Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

ACCT 2121 > Final Exam > Flashcards

Final Exam Flashcards

1
Q

Contribution Margin

A

Revenue - Variable Costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Contribution Margin Ratio

A

Revenue- Variable Costs/ Revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Variable Costs

A

-Rise as you make more
-Cost that changes in total as activity level flunctuates but remains constant on a per unit basis
-Raw materials
-Hourly wages
-Shipping charges
-Advertising
-No operating leverage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Fixed Costs

A

-Stays the same
-Cost that remains constant in total as the activity level flunctuates but changes on a per unit basis
-Must be paid no matter how much you sale
-Rent
-Insurance
-Weekly pay
-Equipment
-Operating leverage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Break Even Point

A

Fixed Cost/ Contribution Margin per Unit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Desired Profit

A

Fixed Cost+Profit/Contribution Margin Per Unit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Break Even Point Definition

A

Break even point allows managers to determine the sales volume required to earn a desired profit (loss zero profit)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Target Net Income (Managerial)

A

Rev - Variable cost = CM - fixed cost = NI

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Target Net Income (Financial)

A

Rev - COGS = GM - SG&A Expense = NI

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

SG&A Expense (period cost)

A

Selling, general, administrative
-non production expenses incurred
-rent
-utilities
-legal fees
-insurance
-advertising
-marketing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

COGS

A

Product cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Margin of Safety

A

Budgeted Sales - Break Even Sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Margin of safety ratio

A

budgeted sales - break even sales / budgeted sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Margin of Safety Definition

A

Measures the cushion between budgeted sales and the break even point. Quantifies the amount by which actual sales can fall short of expectations before the company will begin to incur losses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Cost of goods sold (Merchandiser)

A

Beg Inv + Cost of goods purchased - Ending Inv

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Cost of goods sold (Manufacturer)

A

Beg finished goods inv + Cost of goods manufactured - ending finished goods inv

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Cost of Goods Manufactured

A

Beg WIP Inv + Total manufacturing costs - Ending WIP inv

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Total cost of WIP

A

Beg WIP inv + Total manufacturing costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Total Manufacturing Costs

A

DM + DL + MOH

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Manufacturers Inventory

A

Raw materials + WIP + Finished Goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Managerial Accounting Basis

A

Provides economic and financial info for managers and other internal users

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Managerial & Financial Similarities

A

-Deal with economic events of a business aka business transactions
-Economic events quantified and communicated to interested parties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Financial

A

-External : stockholders, creditors and regulators
-Financial reporting: quarterly & annually
-General purpose
-Pertains to business as a whole, highly aggregated (condensed), limited to accrual acct and cost data, GAAP, audited by CPA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Managerial

A

-Internal : officers & managers
-Internal reports: as frequently as needed
-Special purpose for specific decisions
-Pertains to subunits of a business, very detailed, extends beyond accrual acct to any relevant data
-Evaluated based on relevance to decisions
-No independent audits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Just in Time (JIT) inventory

A

-system in which goods are manufactured or purchased just in time for sale
-companies receive the exact amount of inventory they need, right when they need it
-goal is for companies to retain little to no excess inventory at any given time.

26
Q

Time Quality Management (TQM)

A

Reduce defects in finished products with goal of zero defects

27
Q

Theory of Constraints (“bottlenecks”)

A

-Constraints limit companies potential profitability
-Allows management to identify & eliminate constraints in order to achieve company goals

28
Q

Enterprise Resource Planning (ERP)

A

Software programs designed to manage all major business processes

29
Q

Activity Based Costing (ABC)

A

-Allocates overhead based on use of activities
-Results in more accurate product costing & scrutiny of all activities in value chain

30
Q

Balance Scoreboard

A

-Evaluates operations in an integrated fashion
-Uses both financial & non financial measures, often expressed as “key performance indicators” KPI’s
-Links performance to overall company objectives

31
Q

Depreciable basis

A

HC - SV

32
Q

Annual Depreciation Expense

A

Depreciable basis/ useful life

33
Q

Product Costs

A

-costs that are an integral part of producing a product
-recorded in inventory account
-not an expense (COGS) until goods are sold
-components: DM, DL, MOH

34
Q

Period Costs

A

-charged to expense as incurred
-non manufacturing costs
-includes all selling, general, & administrative expenses (SG&A)
-unrelated to making products

35
Q

MOH

A

-indirect materials
-indirect labor
-other indirect costs

36
Q

Periodic Inventory system

A

-under the periodic inventory system the income statements of a merchandiser & a manufacturer differ in the cost of goods sold section

37
Q

Environmental

A

-renewable fuels
-greenhouse gas emissions
-energy efficiency
-climate risk
-water management
-recycling processes
-emergency prepardness

38
Q

Social

A

-health & safety
-working conditions
-employee benefits
-diversity & inclusion
-human rights
-impact on local communities

39
Q

Goverance

A

-ethical standards
-board diversity & governance
-stakeholder engagement
-shareholder rights
-pay for performance

40
Q

Total variable costs

A

solve for x

41
Q

Total fixed costs

A

stays the same its a fixed cost

42
Q

Variable costs per unit

A

stays the same

43
Q

Fixed costs per unit

A

solve for x

44
Q

Rental cost per unit

A

rent expense/ # of units produced

45
Q

Utilities cost per unit

A

utilities expense/ # of units produced

46
Q

4 primary financial statements and order prepared

A

-Income statement
-Statement of RE; shareholders equity
-Balance sheet
-Statement of cashflows

47
Q

Net income

A

revenue - expenses

48
Q

Statement of RE

A

beg re + NI - dividends

49
Q

Operating

A

-income statement items
-revenues
-expenses
-current asset; cash
-current liability

50
Q

Investing

A

-long term asset
-investments; land & buildings

51
Q

Financing

A

-long term liability
-shareholders equity; loans \/
-common stock & retained earnings\/
-revenues & expenses
-dividends

52
Q

Accounting Equation

A

Assets + liabilities + stockholders equity

53
Q

On account

A

-accts payable or accts receivable

54
Q

accounts payable

A

-represents money that your business owes to suppliers
-current liability

55
Q

accounts receivable

A

-represents money owed to your business by customers
-current asset

56
Q

Big 4

A

-KPMG
-PricewaterhouseCoopers
-Deloitte
-Ernst & Young

57
Q

Enron scandal

A

-Fraudulent accounting practices (revenue recognition, mark-to-market accounting, special purpose entities)
-Ken Lay; founder and CEO
-Jeff Skilling; CEO during scandal
-collapsed in 2001

58
Q

Sarbanes-Oxley (SOX) Act of 2002

A

-“Corporate responsibility”
-made it harder for corporations to commit unethical behavior, publicly-traded companies have been subject
to the “integrated audit” since 2002.
-Senator; paul sarbanes
-rep; mike oxley

59
Q

Accounting rules (US)

A

-Generally Accepted Accounting
Principles (GAAP)
-Financial Accounting Standards Board (FASB) continually monitors and updates US GAAP
-Securities and Exchange Commission
(SEC) is the entity to which publicly-
traded companies submit their quarterly and annual financial statements on the Forms 10-Q and 10-K, respectively

60
Q

Accounting rules (international)

A

-International Financial Reporting
Standards (IFRS)
-International Accounting Standards
Board (IASB) continually monitors and updates IFRS

61
Q

SOX compliance required for

A

-Publicly-traded companies in the U.S. and their subsidiaries
-Foreign companies that are publicly traded and do business in the U.S.
-Private companies planning their Initial Public Offering (IPO) to become a publicly traded company
-Accounting firms performing audits of the above SOX-regulated companies

62
Q
A

ACCT 2121 (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions