an ID to the exam.
• You may use a simple four-function calculator on the exam; please bring one with you.
• If you plan to take your exam at a testing center, please read the policy in the syllabus and contact Dr. Jimenez with the testing center contact information and instructions for submitting the exam by Monday February 27, 2017.

Chapter 1

• Managerial accounting and its objectives
• Managerial versus financial accounting
• Balanced scorecard
• Capacity and two ways to define it

Chapter 2

• Product and period costs

• Raw materials
• Work in-process
• Finished-goods

• Manufacturing costs

• Direct material
• Direct labor
• Manufacturing overhead

• Indirect material
• Indirect labor

• Variable and fixed costs
• Costs shown on income statement versus balance sheet for retailing  companies and manufacturing companies
• Manufacturing cost flows including calculation of cost of goods manufactured and cost of goods sold

Chapter 3

• Flow of costs in manufacturing firms (including t-accounts and journal entries)
• Understand how to account for manufacturing overhead costs in a job-order costing system

• Predetermined overhead rate
• Application of overhead
• Over- or under-applied overhead

Chapter 5

• Understand how to apply overhead in an activity-based costing system

• Define: cost pools, cost driver, pool rate
• Understand cost hierarchy
• Be able to compute the pool rate and use it to apply overhead
• Understand the advantages of ABC

Chapter 6

• Define: cost behavior patterns, variable cost, step-variable cost, fixed cost, step-fixed cost, semivariable (mixed) cost, curvilinear cost, relevant range, engineered cost, committed cost, discretionary cost
• Be able to classify costs by type (i.e. classify as variable, step-variable, fixed, step-fixed, semivariable, curvilinear)
• Understand and be able to perform the following cost estimation techniques:

• High-low method

Chapter 7

• Be able to calculate the break-even point

• Contribution margin
• Break-even point in units
• Break-even point in dollars
• Contribution margin ratio

Chapter 9

• Define budgetary slack
• Be able to prepare a master budget

• Sales budget (understand factors that influence the sales forecast and that the sales budget is completed first)
• Operational budgets (production, purchases, Direct Labor, etc.)
• Financing budgets (cash receipts, cash disbursements, cash budget)

Chapter 10

• Know what a standard cost system is and how it is used
• Understand the purpose of variance analysis and how to compute the following variances

• DM Quantity
• DL Efficiency

• Understand the behavioral impacts of standard costing

Chapter 11

• Understand flexible budgeting and be able to prepare a flexible budget. Be able to prepare and understand a flexible budget formula
• Understand overhead application in a standard costing system
• Be able to compute the following variances

• VOH spending variance

Chapter 12

• Understand responsibility centers and the major types of centers. Be able to identify the type of center for various real-world examples
• Be able to compute and interpret segment contribution margin
• Understand the balanced scorecard including lead indicators and lag indicators

Chapter 14

• Be able to identify relevant costs and benefits
• Be able to make special decisions

• Special orders
• Outsourcing (make versus buy)
• Add or drop a service, product, or department
• Replace old equipment

Chapter 16

• Understand capital budgeting decisions
• Be able to compute net present value
• Understand the discount (hurdle) rate
• Understand the payback method