LAST NAME: _________________________ FIRST NAME___________________________ PUID________________________________Section________ Purdue University Krannert School of Management MGMT 201 – Managerial Accounting I Spring 2015 Practice Midterm Exam This practice exam consists of 30 multiple choice questions on 11 pages (including this cover page). Answer all questions. No partial credit is available for multiple choice questions. Be sure to put your answers to the multiple choice questions on your Scantron
MANAGEMENT AND ACCOUNTANCY Accounting 206: Cost Accounting and Cost Management, Part II Midterm Examination Kelvin J. Culajara, BSA, CPA Name: _____________________________________ Date: _______________ Score: __________ Test 1: Comprehensive Problem/Reporting Assume that you are the newly-hired chief cost accountant of Wapayutana Company. As the chief officer, you are tasked to monitor the flow of costs throughout the process, and hence, you are accountable for the cost of production report
Acct 340-Midterm Review Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Which of the following is NOT a process associated with an accounting information system? |a. |auditing existing data | |b. |collecting and recording data | |c. |providing information
is a cost driver for some of the activities in RDS, but not all are driven by production of oil. UOC = Total Operating Expense (OPEX) excluding exploration, depreciation, and depletion therefore there are other activities like exploration, new capital equipment for exploration, research and development, depreciation on equipment, and depletion are costing money whether you are making oil or not. RDS is monitoring costs per barrel and SG assembled the CLT team to learn how to control costs in order
costing accumulates costs in a department for an accounting period and then spreads them evenly, or on an average basis, over all units produced that month. Process costing is an easier system to use when costing homogenous products compared to other cost allocation methods. Each process applies direct materials, labor and manufacturing overhead to the production cost total. Management accountants take the total number of goods leaving the process and divide the total process cost by this number. This
2.1 Strategic Cost Management and the Value Chain Introduction This article by John K. Shank and Vijay Govindarajan discuss in depth on the Strategic Cost Management (SCG) and the Value Chain concept applied in real world situation from the airline industry. The Value Chain concept is divided into two (2) main strategies which are the Low-Cost Strategy and Differentiation Strategy. From the article also, Shank and Govindasamy stated that the primary focus of a low cost strategy is to achieve the
led to an increasing need to rationalizing Lehigh Steel’s product mix. Traditionally, Lehigh Steel has followed Standard Cost Method for cost accounting. Jack Clark, CFO of Lehigh Steel has given Bob Hall the task of implementing Activity Based Costing at Lehigh Steel. Mark Edwards, Director of Operations and MIS explored the implementation of Theory of Constrains (TOC) accounting for Lehigh
end, they came up with the conclusion the cost allocation method was not accurate, and it led to the inappropriate pricing strategy. The company uses three methods to compute the unit cost of each product—traditional cost method, revised cost method and activity-based cost method. Under traditional cost method, allocation of manufacturing overhead is simply based on direct labor. This method will be only precise when the overhead cost is highly
Question 1) Generally Accepted Accounting Principles require that product costs include all manufacturing costs and only manufacturing costs. Activity-based costing usually does not include all manufacturing costs and will often include nonmanufacturing costs. Therefore, ABC is not currently acceptable under GAAP. Kenco’s costing system is preferable under GAAP because it includes all manufacturing costs, and only manufacturing costs. Kenco currently uses one cost driver: a product’s consumption
Managerial Accounting: John Deere Component Works John Deere Component Works (JDCW), subdivision of John Deere and Co. was in charged specifically of the manufacturing of tractor component parts. The demand for JDCW’s products had problems due to the collapse of farmland value and commodity prices. Numerous and constant failures in JDCW’s competition for bids, alerted top management to start questioning their current costing methods. As an outcome, the analysis has to be guided to research on