accounting 252
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hi all ,,
i have a task that you could work only for 5 hours..
There are 25 multiple-choice questions:
Know how to calculate unit product cost using ABC costing given the direct material and direct labor per
unit cost and the overhead data for three pools and the amount of the each pool used by the product
Know how to compute the overhead cost per unit using the traditional costing method
Know how to compute the predetermined overhead rate using ABC costing
Know how to compute the selling price of a product given a switch to ABC from the traditional method
Know the definition of Unit-level activity, Batch-level activity, Product-level activity, and Facility-level
activity and apply the definition of a given example
Know the meaning of peanut buttering and know the effect on the product cost of high volume and low
volume products when a firm changes from traditional to ABC costing
Know how to calculate the unit product cost under absorption costing and variable costing
Know how to calculate a company’s net operating income when there are two divisions and traceable
fixed expenses in both divisions and common fixed expenses
Know how to determine the difference between absorption income and variable income when given the
amount of deferred fixed manufacturing costs were retained or released (Hint: Read the question
very carefully as to which year the question is asking about)
Know what causes net operating income to be higher during a given period under absorption costing
than variable costing
Know how to determine if a promotional campaign is cost effective given the cost of the campaign and
the expected increase in division sales. The question will provide the division sales, variable expenses,
contribution margin, traceable fixed expenses, segment margin, common expenses and current net
operating income. Another question will ask in an advertising campaign is effective by cutting the
selling price to increase sales given the cost of the increased advertising
Know how to calculate the number of units that need to be sold to achieve the same profit as was
earned last year given a change in the firm’s fixed expenses
Know how to calculate the break-even point in sales dollars and in units
Know how to calculate the margin of safety in dollars
Know how to calculate and apply operating leverage to determine the percentage increase in profit
percentage wise given the percentage increase in sales
Know how to calculate the break-even point in sales dollars for a multiple product company
Know how to calculate a unit contribution margin given the units produced and sold, the sales revenue,
the fixed and variable manufacturing expense, and the fixed and variable selling and administrative
expense and the net operating income
Know how to calculate a new net operating profit given the current data for xxx number of units and the
firm intends to sell yyy number of units in the coming year
Know how determine the increase in profit given the current sales and expense data
Know how to determine the number of units to be sold to attain a target profit given the prior years
data
Know how to calculate the annual net operating profit given the direct labor, direct material, variable
factory overhead and marketing expenses, and the annual fixed expenses
There are 3 problems:
The first problem from chapter 3 will require you to calculate the unit product cost for two products
using ABC
The second and third problems from chapter 5 will require you to complete a contribution format
income statement and to answer 6 questions on unit cm, cm ratio, BE $, Margin of Safety %, increase
in operating income with increased sales and new BE point with increased variable and fixed costs
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