Accounting 285 Final Exam
Variable cost per unit
change in cost / change in activity
Selling price
1 + markup percentage x cost
Variable overhead rate variance
AH x SR-AR
Materials price variance
AQ x SP-AP
Materials quantity variance
SP x SQ-AQ
Variable overhead effdecenty variance
SR x SH-AH
Target cost
anticipated selling price - desired profit
Managerial accounting focuses on preparing information for which group?
managers
Manufacturing costs
direct materials, direct labor, manufacturing overhead
Predetermined overhead rate
estimated total manufacturing overhead cost / estimated total amount of the allocation base
Which of the following types of costs are applies to production when using a job oder costing system?
factory overhead
Residual income
net income - assets x minimum required rate of return
Return on investment
net income / average operating assets (margin x turnover)
Margin
net income / sales
Payback period
investment required / annual net cash flow
What are the three primary functions of management?
planning, strategy, and policy
Throughput time
process time + inspection time + move time + queue time
Manufacturing cycle efficiency
process time / throughput time
What is the purpose of managerial accounting
provide information to managers for use within the organization
Contribution Margin
sales - variable expenses
Profit
sales - variable expenses - fixed expenses (Unit CM x Q - fixed expenses)
Turnover
sales / assets
Nonmanufacturing costs
selling costs, administrative costs
CM ratio
total contribution margin / total sales
Fixed costs
total cost - variable cost per unit * activity
Dollar sales for a company to break even
traceable fixed expenses + common fixed expenses / overall CM ratio
Delivery cycle time
wait time + throughput time
