Costs that do not change from accounting period to accounting period are:
What is fixed costs
100
Producing products individually designed to meet the needs of a specific customer is called:
What is job order production
100
What are standard costs?
What is Preset costs for delivering a product or service under normal conditions
100
What is the payback period equation?
What is cost of investment/annual net cash flow
100
What is included on the balance sheet?
What is assets, liabilities, and owner's equity.
200
What section changes on the statement of cash flows with using the direct method vs the indirect method?
What is the operating section
200
What three things do we use to calculate the cost per unit? (COGS)
What is DM, DL, OH
200
What are sunk costs?
What is are the result of past decisions and cannot be changed by any current or future decisions. Sunk costs are irrelevant to current or future decisions.
200
Define the accounting rate of return
What is the percentage accounting return on average annual investment
200
What is the formula for predetermined Overhead rate?
What is estimated OH/estimated activity base
300
Ratios that show us the company's ability to generate return on invested capital is:
What is Profitability ratios
300
What are mixed costs?
What is include both fixed and variable cost components
300
What is the difference between fixed and flexible budgets?
What is flexible shows revenues and expenses that should have occurred at the actual level of activity. Fixed shows revenues and expenses at a certain activity level (usually predicted.)
300
What do we find when we discount the future net cash flow from an investment at the project's rate of return (less investment cost)?
What is net present value NPV
300
The three sections that appear on a statement of cash flows are:
What is operating, investing, and financing.
400
What is the difference between direct and indirect costs?
What is direct are traceable to a single cost object (DM vs OVERHEAD)
400
What is the formula for the contribution margin per unit?
What is selling cost - variable costs
400
What is the formula for price variance?
What is AQ (AP-SP)
400
What is the internal rate of return?
What is the discount rate that yields an NPV of zero for an investment?
400
what is included in the investing section of the statement of cash flows?
Buying and selling assets, LT/ST investments etc.
500
Name the four different types of ratios:
What is Liquidity and efficiency, solvency, profitability, and market prospects
500
What is the difference between variable and period costs?
What is Variable costs change in total with changes in production level are included in product costs.
Period costs are typically fixed costs that occur during a certain period in time
500
What is the formula for quantity variance?
What is SP(AQ-SQ)
500
When evaluating projects, what do we call the minimum acceptable rate of return?
What is hurdle rate
500
what is the formula for the accounting rate of return?
What is annual after tax income/annual average investment