BSNS 115 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTION GRADED A++

BSNS 115 EXAM QUESTIONS AND ANSWERS WITH

COMPLETE SOLUTION GRADED A++

Comparative information

allows users to see how firm's financial position has changed between current and past

financial periods

cash basis

only when actual cash moves

Accrural basis accounting

recorded in the period the transaction occurs regardless of whether cash moves

Net assets=

OE

Management accounting

classified by the way it behaves

Finc accounting

classified by nature or function

Total cost=

fixed cost + variable cost

C-V-P analysis

analyses relationship between cost of business activity and output

all costs either fc or vc

, assumptions of cost behaviour

relevant range and linearity

cost margin

difference between VC and selling price. cm determines what portion of a sale is FC

and profit

TCM=

sales-variable cost

UCM=

selling price per unit- vc per unit

CM ratio

Total CM/Sales

CM ratio per unit

UCM/SP

break-even point

the point where total revenue equals total cost

BE in units

FC/CM per unit

BE in $

FC/CM ratio or BE units X SP

BE + desired profit in units

FC + profit/ CM per unit

BE + Desired Profit - $

FC + P/CM ratio or X SP