(WIP) ACC 350 Exam 1 Study Material

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Pg. 17 Sarah Allison Takash ACC 350, Spring 2018 Exam 1 Study Material i. Over-pricing ii. Low market share as competition with lower prices gains consumers 24. Product-cost cross-subsidization a. Common in a traditional/simple costing system b. Undercosting one item and overcosting one or more of its other products 25. Activity a. Verb b. Event, task, or unit of work with a specified purpose c. Examples i. Designing products/processes ii. Setting up machines iii. Operations of machines iv. Setting up shipments v. Distributing d. Are sources of indirect costs e. Are used to refine total indirect costs into pools f. To achieve an effective balance, focus on activities that account for a sizable fraction of indirect costs g. Individual tasks can be combined into single activities if they all have the same cost driver i. Example: 1. A firm decides to combine maintenance of molding machines, operations of molding machines, and process control into a single activity—molding machine operations—because all these activities have the same cost driver: molding machine-hours. 26. Indirect-cost pools a. A grouping of indirect costs caused by activities b. In ABC: i. should be homogenous 1. Have the same or similar cause-and-effect/benefits-received relationship with a single cost-driver
Pg. 18 Sarah Allison Takash ACC 350, Spring 2018 Exam 1 Study Material c. Examples: i. Distribution costs pool 1. Includes: a. all costs associated with distribution ii. Set-up costs pool 1. Includes: a. all costs associated with setting up a machine 27. Cost-allocation base a. The cost-driver that proportionally causes an indirect cost-pool to increase b. Examples: i. Cubic feet of packages 1. Cost pool associated: distribution costs ii. Setup hours 1. Cost pool associated: set-up costs 28. Activity Based Management (ABM) a. Uses ABC to improve customer satisfaction and profitability b. Critical decisions: i. Pricing & product mix ii. Cost reduction iii. Process improvement iv. Product & process design Traditional Costing Effects: Under- and Over-Costing Summary: Traditional costing, also known as “simple costing” or “peanut-butter costing,” often leads to under/over-costing of products/services when applied to modern businesses. Historically used when companies produced low variety products with minimal overhead costs. The strategic consequences of traditional costing include mis-pricing of products/services along with the effects mis-pricing can lead to [under-pricing → lost profits & Over-pricing → low market share]
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Page 17 and 18: Ptt e. chs . Review 1132 Problems C
Page 19 and 20: P . 7 per - 3 solutions Ch. 2 Revie
Page 21 and 22: P . be 7-5 COMPUTATIONAL QUESTION 1
Page 23 and 24: P . Efg 7-7 Inventory balances for
Page 25 and 26: P . a. 7-9 8. The following informa
Page 27 and 28: 1=7-11 See Inventory balances for t
Page 29 and 30: P . 7-13 f- 8. The following inform
Page 31 and 32: p . Be 7-15 #2 - COGM / COGS Hanks
Page 33 and 34: a. t 7- it Solutions ACC 350 In-Cla
Page 35 and 36: P . soft 7-19 InClass Problems - Ch
Page 37: 20. Cost hierarchy Pg. 16 Sarah All
Page 41 and 42: 29. Steps: Pg. 20 Sarah Allison Tak
Page 47 and 48: Solutions ACC 350 Practice problem
Page 49 and 50: Problem #2 - Activity Based Costing
Page 53 and 54: solutions ACC 350 In-Class Problems
Page 55 and 56: Requirements: 1. Determine the plan
Page 59 and 60: Standard: ($42,500 * .50) / 15,000
Page 61 and 62: Solutions Milwaukee Company Problem
Page 63 and 64: d. Determine the gross margin (per
Page 65 and 66: InClass Problems - Chapter 4 Requir
Page 67 and 68: Requirements: a. Determine the plan
Page 69 and 70: $1,715,071 $1,854,929 # of Units 50
Page 71 and 72: $1,715,071 $1,854,929 # of Units 50
Page 75: Summary of Article Pg. 27 Sarah All

(WIP) ACC 350 Exam 1 Study Material

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