LAST NAME: _________________________ FIRST NAME___________________________ PUID________________________________Section________ Purdue University Krannert School of Management MGMT 201 – Managerial Accounting I Spring 2015 Practice Midterm Exam This practice exam consists of 30 multiple choice questions on 11 pages (including this cover page). Answer all questions. No partial credit is available for multiple choice questions. Be sure to put your answers to the multiple choice questions on your Scantron
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Inventories management. Cost allocation‚ pricing and budgeting process. From the report‚ improvements of each firms could be discussed as well as suggestions of merging or not.Basically‚ using bugeting process‚ JIT methods‚ activity-based costing‚ absorption costing analysis to provide disadvantages and advantages in separate companies. Main Body CoolSchool is a manufacturer responsible for delivering fixed number of school uniforms for settled schools‚ they prefer to
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benefits and limitations of using target costing and life-cycle costing systems over the costing and performance measures currently being utilised by the company. The techniques currently being used by the company are useful for keeping costs under control‚ but they do not give an indication of the maximum costs the company can allow for designing new product features or profits over the total life cycle of a product. Target costing. Target costing is a pricing method used by companies as
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between Variable & Absorption Costing When it comes to managerial accounting‚ the way that information is presented can affect decision-making for a business. In a manufacturing environment‚ companies can use absorption costing or variable costing when accounting for the costs of products produced. While these methods are similar‚ they have some key differences that can impact the company. Absorption Costing * Absorption costing‚ also known as full costing is a method by which all of the
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traditional and activity based costing In the field of accounting‚ activity-based costing and traditional costing are two different methods for allocating overhead costs to products. In traditional costing systems‚ all manufacturing costs are assigned to products whether or not they are caused by the products. Furthermore‚ nonmanufacturing costs are not assigned to products‚ even those nonmanufacturing costs that are caused by the products. On the other hand‚ in activity based costing‚ nonmanufacturing costs
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Multiple Choice Questions 16. Which terms would make the following sentence true? Manufacturing companies that benefit the most from activity-based costing are those where overhead costs are a _________ percentage of total product cost and where there is ___________ diversity among the various products that they produce. A) low‚ little B) low‚ considerable C) high‚ little D) high‚ considerable 17. Would factory security and assembly
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ABC case study: Plum Electronics Plum Electronics‚ a division of Berry Corporation‚ manufactures two large-screen television models: the Mammoth‚ which has been produced since 2009 and sells for $990‚ and the Maximum‚ a newer model introduced in early 2011 that sells for $1‚254. Based on the following income statement for the year ended November 30‚ 2013‚ senior management at Berry have decided to concentrate Plum’s marketing resources on the Maximum model and to begin to phase out the Mammoth model
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Technical Briefing APRIL 2001 DEVELOPING AND PROMOTING STRATEGY Activity-based Management – An Overview IN THIS BRIEFING… ctivity-based management and activity-based costing (ABM/ABC) have brought about radical change in cost management systems. ABM has grown largely out of the work of the Texas-based Consortium for Advanced Manufacturing-International (CAM-I). No longer is ABM’s applicability limited to manufacturing organisations. The principles and philosophies of activity-based thinking
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observing the existing costing allocation‚ we found out there is an issue on the existing costing report that the manager could not be able to see the real situation. In light of this‚ there will be brought to the discussion on the feasibility of using an alternative costing method – Activity based costing (ABC) in the latter paragraphs. The issue of misallocation cost With the use of Traditional Absorption Costing (TAC) which means Wilkerson Company is now only put the costing of direct labor and
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managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion? a. Theory of constraints b. Just-in-time inventory c. Activity-based costing d. Total quality management Week Two: Cost Allocation Objective: Assess the advantages and disadvantages of an activity-based costing system. 4. As compared to a high-volume product‚ a low-volume product a. usually requires less special handling b. is usually responsible for more overhead costs per unit
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