REVIEW FOR ACCT5131 - EXAM I (CHAPTERS 1-4) This review sheet will be helpful in preparing for your first

exam; however, the list below is NOT 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. Its the 8 x 11 blue one. Ill provide a calculator and will bring a clock. No cell phones are allowed 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 some questions. On average, you have about 4.5 minutes per question. I suggest you set some time limits and STICK TO THEM. For example, by 4:40, you should have completed x number of questions. This is a thorough exam. Know the material. Critical hint: When studying, work problems, dont look at problems. You must put a pencil to the problems to realize what you cant figure. Suggested Topics to Study Purposes of cost management and management accounting Definitions and processes in value chain and extended value chain Eight steps for implementing change in an organization Definition of product costs versus period costs Calculation of cost of goods sold using throughput, variable, and absorption costing Calculation of operating income using throughput, variable, and absorption costing Difference in operating income using variable and absorption costing Basic cost flow model Definitions of job costing, process costing, and operation costing Calculation of predetermined manufacturing overhead application rate Calculation of job costs Calculation of manufacturing overhead variances How to and why dispose of overhead variances Definition and selection of cost driver Calculation cost driver rates Costs classified as manufacturing overhead Definition of conversion costs (topics continue next page)

Characteristics of activity-based costing Hierarchy for resources and activities Calculation of product costs using the traditional method Calculation of product costs using ABC method Calculation 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. 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.

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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 Direct material cost Direct labor cost Manufacturing overhead, all fixed Marketing and administrative cost, all fixed Total costs 100 $ 100,000 $ 300,000 $ 272,000 $ 425,000 $1,097,000

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What is the throughput cost per unit? A. $ 10,970 B. $ 4,000 C. $ 1,000 D. $ 6,970 What is the absorption cost per unit? A. $ 1,900

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