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Dr. Andersen Exam 5
SDSU ACCTG 202 exam number 5
23
Accounting
Undergraduate 2
05/05/2011

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Cards

Term
do you always or never include DIRECT FIXED COST?
Definition
Always include
Term
do you always or never include AVODIABLE FIXED COST?
Definition
Always Include
Term
do you always or never include COMMON FIXED COST?
Definition
Never include
Term
do you always or never include ALLOCATED FIXED COST?
Definition
Never Include
Term
The Joint Process Cost is Sunk. T/F
Definition
True
Term
There is an extra cost between the Split off point and the Sell Price after Cost. T/F
Definition
True
Term
Define Quantative
Definition
analyzing the numbers
Term
Define Qualitative
Definition
non-numerical factors which could impact final decision such as:customer satisfaction, impact on society, etc.
Term
What are the first three steps of Decision Making?
Definition
1) Clarify the decision program
2) Specify the Criterion(goal)
3) Identify the alternatives
Term
What are the last three steps of Decision Making?
Definition
4) Develop a decision model
5) Collect the Data
6) Select alternative
Term
What are the three characteristics of useful data
Definition
1) Relevant
2) Accurate
3) Timely
Term
Opportunity cost is relevant. T/F
Definition
True-its always relevant
Term
Sunk cost is relevant. T/F
Definition
False
Term
When labor time is limited, do you decide how much of a product to produce based on CONTRIBUTION MARGIN OR CONTRIBUTION MARGIN per HOUR?
Definition
CONTRIBUTION MARGIN PER HOUR
Term
When it comes to decision making, a managerial accountant is chiefly responsible for the:
A) Collection of data so that a decision can be made
B) Clarification of the decision problem
C) Selection of an alternative
Definition
A) Collection of data...
Term
What is GOAL CONGRUENCE?
Definition
When managers throughout an organization strive to achieve goals set by top management
Term
What is DECENTRALIZATION?
Definition
Allowing divisions to run themselves without a lot of input from Corporate headquarters
Term
What is an INVESTMENT CENTER?
Definition
Manager controls and is judged on total profit of a unit and the invested capital of that unit. ROI is a measure of performance for an investment center
Term
What is one formula for ROI?
Definition
Income/Invested Capital
Term
What is a second formula for ROI?
Definition
Sales margin x Capital Turnover
Term
What is the formula for SALES MARGIN?
Definition
Income/Revenue
Term
What is the formula for CAPITAL TURNOVER?
Definition
Revenue/Invested Capital
Term
What is the formula for RESIDUAL INCOME?
Definition
Income-[minimum rate(a %)x capital)
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