ACCOUNTING 2 REVIEW - Final Exam - Chapters 22 thru 26
1. Know the definition of the budgetary terms: (Static, Continuous, Master and Flexible, Zero Based).
2. Know the definition of the budgetary terms: (Static, Continuous, Master and Flexible, Zero Based).
3. Calculate variable and fixed costs for a flexible budget.
4. Calculate components of a flexible budget.
5. Calculate variable and fixed costs for a flexible budget.
6. Know the difference between static and flexible budgets.
7. Calculate the number of units to be produced (production budget).
8. Calculate the total cash to be collected for a given month.
9. Know definitions of the various standards.
10. Why are there two variances for Direct Materials?
11. What creates a favorable or unfavorable variance?
12. Calculate a direct material price variance.
13. Calculate a direct material quantity variance.
14. Know the difference between a direct material price and quantity variance.
15. Calculate a direct labor time variance.
16. Calculate a direct labor rate variance.
17. What account(s) is the closing of the variances transferred?
18. Distinguish between the terms centralized and decentralized.
19. Select the best example of a decentralized operation.
20. What are the responsibilities of a manager in charge of a cost center?
21. Why a manufacturing operation is considered a cost center?
22. What are the costs of service charges to a profit center called?
23. How are service department charges presented on the income statement?
24. Calculate the gross profit for one of two divisions.
25. Calculate the income from operations for one of two divisions.
26. Calculate the profit margin.
27. Calculate the investment turnover.
28. Calculate the rate of return on investment.
29. Calculate residual income.
30. Choose the cost term being defined (period, differential, sunk, or replacement).
31. Calculate the change in net income that results from discontinuing a product.
32. What would be the differential cost from making the part rather than purchasing it?
33. Select the term that is defined (differential income, differential revenue, sunk cost, or opportunity cost).
34. Calculate differential revenue from accepting an offer.
35. Calculate differential cost from accepting an offer.
36. Calculate the gain/loss from accepting an offer.
37. Calculate the dollar amount of desired profit from the production and sale of the company’s product.
38. Calculate the cost per unit for the production of the company’s product.
39. Calculate the markup percentage on product cost for a company’s product.
40. Calculate the unit selling price for the company’s product.
41. Know which method(s) of analyzing capital investment proposals uses present value?
42. Know an advantage of the average rate of return method.
43. Calculate the cash payback period.
44. Select the term that is defined (present value index, price-level index, net cash flow).
45. Calculate the cash payback period.
46. Calculate the cash payback period.
47. Calculate the average rate of return for an investment.
48. Calculate the internal rate of return for an investment.
49. Calculate the present value of an amount.
50. Calculate the net present value for an investment.