review exam i (ch 1-4) hilton 4e

7/29/2019 Review Exam i (Ch 1-4) Hilton 4e

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REVIEW FOR ACCT5131 - EXAM I

(CHAPTERS 1-4)

This review sheet will be helpful in preparing for your first exam; however, the list below isNOT intended to include all topics covered on the exam.

Your first exam is over chapters 1-4. You will have a total of 33 questions, each worth 3 points.You will get one free point! The exam consists of both theoretical and computational questions.

You need to bring a pencil, big eraser, and General Purpose-Pearson NCS-Answer Sheet. Itsthe 8 x 11 blue one. Ill provide a calculator and will bring a clock. No cell phones areallowed in the class room. Youll have 2.5 hours to complete the exam.

You must manage your time or you face the risk of running out of time and not answering somequestions. On average, you have about 4.5 minutes per question. I suggest you set some timelimits and STICK TO THEM. For example, by 4:40, you should have completed x number ofquestions.

This is a thorough exam. Know the material.

Critical hint: When studying, work problems, dont look at problems. You must put apencil to the problems to realize what you cant figure.

Suggested Topics to Study

Purposes of cost management and management accountingDefinitions and processes in value chain and extended value chainEight steps for implementing change in an organization

Definition of product costs versus period costsCalculation of cost of goods sold using throughput, variable, and absorption costingCalculation of operating income using throughput, variable, and absorption costingDifference in operating income using variable and absorption costingBasic cost flow modelDefinitions of job costing, process costing, and operation costingCalculation of predetermined manufacturing overhead application rateCalculation of job costsCalculation of manufacturing overhead variancesHow to and why dispose of overhead variancesDefinition and selection of cost driver

Calculation cost driver ratesCosts classified as manufacturing overheadDefinition of conversion costs

(topics continue next page)

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Characteristics of activity-based costingHierarchy for resources and activitiesCalculation of product costs using the traditional methodCalculation of product costs using ABC methodCalculation of client margin and overall operating profit for a service organization

Below are two sample theory questions:

1 What is the throughput product costing method?A. One that includes only direct material costs in the costs of the product.B. One that includes only fixed costs in the costs of the product.C. One that includes both direct and indirect costs in the costs of product.D. One that includes only variable costs in the costs of product.

2. Which of the following is the first step in activity-based costing?A. Assign activity costs to products.

B. Identify and classify activities related to the companys products.C. Calculate a cost-driver rate for each activity.D. Estimate the cost of activities.

Below are two sample computational questions:

Use the following to answer questions 3 and 4:

Peterson Company has gathered the following data for the week ended April 30:

Quantity produced 100

Direct material cost $ 100,000

Direct labor cost $ 300,000

Manufacturing overhead, all fixed $ 272,000

Marketing and administrative cost, all fixed $ 425,000

Total costs $1,097,000

3. What is the throughput cost per unit?A. $ 10,970B. $ 4,000C. $ 1,000D. $ 6,970

4. What is the absorption cost per unit?A. $ 1,900


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B. $ 6,970C. $ 9,052D. $ 6,720

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review exam i (ch 1-4) hilton 4e

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