ACC406 Midterm Review Exam UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

ACC406 Midterm Review Exam
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Indirect Cost - CORRECT ANSWER Hard to trace

Example: The transportation of pizza toppings, the wages for the employees



Direct Cost - CORRECT ANSWER Easy to trace, physically observed



Behaviour of fixed cost - CORRECT ANSWER When the cost stays constant whether or not
the output increases or decreases



Mixed cost - CORRECT ANSWER The combination of variable and fixed cost.



Behaviour of variable cost - CORRECT ANSWER The cost varies in proportion to the output
increase or decrease



Characteristics of Financial Accounting (5) - CORRECT ANSWER External, historical, must
follow rules, objective, information about the entire firm as a whole



Objectives of Managerial Accounting (3) - CORRECT ANSWER - Information is used for
planning the organizations actions

- Information is used for controlling the organizations actions

- Information is used to make decisions



Cost of Goods Manufactured Formula - CORRECT ANSWER DM + DL + OH + Beginning
WIP - End WIP



Cost of Goods Sold Formula - CORRECT ANSWER Beginning Finished Goods + COGM -
End Finished Goods