Study Guide Midterm #2
Study Guide Midterm #2 Acc 204
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This 0 page Study Guide was uploaded by Brandon Sangster on Thursday November 12, 2015. The Study Guide belongs to Acc 204 at Pace University taught by Picheng Lee in Fall 2015. Since its upload, it has received 48 views. For similar materials see Financial Accounting in Business at Pace University.
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Date Created: 11/12/15
Study Guide Midterm 2 ACC 204 Chapters 8 9 and 10 Chapter 8 Master Budgeting Kev Terms and De nitions 0 Budget It is a detailed quantitative plan for acquiring and using financial and other resources over a specified forthcoming time period 0 Budgeting The act of preparing a budget 0 Budgetarv Control It s the use of budgets to control an organizational activity 0 Responsibilitv Accounting Managers that are held responsible for the items that the manager can control 0 Budget Period Continuous budget that roll forward from one month to the next 0 Zero Based Budgeting Requires managers to justify all budget expenditures 0 Sales Budget A budget showing the number of units sales price and total sales for each quarter or month 0 Master Budget It is a number of separate but interdependent budgets that formally lay out the company s sales production and financial goals 0 Production Budget A budget used to show the number of units needed or sold in finished goods 0 Direct Materials Budget Has a schedule of expected cash disbursements for purchases of materials 0 Cash Budget 0 Direct Labor Budget 0 Cash Collections Examples Schedules 18 on the different types of budgets and how they are performed Pg 352361 all on the Connect textbook Also look at Questions 1 and 2 in the 2nd midterm review worksheet that is provided on Blackboard under course documents Chapter 9 Flexible Performance and Performance Analysis 0 Performance Report Combines the Activity Revenue and Spending variances 0 Favorable It is when the Actual budget is either less on cost than the exible or when the revenue for actual is greater than exible Also it applies to the exible being lower on cost than the planned and the revenue for the exible to be greater than the planned budget 0 Unfavorable It is when the actual budget spends more than what the exible predicted or when the actual brings in less revenue than the exible It also pertains to the exible budget having more expenses than the planned or when the planned budget has more revenue than the exible 0 Revenue Variance It is made up of the Actual Flexible budget Revenues combined together to create this variance 0 Spending Variance Made up of the Actual and Flexible budget costs 0 Real Performance It s when you compare the Flexible and Actual results having the same number of quantity apples to apples to get a sense of how a company is performing and shows if there are any defects Examples Exhibit 92 to 99 Pg394405 on planning budget actual results performance reports and activity variances all in the Connect textbook In the 2nd midterm review questions 6 and 7 relate to this chapter and should be looked at Chapter 10 Standard Costs and Variances 0 Price Standards Specifies how much should be paid for each unit of the input 0 Quantitv Standards Specifies how much of an input should be used to make a product or provide a service Ex Firestone Sears McDonalds Hospitals 0 Standard Rate Per Hour A single rate of how much is supposed to be paid 0 Variance Analvsis It explains the price difference between actual and standard price and actual and standard quantity Materials Variances Labor Variances Variable Manufacturing Overhead Variance Standard Hours Per Unit Activitv Variance Spending Variance Examples Exhibit 101 102 104 106 108 and 1010 Pg 430431434437440442 that goes over the Direct material Direct Labor Variable manufacturing overhead and standard cost variances all in the connect textbook In the 2nd midterm review questions 34 and 5 relate to chapter 10 and really should be looked at Note The 2nd Midterm Review is vital to look at and review while your studying being that the way the test is formatted the problems are going to be just like the review only with different numbers so if anything else look at and do those problems first and then look at the textbook material to enrich your overall understanding of the material so that when the test come you will be on the top of your game
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