Presentation

ACCG 22000D Final Exam Review Sheet The final exam will be completed on Connect. An assignment box will be available on SLATE to submit your supporting calculations. Format of final exam (worth 30% of final mark – covers Chapters 1 through 10 plus 13)

6 marks Multiple choice Chapters 1 through 6; all theory 9 marks Multiple choice Chapters 7, 8, 9, 10 and 13; all theory 75 marks Problems Eight exercises or problems (in spreadsheet files) 90 marks Total

Chapter Possible Topics Type of question Chapter 1: Introduction to Managerial Accounting

• Managerial versus Financial Accounting • Key functions of management including the plan-

implement-control cycle • Types of costs

• Opportunity costs (out of pocket) • Direct or indirect costs • Variable or fixed costs • Manufacturing or non-manufacturing costs • Product or period costs • Relevant or irrelevant costs

Multiple choice Bolded topics could appear in a problem from the second half

Chapter 2: Job Order Costing

• Difference between job order costing and process costing

• Describe the source documents used to track direct materials and direct labour costs to the job cost sheet

• Calculate the predetermined overhead rate and use it to apply manufacturing overhead to jobs

• Describe how costs flow through the accounting system in job order costing

• Calculate and dispose of over-applied or under- applied manufacturing overhead

• Calculate cost of goods manufactured and cost of goods sold

• Apply job order costing to a service setting

Multiple choice

Chapter 3: Process Costing

• Describe the key features of a process costing system • Reconcile the number of physical units (WA method) • Calculate the number of equivalent units (WA & FIFO) • Prepare a process costing production report (WA &

FIFO)

Multiple choice

Chapter Potential Topics Type of question Chapter 4: Activity-Based Costing and Cost Management

• Assign indirect costs to products or services using a single-volume-based cost driver

• Classify activities as unit-, batch-, product, or facility- level activities

• Assign indirect costs to activity cost pools and select a cost driver for each pool.

• Assign indirect costs to products or services using activity rates.

• Assign indirect costs to products or services using activity proportions.

• Compare the results of a volume-based cost system to activity-based costing.

• Apply activity-based costing to a service industry • Describe how managers use activity-based

management and other cost management methods.

Multiple choice

Chapter 5: Cost Behaviour

• Identify costs as variable, fixed, step, or mixed. • Understand a scatter-graph depicting the relationship

between total cost and activity. • Use the high-low method to estimate cost behaviour. • Use least-squares regression to estimate cost

behaviour. • Prepare and interpret a contribution margin income

statement • Compare variable costing to full absorption costing.

Multiple choice Bolded topics could appear in a problem from the second half

Chapter 6: Cost-Volume- Profit Analysis

• Cost-Volume- Profit Analysis • Assumptions of Cost-Volume-Profit Analysis • CVP Graph • Basic CVP Analysis • Profit Equation Method • Unit Contribution Method • Contribution Margin Ratio Method

• Apply Cost-Volume-Profit Analysis • Margin of Safety • CVP for Decision Making • Changes in Cost Structure (Degree of Operating Leverage)

• Mult-product Cost-Volume-Profit Analysis • Weighted-Average Contribution Margin • Weighted-Average Contribution Margin Ratio

Multiple choice

Chapter 7: Incremental Analysis for Short-term Decision Making

• Managerial Decision-Making Framework • Special Order Decisions • Make or Buy Decisions • Keep or Drop Decisions • Sell or Process Further Decisions • Prioritize Products with Constrained Resources

Multiple choice Two problems (could include a short answer question)

Chapter Potential Topics Type of question Chapter 8: Budgetary Planning

• Describe (a) how and why organizations use budgets for planning and control and (b) potential behavioural issues to consider when implementing a budget

• Describe the major components of the master budget and their interrelationships

• Prepare the following components of the operating Budgets • Sales budget • Production budget • Direct materials purchases budget • Direct labour budget • Manufacturing overhead budget • Selling and administrative expense budget • Budgeted income statement (Financial budget)

• Prepare the cash budget and describe the relationships among the operating budgets, cash budget (financial budget) and budgeted balance sheet (financial budget)

• Prepare a merchandise purchases budget for a merchandising firm

Multiple choice Two problems (could include a short answer question) One problem on operating budgets and one problem on cash budgets and related budgets (cash receipts budget, cash payments budget)

Chapter 9: Standard Costing and Variance Analysis

• Describe the standard-setting process and explain how standard costs relate to budgets and variances

• Prepare a flexible budget and show how total costs change with sales volume

• Calculate and interpret the direct materials price and quantity variances

• Calculate and interpret the direct labour rate and efficiency variances

• Calculate and interpret the variable overhead rate and efficiency variances

• Calculate and interpret the fixed overhead spending and volume variances

•

Multiple choice One problem (could include a short answer question) Will be on variances

Chapter 10: Decentralized Performance Evaluation

• List and explain the advantages and disadvantages of decentralization

• Describe the different types of responsibility centres and explain how managers of each type are evaluated

• Describe the four dimensions of the balanced scorecard and explain how they are used to evaluate manager performance

• Compute and interpret return on investment, investment turnover and profit margin

• Compute and interpret residual income • Explain how transfer prices are set in decentralized

organizations

Multiple choice Two problems (could include a short answer question) One problem on evaluating performance (ROI and RI) and one problem on transfer pricing

Chapter Potential Topics Type of question

Chapter 13: Measuring and Evaluating Financial Performance

• Describe the purposes and uses of horizontal, vertical and ratio analyses

• Use horizontal analyses to recognize financial changes that unfold over time

• Use vertical (common size) analyses to understand importance relationships with financial statements

• Calculate financial ratios to assess profitability, liquidity, and solvency

• Interpret the results of financial analyses

Multiple choice One problem (could include a short answer question)