9 months ago

(WIP) ACC 350 Exam 1 Study Material

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Preface : The original

Preface : The original study guide ACC 350 Topics for first test: • Chapters 1 and 2 o Concepts and Terminology, e.g., product and period costs, direct labor, material, and OH ÷ costs, relevant range, opportunity costs, cost drivers, fixed and variable costs, etc. o Know how to sort expenses by category, e.g., direct material, direct labor, and overhead. o Understand how to prepare an income statement and a schedule of cost of goods manufactured and sold. • Chapter 5: Activity-Based Costing and Activity-Based Management o Concepts and Terminology. o Understand why traditional costing could lead to under- and over-costing products and services. o Determine the cost of activities and calculate cost driver rates. o Assign activity costs to goods and services. o Calculate product cost using both the “traditional” and activity-based approach. o Determine the profitability of products and customers. • Chapter 15: Allocation of Support Department Costs, Common Costs & Revenues o Concepts and terminology o Know the direct and sequential (step) methods to allocate service department costs to producing departments. For sequential, be able to determine which service department is allocated first. o Know how to calculate overhead rates from the operating departments to assign overhead costs to products, jobs, or services. • Time-Driven Activity Based Costing article. The test will approximate the following: Conceptual: ​ ​25 points Numerical: ​ ​75 points Sum ​ 100 points

Pg. 1 Sarah Allison Takash ACC 350, Spring 2018 Exam 1 Study Material OVERVIEW NOTE: highlighted text in overview section corresponds to yellow & dark blue highlighted text in original study guide (located on the previous page) ● Chs. 1 & 2 :​ ​Introduction to Cost Accounting​ ….. P. 2 ○ Terminology ​Definitions (terms list in study guide) ….. P. ○ Other Terminology Definitions (terms not listed in study guide, but worth noting) ….. P. ○ Complete List of Terms (from end of chs, in textbook, with corresponding page #s) ..... P. ○ How to ​Sort Expenses By Category (e.g. DM, DL, & OH)​ ….. P. ○ How to ​Prepare an Income Statement​ ….. P. ○ How to ​Prepare a Schedule of Cost of Goods Manufactured and Sold​ ….. P. ○ Blackboard Problems ….. P. ■ Review Problems (followed by solutions) ….. P. ■ Exam 1 Practice Problems (followed by solutions)….. P. ■ In-class Problem (followed by solutions) ….. P. ● Ch. 5 :​ ABC (Activity Based Costing)​ …..P. ○ Complete List of Terms (from end of chs, in textbook, with corresponding page #s) ….. P. ○ Terminology​ Definitions ….. P. ○ Traditional Costing Effects: Under- and Over-Costing​ ….. P. ○ Determining the ​Cost of Activities ​….. P. ○ Calculating ​Cost Driver Rates ​….. P. ○ Assigning Activity Costs​ to Goods & Services ….. P. ○ Calculating Product Cost Using the ​Traditional Approach​ ….. P. ○ Calculating Product Cost Using​ ABC​ ….. P. ○ Determining the ​Profitability of Products​ ….. P. ○ Determining the ​Profitability of Customers​ ….. P. ○ Blackboard Problems ….. P. ■ Practice Problem (followed by solutions) ….. P. ■ In-class Problem (followed by solutions)….. P. ■ Milwaukee Problem (followed by solutions)….. P. ■ Brrrr Problem (followed by solutions)….. P.