FINAL EXAM TOPIC LIST
50 questions at 6 points a question
Chapter 10 (8 questions)
Direct materials price and quantity variances. Understand calculations and meaning.
Direct labor efficiency and rate variances. Understand calculations and meaning.
Chapter 11 (9 questions)
Compute ROI and show how changes in sales, expenses and assets impact ROI.
Compute residual income and understand its strengths and weaknesses
Chapter 12 (9 questions)
Identify relevant costs and irrelevant costs (think avoidability)
Should a product line be dropped?
Make or Buy?
Should we accept a special order?
What is the most profitable use of a constrained resource?
Chapter 2 (4 questions)
Chapter 3 (4 questions)
Chapter 5 (5 questions)
Chapter 8 (2 questions)
Chapter 9 (3 questions)
WSJ/Rich Baldwin (6 questions) WSJ Bean counter, Lobsters, Tesco, Starbucks
BRING VARIANCE TREES
Total 50 questions
1) The standards for direct labor for a product are 3 hours at $8 per hour. Last month, 9,000 units of the product were made and the labor efficiency variance was $8,000 F. The actual number of hours worked during the past period was:
SQXSP 27000DLH X 8 DLH AQxSP (8)
3X9000 216000-8000 208000
2) Average operating assets are $110,000 and net operating income is $23,100. The company invests $25,000 in new assets for a project that will increase net operating income by $5,000. What is the return on investment (ROI) of the new project?
ROI = Margin X TURN OVER = NOI / AOA
3) Sales and average operating assets for Company P and Company Q are given below:
What is the margin that Company P will have to earn in order to generate a return on investment of 30%?
ROI = M x TO 30% = OI/Sales x Sales/AOA Margin = 12% .3 = M x 20000/8000
4) A study