ACG 2071 Final Exam Questions Answered Correctly Latest Update 2025
Financial Accounting - Answers -Financial statements
-External users
-Help in making investing and lending decisions
-GAAP
-Historical focus
-Reliable and objective
-Company as a whole
-Annually and quarterly
-Required by the SEC
-CPA audit data
Managerial Accounting - Answers -Various use for internal reports
-Internal users
-Help managers plan, direct, and control operations
-Whatever is useful
-Future focus
-Relevant
-Segments and divisions
-As needed
-Not required
-No formal audit
The two basic ways of generating more profit - Answers -increase revenue
-decrease expenses
Service companies - Answers -sell intangible services
-healthcare, consulting, banking
, Merchandising Companies - Answers -resell tangible products they purchased from suppliers
-walmart, target, bestbuy
Manufacturing companies - Answers -convert rm into fg
-toyota, jellybelly
cost object - Answers -anything we want to know the cost of
-Being the president of FSU, you would want to know the cost of:
dining halls, athletic department, library, dorms
direct costs - Answers -can trace the cost object, we know the cost belongs to the cost object and
therefore are comfortable with these costs
indirect costs - Answers -cannot trace to the cost object, so we must allocate these costs. They are
related but not as clearly as direct costs
cost driver - Answers dl hours
sunk costs - Answers costs that have already happened and are irrelevant
variable - Answers -constant per unit
-diff in total
fixed - Answers -diff per unit
-constant in total
dm - Answers primary materials that become a physical part of the finished product
dl - Answers compensation for employees who physically convert rm into fg
moh - Answers -all manufacturing costs other than direct materials and direct labor. In other words, all
indirect manufacturing costs such as indirect materials, indirect labor
-depreciation, insurance, utilities
income statement for service comp - Answers rev-op exp=op income
*op exp: salaries, rent, depreciation
income statement for merch comp - Answers rev-cogs=gp
gp-op exp=op income
income statement for manuf comp - Answers 1. beg rm inv+purchases/frieght in-end rm inv= DM USED
Financial Accounting - Answers -Financial statements
-External users
-Help in making investing and lending decisions
-GAAP
-Historical focus
-Reliable and objective
-Company as a whole
-Annually and quarterly
-Required by the SEC
-CPA audit data
Managerial Accounting - Answers -Various use for internal reports
-Internal users
-Help managers plan, direct, and control operations
-Whatever is useful
-Future focus
-Relevant
-Segments and divisions
-As needed
-Not required
-No formal audit
The two basic ways of generating more profit - Answers -increase revenue
-decrease expenses
Service companies - Answers -sell intangible services
-healthcare, consulting, banking
, Merchandising Companies - Answers -resell tangible products they purchased from suppliers
-walmart, target, bestbuy
Manufacturing companies - Answers -convert rm into fg
-toyota, jellybelly
cost object - Answers -anything we want to know the cost of
-Being the president of FSU, you would want to know the cost of:
dining halls, athletic department, library, dorms
direct costs - Answers -can trace the cost object, we know the cost belongs to the cost object and
therefore are comfortable with these costs
indirect costs - Answers -cannot trace to the cost object, so we must allocate these costs. They are
related but not as clearly as direct costs
cost driver - Answers dl hours
sunk costs - Answers costs that have already happened and are irrelevant
variable - Answers -constant per unit
-diff in total
fixed - Answers -diff per unit
-constant in total
dm - Answers primary materials that become a physical part of the finished product
dl - Answers compensation for employees who physically convert rm into fg
moh - Answers -all manufacturing costs other than direct materials and direct labor. In other words, all
indirect manufacturing costs such as indirect materials, indirect labor
-depreciation, insurance, utilities
income statement for service comp - Answers rev-op exp=op income
*op exp: salaries, rent, depreciation
income statement for merch comp - Answers rev-cogs=gp
gp-op exp=op income
income statement for manuf comp - Answers 1. beg rm inv+purchases/frieght in-end rm inv= DM USED
