TRC1

Question 1

Prime costs =

Answer 1

direct materials + direct labor

Question 2

Conversion costs =

Answer 2

direct labor + factory overhead

Question 3

Cycle time =

Answer 3

process time + inspection time + move time + wait time

Question 4

Cycle efficiency =

Answer 4

value-added time/cycle time

Question 5

Overhead rate % =

Answer 5

budgeted overhead/ budgeted direct labor

Question 6

Predetermined overhead rate =

Answer 6

estimated OH costs/ estimated activity base

Question 7

Overhead applied =

Answer 7

direct labor cost X predetermined rate

Question 8

Variable cost per unit

Answer 8

change in cost/ change in units

Question 9

Total cost =

Answer 9

fixed cost + (variable cost X units)

Question 10

Contribution margin per unit =

Answer 10

sales price per unit - total variable cost per unit

Question 11

Contribution margin ratio =

Answer 11

contribution margin per unit / sales price per unit

Question 12

Break-even point in units =

Answer 12

fixed costs/ contribution margin per unit

Question 13

Break-even point in dollars =

Answer 13

fixed costs/ contribution margin ratio

Question 14

Accounting rate of return =

Answer 14

annual after-tax income/ annual avg. investment

Question 15

Profitability index =

Answer 15

net present value of cash flows/ investment

Question 16

Present value factor =

Answer 16

amount invested/ net cash flows

Question 17

Cost variance (cv) =

Answer 17

actual cost (ac) - standard cost (sc)

Question 18

Actual cost (ac) =

Answer 18

actual quantity (aq) X actual price (ap)

Question 19

Standard cost (sc) =

Answer 19

standard quantity (sq) X standard price (sp)

Question 20

Contribution margin =

Answer 20

sales - variable costs

Question 21

Inventory to be purchased =

Answer 21

budgeted ending inventory + budgeted cost of sales for the period - budgeted beginning inventory

Question 22

Profit Center:

Answer 22

incurs cost & generates revenues

ex. selling dept.

Question 23

Cost Center:

Answer 23

incurs costs & generates revenues & is responsible for effectively using center assets.

Question 24

Investment Center:

Answer 24

incurs costs & generates revenues & is responsible for effectively using center assets.

Question 25

Precent change (%) =

Answer 25

(analysis period amount - base period amount / base period amount) X 100

Question 26

Trend precent (%) =

Answer 26

(analysis period amount/base period amount) X 100

Question 27

Common-size Percent (%) =

Answer 27

(analysis amount/ base amount/ X 100

Question 28

Current Ratio =

Answer 28

current assets/ current liabilities

Question 29

Acid-test Ratio =

Answer 29

(cash + short-term invest. + current receivables invest)/ current liabilities

Question 30

Accounts receivable turnover =

Answer 30

net sales/ avg. accounts receivable, net

Question 31

Inventory turnover =

Answer 31

cost of good sold/ avg. inventory

Question 32

Day’s sales uncollected =

Answer 32

(accounts receivable, net/ net sales) X 365

Question 33

Day’s sales in Inventory =

Answer 33

(ending inventory/cost of goods sold) X 365

Question 34

Total asset turnover =

Answer 34

net sales/ avg. total assets

Question 35

Debt-to-equity ratio =

Answer 35

total liabilities/ total equity

Question 36

Profit Margin =

Answer 36

net income/ net sales

Question 37

Return on total assets =

Answer 37

net income/ avg. total assets

Question 38

Return on total assets (turnover?) =

Answer 38

profit margin X total asset turnover

Question 39

Price earnings ratio =

Answer 39

market price per common share/ earnings per share

Question 40

Dividend yield =

Answer 40

annual cash dividends per share/ market price per share