ACCT 2302
Specific topics to review for Exam II
There are about 37 questions worth 3 points each, for a total
of 111 available points on the exam.
M/C question formats will include, but are not limited
to, the following:
“All are true except” statements (3
True/1False)
Select incorrect statement
regarding . . .
Which statement is true with regard
to . . .
Problems
Topics covered may include, but are not limited to, the
following:
- Review
basic concepts and how to apply them.
Also briefly review definitions.
- What
are relevant costs?
- Be
able to identify/calculate from simple scenario
- Remember
– what is relevant in one context may not be in another
- What
are sunk costs?
- Be
able to identify/calculate from simple scenario
- What
are differential costs/revenues?
- Be
able to identify/calculate from simple scenario
- Cost
Hierarchy:
- Be
able to categorize costs as unit, batch, product, facility
- Review
discussion and examples (pg. 148-50)
- Be
able to identify which level(s) are appropriate in simple decision
scenarios
- What
are opportunity costs?
- Be
able to identify/calculate from simple scenario
- What
is a cost object?
- Be
able to match to logical cost driver in simple scenario
- What
are Direct and Indirect Costs?
- Be
able to identify/calculate from simple scenario
- Why
do we allocate some costs rather than tracing to a cost object?
- Be
able to allocate costs using given (or implied) cost driver in simple
scenario
- Be
able to calculate and apply allocation rate (derive allocated costs) in
simple scenario.
- Be
able to select appropriate allocation base (cost driver) in simple
scenario
- Be
able to allocate costs using BEST cost driver in simple scenario
- What
is “Traditional” method of cost allocation?
- What
is Activity-Based-Costing?
- Be
able to differentiate between volume-based and activity-based cost drivers
- Cost
allocation problems – similar to homework exercises.