Operations Mgmt

Question 1

Product Costs (Manufacturing Costs)

Answer 1

DM
DL
Manufacturing OH (IM, IL, other indirect)

Question 2

Period Costs (Nonmanufactoring Costs)

Answer 2

Selling, general & admin
Interest (Financing) expense
Abnormal Spoilage
Marketing
Freight Out
re-handling costs

Question 3

Manufacturing Product Costs

Answer 3

IM
IL
Other Indirect Costs

Question 4

Prime Costs

Answer 4

DM + DL

Question 5

Conversion Costs

Answer 5

DL+ OH applied

Question 6

Raw Material Calc

Answer 6

RM Begin
\+ Purchases
= M. Available
- ending RM
= DM used

Question 7

Actual Cost System

Answer 7

DM/DL/Mfg OH based on actuals

Question 8

Standard cost system

Answer 8

All costs based on standards

Question 9

Normal Cost System

Answer 9

DM and DL based on Actuals

Mfg O/H based on Standards

Question 10

Predetermined O/H Rate calc

Answer 10

Estimated O/H Costs / Estimated DL $ or Hrs

Question 11

Applied O/H Calc

Answer 11

Predetermined O/H rate x Actual Production

Question 12

WIP or Cost of goods Mfg

Answer 12

Begin WIP
\+ DM Used
\+ DL 
\+ Applied O/H
= WIP available
- Ending WIP
= Cost of goods mfg

Question 13

Finished Goods

Answer 13

Begin FG
\+ Cost of goods mfg
= FG available
- ending FG
= Cost of goods sold

Question 14

COGS

Answer 14

COGS
+ underapplied O/H
- overapplied O/H
= COGS

Question 15

Profit =

Answer 15

Sales - variable - fixed

Question 16

Absorption Approach

Answer 16

Revenue
- variable COGS
- fixed COGS
= gross margin 
- variable SG and A
- fixed SG and A
= net income

Question 17

Contrition Approach (variable/direct)

Answer 17

Revenue
- variable COGS
- variable SG and A
= contribution margin 
- fixed mfg cost
- fixed SG and A
= net income

Question 18

Variable Costs

Answer 18

DM + DL + variable OH + variable SG and A

Question 19

Unit contribution margin

Answer 19

Sales - variable costs / units

Question 20

Contribution margin ratio

Answer 20

Contribution margin / revenue (sales)

Question 21

Difference between absorption and contribution approach

Answer 21

The treatment of fixed factory OH

Absorption = product cost

Contribution = period cost

Question 22

Fixed costs per unit

Answer 22

Fixed mfg OH / units produced

Question 23

If production is greater than sales

Answer 23

Profit greater under absorption

Question 24

Sales greater than production

Answer 24

Profit greater under contribution (variable)

Question 25

Units produced exceeds units sold

Answer 25

Add to inventory

Question 26

Units sold exceeds units produced

Answer 26

Ending inventory

Question 27

Contribution Margin

Answer 27

Sales - variable costs

Question 28

Break even in units

Answer 28

Total fixed costs / cm per unit

Question 29

Break even in sales

Answer 29

Fixed costs / cm ratio

Question 30

Dollars over non dollars =

Answer 30

Dollars

Question 31

Dollars over dollars =

Answer 31

Non dollars

Question 32

In break even formulas add profit or take away loss in the

Answer 32

Numerator of the formula

Question 33

Margin of safety

Answer 33

Total sales - break even sales = margin of safety

Question 34

Ending inventory

Answer 34

Production costs + beginning inventory - COGS