BAR - 1A

Question 1

Backflush Costing

Answer 1

Many variations of this, each use various trigger points such as: point of sale, purchase of materials, completion of manufacturing. All cause accounting entries to reflect what happened.

Question 2

Calculate, Equivalent Units

Answer 2

Multiply, number of units worked on by percentage completion of the units.

Question 3

Calculate, % change between two years

Answer 3

(Current Year Amount - Prior Year Amount) / Prior Year Amount

Question 4

Absorption Costing

Answer 4

Manufacturing FIXED COSTS flow through with the product all the way until sold, and are expensed in the COGS. Fixed costs are product costs.

Question 5

Calculation, COGS

Answer 5

Beginning Inventory
+ COGM
- Ending Inventory
= COGS

Question 6

Calculation, COGM

Answer 6

Direct Materials Cost
Conversion Fixed Cost
Conversion Variable Cost

or

Per Unit:
DM Cost
Conversion Fixed Cost
Conversion Variable Cost

Question 7

Profit Margin

Answer 7

Profit / Revenue
(Revenue - Expenses / Revenue)

Question 8

Gross Margin

Gross Margin Ration

Answer 8

Sales - COGS

Gross Margin / Net Sales Revenue
Sales dollars available to operating costs and contribute to profit

Question 9

Product Costs

Answer 9

These costs are attached or assigned to units in the manufacturing process.

Question 10

Degree of Financial Leverage

Answer 10

Return on Equity / Adjusted Return on Assets

Adjusted Return on Assets is same thing as Net Income