1 POINT 2 POINTS 3 POINTS 4 POINTS 5 POINTS BUDGETING 1 POINT 4 POINTS 3 POINTS 2 POINTS2 POINTS 3...

download 1 POINT 2 POINTS 3 POINTS 4 POINTS 5 POINTS BUDGETING 1 POINT 4 POINTS 3 POINTS 2 POINTS2 POINTS 3 POINTS 2 POINTS 5 POINTS 2 POINTS 3 POINTS 4 POINTS.

If you can't read please download the document

  • date post

    03-Jan-2016
  • Category

    Documents

  • view

    225
  • download

    5

Embed Size (px)

Transcript of 1 POINT 2 POINTS 3 POINTS 4 POINTS 5 POINTS BUDGETING 1 POINT 4 POINTS 3 POINTS 2 POINTS2 POINTS 3...

  • 1 POINT2 POINTS3 POINTS4 POINTS5 POINTSBUDGETING1 POINT1 POINT1 POINT1 POINT4 POINTS3 POINTS2 POINTS2 POINTS3 POINTS2 POINTS5 POINTS2 POINTS3 POINTS4 POINTS5 POINTS4 POINTS3 POINTS4 POINTS5 POINTS5 POINTSCOST ALLOCATION & ABCDIFFERENTIAL ANALYSISDECENTRALIZED OPERATIONSVARIANCES

  • THIS TYPE OF BUDGETING MAINTAINS A 12 MONTH PROJECTION INTO THE FUTURE1 POINT

  • WHAT IS CONTINUOUS BUDGETING?

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

  • WHAT IS DIRECTING?

  • THIS BUDGETARY APPROACH REQUIRES MANAGERS TO ESTIMATE SALES, PRODUCTION, AND OTHER OPERATING DATA AS THOUGH OPERATIONS WERE BEING STARTED FOR THE FIRST TIME3 POINTS

  • WHAT IS ZERO-BASED BUDGETING?

  • 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 4 POINTS

  • WHAT IS A VARIANCE BUDGET?

  • 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$900,00010% OF EACH MONTHS SALES ARE FOR CASH. OF THE REMAINING SALES, 60% ARE COLLECTED IN THE MONTH OF SALE, AND THE REMAINDER IN THE MONTH AFTER.5 POINTS

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

  • THE VARIANCE COMPUTED BY THE FORMULA:(ACTUAL PRICE STANDARD PRICE) * ACTUAL QUANTITY

    1 POINT

  • WHAT IS THE DIRECT MATERIALS PRICE VARIANCE?

  • DAILY DOUBLE!

  • THE TERM USED FOR ACCOUNTING SYSTEMS THAT USE PERFORMANCE GOALS FOR DIRECT MATERIALS, DIRECT LABOR, AND FACTORY OVERHEAD

    2 POINTS

  • WHAT ARE STANDARD COST SYSTEMS?

  • THE TERM USED FOR STANDARDS THAT ARE ACHIEVED UNDER PERFECT OPERATING CONDITIONS FOR EXAMPLE, NO MATERIALS SPOILAGE, NO IDLE TIME, NO BREAKDOWNS3 POINTS

  • WHAT ARE IDEAL STANDARDS?

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

  • WHAT IS NON-FINANCIAL PERFORMANCE MEASURE?

  • 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$10,400 FIXED FACTORY OVERHEAD$12,000STANDARD FIXED OVERHEAD RATE$2.40/dlh STANDARD VARIABLE OVERHEAD RATE$3.60/dlh100% OF NORMAL CAPACITY5,000 dlh STANDARD HRS @ ACTUAL PRODUCTION4,000 dlh5 POINTS

  • WHAT IS $2,400 U?100% OF NORMAL CAPACITY5,000 dlh STANDARD HRS @ ACTUAL PROD4,000 dlh CAPACITY NOT USED1,000 dlh STANDARD FIXED OVERHEAD RATE* 2.40 / dlh VOLUME VARIANCE$2,400 U

  • IN THIS TYPE OF RESPONSIBILITY CENTER, THE MANAGER ONLY HAS THE RESPONSIBILITY AND AUTHORITY FOR CONTROLLING THE COSTS INCURRED1 POINT

  • WHAT IS A COST CENTER?

  • IN A PROFIT CENTER, THE RESPONSIBLE MANAGERS PERFORMANCE REPORT INCLUDES NOT ONLY REVENUES AND OPERATING EXPENSES, BUT CHARGES FROM THESE INTERNAL ORGANIZATIONS2 POINTS

  • WHAT ARE SERVICE DEPARTMENTS?

  • IN AN INVESTMENT CENTER, THE RESPONSIBLE MANAGER IS RESPONSIBLE FOR PROFITS, COSTS, AND THESE BALANCE SHEET ITEMS3 POINTS

  • WHAT ARE ASSETS?

  • THE ANALYSIS FOR RETURN ON INVESTMENT CAN BE EXPANDED VIA A FORMULA, NAMED FOR THIS COMPANY THAT DEVELOPED NYLON IN 19354 POINTS

  • WHAT IS DuPONT?

  • THE NAMES OF THE TWO RATIOS IN THE EXPANDED ROI FORMULA5 POINTS

  • WHAT ARE PROFIT MARGIN AND INVESTMENT TURNOVER?

  • THIS TYPE OF COST IS NOT RELEVANT IN DIFFERENTIAL ANALYSIS, AND SOUNDS LIKE IT BELONGS IN A GAME OF BATTLESHIP1 POINT

  • WHAT IS A SUNK COST?

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

  • WHAT ARE MARKET METHODS?

  • IN THIS COST-PLUS METHOD, ONLY THE COSTS OF MANUFACTURING ARE INCLUDED IN THE COST AMOUNT TO WHICH THE MARKUP IS APPLIED3 POINTS

  • WHAT IS THE PRODUCT COST CONCEPT?

  • DAILY DOUBLE!

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

  • WHAT IS OPPORTUNITY COST?

  • THE PRODUCT WHICH WILL MAXIMIZE INCOME UNDER THE FOLLOWING SCENARIO:STUDGEYSER BREWING MAKES THREE FERMENTED BEVERAGES: RED RIBBON, STALE ALE, AND COLT .47THE FERMENTING PROCESS HAS LIMITED CAPACITY AND QUALIFIES AS A BOTTLENECK. RED RIBBONSTALE ALE COLT .47SALES PRICE$20 $15$30 VARIABLE COST$10 $ 8$15 HOURS IN THE FERMENTER 5 7 105 POINTS

  • WHAT IS RED RIBBON? RED RIBBONSTALE ALE COLT .47SALES PRICE$20 $15$30 VARIABLE COST$10 $ 8$15 CONT. MARGIN $10 $ 7 $15 HOURS IN THE FERMENTER 5 7 10 CM PER BOTTLE- NECK HOUR$2 $1$1.50

  • THE THREE FACTORY OVERHEAD ALLOCATION METHODS ARE ACTIVITY-BASED COSTING, A SINGLE PLANTWIDE RATE, AND THIS1 POINT

  • WHAT IS MULTIPLE PRODUCTION DEPARTMENT RATE?

  • TERM USED FOR THE TYPE OF COSTING SYSTEM USED TO DETERMINE THE PROFITABILITY OF A MANUFACTURED ITEM2 POINTS

  • WHAT IS PRODUCT COSTING?

  • USING A MULTIPLE PRODUCTION DEPARTMENT OR ACTIVITY-BASED COSTING RATE HELPS PREVENT THIS FROM OCCURRING3 POINTS

  • WHAT IS DISTORTING THE PRODUCT COST (AND ULTIMATELY THE SELLING PRICE)?

  • WHEN USING ACTIVITY-BASED COSTING, FACTORY OVERHEAD COSTS ARE GROUPED TOGETHER IN THESE4 POINTS

  • WHAT ARE ACTIVITY POOLS?

  • THE SINGLE PLANT-WIDE FACTORY OVERHEAD RATE FOR THE FOLLWING SCENARIO:ACTIVE ADULTS, INC. MAKES THREE PRODUCTS: ADULT DIAPERS, ADULT NUTRITION DRINK, AND WALKERS. BUDGETED FACTORY OVERHEAD IS $156,800, AND OVERHEAD IS APPLIED BASED ON DIRECT LABOR HOURS. FOLLOWING ARE THE BUDGETED PRODUCTION VOLUMES AND DLH PER UNIT:VOLUMEDLH/UNIT DIAPERS2,800 UNITS0.6 DRINK 7001.8 WALKERS1,4001.45 POINTS

  • WHAT IS $32/DLH?DIAPERS2,800 * 0.6 = 1,680 DRINK 700 * 1.8 = 1,260 WALKERS1,400 * 1.4 = 1,960 TOTAL DLH 4,900FACTORY OVERHEAD RATE:$156,800 4,900 DLH = $32/DLH

  • CATEGORY:DIFFERENTIAL ANALYSIS AND ACTIVITY-BASED COSTINGMAKE YOUR WAGER!

  • ANSWER:THE COSTING METHOD THAT COMBINES MARKET-BASED PRICING WITH A COST-REDUCTION EMPHASIS

  • QUESTIONWHAT IS TARGET COSTING?