1 / 59

1 POINT

BUDGETING. VARIANCES. DECENTRALIZED OPERATIONS. DIFFERENTIAL ANALYSIS. COST ALLOCATION & ABC. 1 POINT. 1 POINT. 1 POINT. 1 POINT. 1 POINT. 2 POINTS. 2 POINTS. 2 POINTS. 2 POINTS. 2 POINTS. 3 POINTS. 3 POINTS. 3 POINTS. 3 POINTS. 3 POINTS. 4 POINTS. 4 POINTS. 4 POINTS.

Download Presentation

1 POINT

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. BUDGETING VARIANCES DECENTRALIZEDOPERATIONS DIFFERENTIALANALYSIS COSTALLOCATION & ABC 1 POINT 1 POINT 1 POINT 1 POINT 1 POINT 2 POINTS 2POINTS 2POINTS 2 POINTS 2 POINTS 3 POINTS 3 POINTS 3 POINTS 3 POINTS 3 POINTS 4 POINTS 4 POINTS 4 POINTS 4 POINTS 4 POINTS 5 POINTS 5 POINTS 5 POINTS 5 POINTS 5 POINTS

  2. 1 POINT THIS TYPE OF BUDGETING MAINTAINS A 12 MONTH PROJECTION INTO THE FUTURE

  3. WHAT IS CONTINUOUS BUDGETING?

  4. 2 POINTS ONCE A BUDGET HAS BEEN CREATED, THE TASK OF CO-ORDINATING OPERATIONS TO ACHIEVE THE BUDGET’S GOALS FALLS WITHIN THIS STEP OF THE MANAGEMENT CYCLE – LIGHTS, CAMERA, ACTION!

  5. WHAT IS DIRECTING?

  6. 3 POINTS THIS BUDGETARY APPROACH REQUIRES MANAGERS TO ESTIMATE SALES, PRODUCTION, AND OTHER OPERATING DATA AS THOUGH OPERATIONS WERE BEING STARTED FOR THE FIRST TIME

  7. WHAT IS ZERO-BASED BUDGETING?

  8. 4 POINTS • OF THE FOLLOWING, WHICH IS NOT A TYPE OF BUDGET DISCUSSED IN THE CHAPTER? • COST OF GOODS SOLD BUDGET • PRODUCTION BUDGET • VARIANCE BUDGET • DIRECT MATERIALS BUDGET • DIRECT LABOR BUDGET • FACTORY OVERHEAD BUDGET

  9. WHAT IS A VARIANCE BUDGET?

  10. 5 POINTS GIVEN THE FOLLOWING, THE AMOUNT OF CASH EXPECTED TO BE COLLECTED IN FEBRUARY: ACME PRODUCTS HAS THE FOLLOWING BUDGETED SALES FOR THE FIRST QUARTER, 2009: JANUARYFEBRUARYMARCH $1,000,000 $1,200,000 $900,000 10% OF EACH MONTH’S SALES ARE FOR CASH. OF THE REMAINING SALES, 60% ARE COLLECTED IN THE MONTH OF SALE, AND THE REMAINDER IN THE MONTH AFTER.

  11. WHAT IS $1,128,000? FEBRUARY CASH SALES $1,200,000 * 10% $120,000 FEBRUARY CREDIT SALES COLLECTIONS$1,200,000 * 90% * 60% $648,000 JANUARY CREDIT SALES COLLECTIONS$1,000,000 * 90% * 40% $360,000 $1,128,000

  12. 1 POINT THE VARIANCE COMPUTED BY THE FORMULA: (ACTUAL PRICE – STANDARD PRICE) * ACTUAL QUANTITY

  13. WHAT IS THE DIRECT MATERIALS PRICE VARIANCE?

  14. DAILY DOUBLE!

  15. 2 POINTS THE TERM USED FOR ACCOUNTING SYSTEMS THAT USE PERFORMANCE GOALS FOR DIRECT MATERIALS, DIRECT LABOR, AND FACTORY OVERHEAD

  16. WHAT ARE STANDARD COST SYSTEMS?

  17. 3 POINTS THE TERM USED FOR STANDARDS THAT ARE ACHIEVED UNDER PERFECT OPERATING CONDITIONS – FOR EXAMPLE, NO MATERIALS SPOILAGE, NO IDLE TIME, NO BREAKDOWNS

  18. WHAT ARE IDEAL STANDARDS?

  19. 4 POINTS THE TERM USED WHEN A COMPANY MEASURES RESULTS SUCH AS CUSTOMER SATISFACTION

  20. WHAT IS NON-FINANCIAL PERFORMANCE MEASURE?

  21. 5 POINTS GIVEN THE FOLLOWING, THE AMOUNT (AND DIRECTION) OF THE FACTORY OVERHEAD VOLUME VARIANCE, GIVEN THAT FACTORY OVERHEAD IS APPLIED BASED ON DIRECT LABOR HOURS: ACTUAL COSTS:VARIABLE FACTORY OVERHEAD $10,400FIXED FACTORY OVERHEAD $12,000 STANDARD FIXED OVERHEAD RATE $2.40/dlhSTANDARD VARIABLE OVERHEAD RATE $3.60/dlh 100% OF NORMAL CAPACITY 5,000 dlhSTANDARD HRS @ ACTUAL PRODUCTION 4,000 dlh

  22. WHAT IS $2,400 U? 100% OF NORMAL CAPACITY 5,000 dlhSTANDARD HRS @ ACTUAL PROD 4,000 dlhCAPACITY NOT USED 1,000 dlhSTANDARD FIXED OVERHEAD RATE * 2.40 / dlhVOLUME VARIANCE $2,400 U

  23. 1 POINT IN THIS TYPE OF RESPONSIBILITY CENTER, THE MANAGER ONLY HAS THE RESPONSIBILITY AND AUTHORITY FOR CONTROLLING THE COSTS INCURRED

  24. WHAT IS A COST CENTER?

  25. 2 POINTS IN A PROFIT CENTER, THE RESPONSIBLE MANAGER’S PERFORMANCE REPORT INCLUDES NOT ONLY REVENUES AND OPERATING EXPENSES, BUT CHARGES FROM THESE INTERNAL ORGANIZATIONS

  26. WHAT ARE SERVICE DEPARTMENTS?

  27. 3 POINTS IN AN INVESTMENT CENTER, THE RESPONSIBLE MANAGER IS RESPONSIBLE FOR PROFITS, COSTS, AND THESE BALANCE SHEET ITEMS

  28. WHAT ARE ASSETS?

  29. 4 POINTS THE ANALYSIS FOR RETURN ON INVESTMENT CAN BE EXPANDED VIA A FORMULA, NAMED FOR THIS COMPANY THAT DEVELOPED NYLON IN 1935

  30. WHAT IS DuPONT?

  31. 5 POINTS THE NAMES OF THE TWO RATIOS IN THE EXPANDED ROI FORMULA

  32. WHAT ARE PROFIT MARGIN AND INVESTMENT TURNOVER?

  33. 1 POINT THIS TYPE OF COST IS NOT RELEVANT IN DIFFERENTIAL ANALYSIS, AND SOUNDS LIKE IT BELONGS IN A GAME OF “BATTLESHIP”

  34. WHAT IS A SUNK COST?

  35. 2 POINTS WHEN SETTING NORMAL PRODUCT SELLING PRICES, COMPANIES CAN CHOOSE BETWEEN COST-PLUS METHODS AND THESE?

  36. WHAT ARE MARKET METHODS?

  37. 3 POINTS IN THIS COST-PLUS METHOD, ONLY THE COSTS OF MANUFACTURING ARE INCLUDED IN THE COST AMOUNT TO WHICH THE MARKUP IS APPLIED

  38. WHAT IS THE PRODUCT COST CONCEPT?

  39. DAILY DOUBLE!

  40. 4 POINTS THE TERM USED FOR THE AMOUNT OF INCOME FOREGONE FROM AN ALTERNATIVE USE OF AN ASSET

  41. WHAT IS OPPORTUNITY COST?

  42. 5 POINTS THE PRODUCT WHICH WILL MAXIMIZE INCOME UNDER THE FOLLOWING SCENARIO: STUDGEYSER BREWING MAKES THREE FERMENTED BEVERAGES: RED RIBBON, STALE ALE, AND COLT .47 THE FERMENTING PROCESS HAS LIMITED CAPACITY AND QUALIFIES AS A BOTTLENECK. RED RIBBONSTALE ALECOLT .47 SALES PRICE $20 $15 $30VARIABLE COST $10 $ 8 $15HOURS IN THEFERMENTER 5 7 10

  43. WHAT IS RED RIBBON? RED RIBBONSTALE ALECOLT .47 SALES PRICE $20 $15 $30VARIABLE COST $10$ 8$15CONT. MARGIN $10 $ 7 $15HOURS IN THEFERMENTER ÷ 5÷7÷10 CM PER BOTTLE-NECK HOUR $2 $1 $1.50

  44. 1 POINT THE THREE FACTORY OVERHEAD ALLOCATION METHODS ARE ACTIVITY-BASED COSTING, A SINGLE PLANTWIDE RATE, AND THIS

  45. WHAT IS MULTIPLE PRODUCTION DEPARTMENT RATE?

  46. 2 POINTS TERM USED FOR THE TYPE OF COSTING SYSTEM USED TO DETERMINE THE PROFITABILITY OF A MANUFACTURED ITEM

  47. WHAT IS PRODUCT COSTING?

  48. 3 POINTS USING A MULTIPLE PRODUCTION DEPARTMENT OR ACTIVITY-BASED COSTING RATE HELPS PREVENT THIS FROM OCCURRING

More Related