Accounting 202 - Final Exam Hints
Friday, May 7, 2004
5:15-7:15 PM

• Exam will be given at the following buildings and room numbers:

•     Section  01 (Kilgore)    BA 135

•     Section  02 (Putman)    Humanities Auditorium

•     Section  03 (VanVuren)  BA 33

•     Section  06 (Jackson)  BA 36   

     50 points - 50 multiple choice questions (from all chapters covered)
       6 points - Identification and calculation of product costs (total and per unit)
       6 points - Determination of predetermined overhead rates (traditional and ABC)
       6 points - Calculation of margin, turnover, and return on investment (ROI)
       8 points - Calculation and determination of acceptability of long-term investment
       6 points - Cost-volume-profit problem: Determination of sales dollars for a target
                       after-tax profit and effect of pretax income of one additional sales unit
      10 points - Direct labor rate, efficiency, and total variance calculation
        8 points - Identification of quality costs as prevention, appraisal, internal failure
                        or external failure  

  100 points total

Be sure to bring your calculator (with good batteries), a sharp pencil and an eraser. The
multiple choice questions will be machine scored.

This exam covers a lot of material--don't wait until the last minute to prepare.

At a minimum, be sure you know the following:

• Planning and control cycle
• Costs:
       Different categories (fixed v. variable; product v. period; direct v. indirect)
       Behavior of fixed v. variable costs (per unit and total as level of production varies)
       Manufacturing process:
            Manufacturing (Factory) overhead:
                 what it is
                 how it is applied to production (predetermined rate)
                 accounting for under/overapplied overhead
      Different inventory accounts, and how costs flow through the manufacturing system
            (from direct materials, labor, and overhead thru Cost of Goods Sold)
            What is meant by activity based costing
            What is meant by cost of goods manufactured and how it is calculated
       Cost Volume Profit Analysis:
            Calculate Breakeven Point (in units and sales $) and after-tax profit targets
            Contribution Margin
            Impact on Breakeven Point of changes in:
                 Fixed Cost
                 Variable Cost
                 Sales Price
       Special order decisions
       Budgeting:
            Types of budgets
            Calculations:
                 budgeted units to produce/purchase
                 budgeted cash flows from sales
            Flexible Budget
       Variances:
            Direct materials
            Direct labor variances
• Types of cost systems and industries likely to use each type
• Time value of money and how it affects capital investment decisions
• Return on investment, sales margin, asset turnover, and residual income
• Calculation of payback period, profitability index and net present value of long-term investments
• Quality cost categories: prevention, appraisal, internal failure, and external failure
  
• Study hard and Good Luck!!