Acct 340-Midterm Review Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Which of the following is NOT a process associated with an accounting information system? |a. |auditing existing data | |b. |collecting and recording data | |c. |providing information
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volume products. Therefore, this allocation method is incorrect. ii. ABC systems uses different cost drivers for different activities so that they are more accurate cause of cost because they indicate the cause and effect relationship between the cost drivers and cost objectives. Therefore, the final product will show the correct resource usage per product. We assumed that ABC systems is more appropriate for costing high volume, low volume because firstly, the activity cost pool do not have
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Cost Volume Profit (CVP) Formulas: Contribution margin = Sales - Variable expenses (manufacturing and non-manufacturing) Net operating income = Contribution margin - Fixed expenses (manufacturing and nonmanufacturing) Contribution margin ratio = Contribution margin / Sales Break even point (units) = Fixed expenses / Unit contribution margin Break even point (dollar sales) = Fixed expenses / CM ratio Units sales to attain target profit = (Fixed expenses + Target profit) / Unit contribution
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primary emphasis of this study is to place sophisticated tools and techniques in the hands of primary users in making business decisions. Specific topics include cost behavior analysis, cost management systems, relevant cost analysis, performance measurement, and value-based management control systems. The course also includes presentations in teams whereby the students apply the course material. Course objectives At the conclusion of this course the student should be able to communicate cost information
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Managing Financial Principles and Techniques - Financial and Investment analysis Contents 1. Be able to apply cost concepts to the decision-making process 2 2. Be able to apply forecasting techniques to obtain information for decision making 4 3. Be able to participate in the budgetary process of an organization 5 4. Be able to recommend cost reduction and management processes for an organization 7 5. Be able to use financial appraisal techniques to make strategic investment decisions
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Activity-Based Costing and Predatory Pricing: The Case of the Petroleum Retail Industry DISCUSSION QUESTIONS: 1. What are product-cost subsidizations? When excessive costs are charged to high-volume products while insufficient costs are charged to low-volume products. One example of how this occurs is when product-costing is based on labor-hours. Products that are produced infrequently will typically require less annual man-hours when compared to major products. Calculating the costs
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Sally under in the ABC systems is, her application of the 150% for both the internal control and information systems departments. The flaw here is that Sally is kind of using both the ABC and the standard cost system at the same time in determining the charge out rate for the two departments. This will inflate the charge out rate for the internal control consulting, with the information system consulting been reduced, considering the activities performed in the information systems consulting which
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Cost management lecture slide summary Lecture 1 Reasons for US growth 1977-‐2007: end of cold war; China; spread of Internet; Financial deregulation and easy. Business inputs: land; material; labour; capital; enterprise; technology. Business decisions bound inputs with outputs Output: goods, service, information and data
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success of the company. With the current cost system (Exhibit A), the company uses three overhead rates that creates a large variation in quotes for parts, did not identify the low-volume and low-value parts, relied on past cost without identifying mistakes and established a “normal value” as a long term “through the business cycle” volume. With the ABC cost system (Exhibit B), we address the limitations of the last system being ineffective for costing and bidding individual parts by allocating
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You have just been hired as a graduate accountant by Greenwood Industries, a company that manufactures electronic products. There are five divisions within Greenwood: Oaktree, which produces large-screen televisions; Gumtree, which produces sound systems, including hi-fi and digital radios; Pinetree, which produces video cameras; Cedartree, which produces kitchen accessories, and Birchtree, which produces electronic medical products. All divisions are standalone, with a manager responsible for each
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