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| Section | Objectives |
|---|---|
| Budgeting and Planning | - Master budget components - Financial budgets (cash budget, budgeted income statement, budgeted balance sheet) - Operating budgets (sales, production, direct materials, direct labor, overhead) - Variance analysis |
| Decision Making and Performance Evaluation | - Make-or-buy and special order decisions - Relevant costs for decision making - Responsibility accounting and performance metrics - Balanced Scorecard concepts - Capital budgeting techniques (NPV, IRR, Payback Period) |
| Financial Accounting Fundamentals | - Understanding the accounting cycle - Recording transactions and adjusting entries - Preparing financial statements (Income Statement, Balance Sheet, Statement of Cash Flows) - Accrual vs. cash basis accounting |
| Managerial Accounting Concepts | - Cost-Volume-Profit (CVP) analysis - Cost classification and behavior (fixed, variable, mixed costs) - Job order and process costing - Contribution margin and break-even analysis |
| Financial Statement Analysis | - Interpreting financial data for decision-making purposes - Ratio analysis (liquidity, profitability, solvency, efficiency ratios) - Horizontal and vertical analysis |
What is a cost incurred as part of the production process?
Correct Answer: D 🗳️
Explanation: Only visible for VerifiedDumps members. You can sign-up / login (it's free).
A company plans to purchase inventory for the second half of a year as follows:
July = $100,000
August = $75,000
September = $225,000
October = $125,000
November = $250,000
December = $30,000
The company usually pays 50% of inventory purchases in the month of purchase, 35% in the following month, and 15% in the second month.
What are the forecasted October cash payments based on this information?
Correct Answer: D 🗳️
Explanation: Only visible for VerifiedDumps members. You can sign-up / login (it's free).
What purpose do the notes within financial statements serve to the Financial Accounting Standards Board?
Correct Answer: B 🗳️
Explanation: Only visible for VerifiedDumps members. You can sign-up / login (it's free).
A manufacturer produces three products A, B, and C.
The company uses the following information to determine activity rates for each pool.
Cost Pool
Costs
Total Activity
Pool 1
$300,000
20,000 hours
Pool 2
$20,000
500 pounds
Pool 3
$10,000
100 moves
Data concerning the three products appear in the following table.
Cost Driver
Product A
Product B
Product C
Number of hours
10,000
7,500
2,500
Number of pounds
150
250
100
Number of moves
20
40
50
What is the total amount of overhead applied to Product B?
Correct Answer: C 🗳️
Explanation: Only visible for VerifiedDumps members. You can sign-up / login (it's free).
A company's statement of cash flows includes the following cash transactions.
Sales = $1,250,000
Inventory purchase = -$750,000
Property and equipment purchase = -$280,000
Interest payment on long-term debt = -$25,000
Payment of wages = -$315,000
Payment of rent = -$40,000
Borrowing long-term debt = $200,000
Payment of cash dividends = -$15,000
Repurchase of treasury stock = -$40,000
Total cash flows = -$5,000
What is the total cash flow from investing activities?
Correct Answer: B 🗳️
Explanation: Only visible for VerifiedDumps members. You can sign-up / login (it's free).
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