ACC 561: Sample Questions with Answers – Final Exam, Week 1-6

Summary

Budgeting, performance management and financial statements are covered. Students get multiple-choice questions based on accounting concepts and practices.

Budgeting and Decision Making

Budgets and performance reports support management decision-making. The role of ethics in accounting is considered. Students identify reasons for budget variances.

Accounting and Financial Statements

Financial accounting concepts are applied. Conventions affect financial reporting. Relationships between elements of financial statements are explained.

Cost Behavior in Accounting

Cost behavior affects cost drivers and management decisions. Cost-volume-profit relationships predict the effects of changes in sales or costs. Methods of measuring cost functions compare.

Cost Allocation

Methods of cost allocation are explained. Factory overhead is applied to products. Variable and absorption costing are compared.

Key terms

Budget variance

The difference between budgeted and actual amounts.

Statement of Ethical Professional Practice

A set of guidelines for ethical behavior by management accountants.

Cost drivers

Factors that cause changes in costs.

Contribution margin

Sales revenue minus variable costs per unit.

Cost allocation

The process of assigning costs to different departments or products.

Control systems

Systems used by managers to achieve organizational goals.

Questions this document helps with

• How do budgets support management decision-making?
• What are the main conventions of financial accounting?
• How are costs allocated to different departments or products?

Summary written with AI from the document's text.