Exam (elaborations)
ACC 241 Exam 3 ASU Dallmus 67 Questions with Verified Answers,100% CORRECT
- Course
- Institution
ACC 241 Exam 3 ASU Dallmus 67 Questions with Verified Answers
[Show more]
Content preview
ACC 241 Exam 3 ASU Dallmus 67 Questions with VerifiedAnswers
Relevant costs - CORRECT ANSWER Relevant costs are costs that differ between
alternatives.When making the decision, the company should consider relevant
costs.
Relevant costs are also called differential costs, incremental costs, or avoidable
costs.
Analyzing special orders - CORRECT ANSWER -Whether excess capacity exists
-Whether the special order will affect regular sales in the long run
-Whether the special price will be high enough to cover incremental costs of filling
the order
product pricing - CORRECT ANSWER When an item first comes on the market it is
generally higher than when it's been on the market for a while
(cost plus, target costing)
How to analyze dropping a product line decision? - CORRECT ANSWER A company
should drop the product line only if avoidable cost savings are greater than the
contribution margin lost.
Make versus Buy decisions - CORRECT ANSWER Decisions involve deciding
whether to perform a particular function in-house versus buying it from and
outside supplier
- If the incremental costs of making exceed the incremental costs of buying, then
the company should buy it.
Sell as is or process further decisions - CORRECT ANSWER For sell as is or process
further decisions, if the incremental revenue from processing further exceeds the
incremental cost of processing further, then the correct decision is to process
further.
, master budget - CORRECT ANSWER A comprehensive financial plan consisting of
various individual budgets; done at the beginning of a period
Benefits of Budgeting - CORRECT ANSWER 1. Forces managers to plan
2. Facilitates coordination and communication within the business
3. Helps motivate personnel throughout organization to meet planned objectives
4. Provides a standard for performance evaluation
Types of responsibility centers - CORRECT ANSWER cost center, revenue center,
profit center, investment center
cost center - CORRECT ANSWER a business segment whose manager has control
over cost but has no control over revenue or investments in operating assets
revenue center - CORRECT ANSWER a responsibility center in which managers are
responsible for generating revenue
profit center - CORRECT ANSWER separate company unit responsible for its own
costs and profits
investment center - CORRECT ANSWER a division that generates revenues, incurs
costs, and controls the investment of available funds.
-managers are evaluated on profitability of divisions and efficient use of assets.
Ex: subsidiary companies, Stand-alone divisions of a company
Responsibility Accounting - CORRECT ANSWER (System for evaluating the
performance of each responsibility center and its manager.)
is a system for evaluating the performance of each responsibility center and its
manager. Responsibility accounting performance reports compare plans (budgets)
with actual results for each center. Superiors then evaluate how well each
manager controlled the operations for which he or she was responsible.
(planning, directing, controlling)
flexible budgets - CORRECT ANSWER budgets prepared for different volumes of
activity
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller paulhans. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75632 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now