Exam 2 Study Guide
Day 1: Multiple Choice – 20 questions– scaled to reflect 40% of the Exam 2 grade
Conceptual and Short Problems
Day 2: Problems – 4 problems– scaled to reflect 60% of the Exam 2 grade
One problem from each chapter
What are inventoriable costs? Period costs?
Be able to calculate: mfg. cost per unit; operating (period) cost per unit; inventory value; COGS; etc.
Be able to calculate the total cost of production at a certain level of activity. Be able to calculate the total cost at a different level of production hint: be sure you understand how to handle fixed costs when going from one level of activity to another!
How do costs flow through the accounting system? Journal entries?
Be able to calculate the breakeven point in units.
What would happen to operating income if sales increase by a certain dollar amount?
What are the differences between job and process costing?
What increases DM, WIP, and FG accounts?
Are direct and indirect costs handled differently when used by production?
If so, how does the accounting system reflect this through the journal entries?
Be able to calculate MOH rates and allocate costs.
What scenarios different than what was planned (costs or quantity of the cost allocation base) will result in over- or under-applied MOH costs?
What are the assumptions of ABC?
Why is it a better method to use than traditional “peanut butter” costing?
Be able to allocate costs to a product using ABC and traditional costing methods.