Week 8 For Academic Giant

Your Name Here Final Exam: Ch 18 - 25

Name: __________________________ Date: _____________

You must complete answer all questions – be a very careful reader

7 Questions: 6 essays; plus 1 Problem Ch 18 to 25 …

Please try to complete the exam in one setting Save the exam file as a word document with your name in the file name such as Harold_Brink_Final_Exam

UMUC – ACCT 301 Due Sunday March 6, 2016 This quiz is to be completed without the assistance of any other person.

You may use only the resources provided by your instructor for this class.

** Save this file & include your name in the file name: Harold_Brink_Final Exam

You may create an Excel and / or Word File for your work. Please verify that each page prints out formatted with your name and page number on the page. Excel files should show gridlines.

Excel ‘page format’ has options for grid lines (sheet) and headers/footers.

At a minimum, use print preview so you can see how the work will print out.

I pledge on my honor that I have not given or received any unauthorized assistance on this examination. In addition, I pledge that I will not disclose to, or discuss the contents of this examination with, students who have not taken it.

_________________________________________________________________________

Signed

Good Luck!!! Answer all questions! Prepare and present calculations for partial credits for questions with calculations and presentations.

Final Exam Ch 18 - 25 - Your Name ____________________ (also include your name in the file name)

Q1

The costs for Clark Equipment to make a part in house are displayed below:

Per Unit

Direct Materials $ 3.00 Direct Labor 7.00 Allocated Overhead 10.00

Total Cost $20.00

Moving to an outside vendor will allow Clark Equipment to reduce their overhead costs by 70%. What is the maximum purchase price the company should consider to move to an outside vendor without respect to any other issue?

(present calculations for partial credit). Label your answer.

Q2

When considering a move to outsourcing a process, eliminating a department and all its employees, what issues should be considered? These issues should be financial as well as strategic. Your answer should be presented as a bulleted list.

Q3

What issues should be considered when deciding whether to eliminate a department in a retail store? Your answer should discuss the issues of profitability and include the concept of the contribution format income statement as well as the effect on sales for the store.

Q4

How might the use of a predetermined overhead rate compare to the actual results of the activities affected by the predetermined overhead rate? Your answer should begin by explaining how a predetermined overhead rate is calculated and conclude with why there would be variances from the original estimated values in the calculation (do not discuss any variables except those directly related to the predetermined overhead rate calculation).

Q5

What is the first budget and why is that important? How does it affect all remaining budgets?

Q6

Describe the specific items you would use to calculate how much of a product to produce or acquire for the period? Your answer should be based on the budget chapter as well as on the basic formula related to inventory, discussed at various points throughout our class.

Q7

Your company is building the budget for next year and asks your assistance. How might you use the high low method, including its calculation and the cost formula for total cost. Your answer, focusing on the high low method, should include how costs can be calculated, what purpose the method serves, and what issues may arise regarding the accuracy of the resulting conclusion regarding costs based on the high low method.

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