ACIS Exam 3

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Author:
Kimmiey
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301849
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ACIS Exam 3
Updated:
2015-05-07 17:47:51
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ACIS
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ACIS
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  1. Price Variance
    • =AQ(AP-SP)
    • Overhead variance
  2. Quantity Variance
    • SP(AQ-SQ)
    • Usage Variance, Volume Variance, efficiency variance
  3. Cost Center
    • Responsible for costs
    • Manufacturing Facility
    • Services (Training, Accounting, General Administration)
    • Evaluation based on cost control, quantity and quality of services
  4. Investment Center
    • Responsible for revenue, costs and investment
    • Acts like separate business
    • Strategic Business Brurau
    • Evaluation based on ROI and RI
  5. Profit Center
    • Responsible for costs and revenues
    • the store
    • Evaluation based on profit
  6. Operating Assets
    • Accounts Receivable 
    • Inventory
    • Property Plant and Equipment
    • Intangible Assets
  7. Current Assets
    • Short term investments
    • Accounts receivable
    • Inventory 
    • Prepaid things
  8. Current Liabilities
    • Accounts payable
    • Notes payable
    • Short term portion of long term debts
    • Income tax payable 
    • Wages payable
    • Accurals / accured expenses
  9. Examples of non financial measure
    • Defect Rates
    • On-Time deliveries
    • Number of new products
    • Safety measures
    • Costumer satisfaction
    • -used on the balanced score card
  10. Cash flows from operating Activites
    • Current Assets and Current liabilities
    • Inflows from:
    • Sales to customers
    • Commissions and Fees received 
    • Interest and dividends received
    • Outflows from:
    • Purchase of inventory and services
    • Salaries, wages, rent and other operating expenses
    • interest on debt
    • income taxes
  11. Cash flow from investing activites
    • Long term assets
    • Inflows from:
    • Sales of long-lived assets used in the business
    • sale of investment securities (stocks and bonds)
    • collection of non trade receivables
    • Outflow for:
    • purchase of long lived assets used
    • purchase of investment securities (bonds and stocks)
    • loans to other entities
  12. Cash flows of financing activities
    • Long term liabilities and stock holders equity
    • Inflows From:
    • sales of share to owners
    • borrowing from creditors, through notes, bonds, loans, mortgages
    • Outflows for:
    • Owners in the form of dividends or other distributions
    • Owners for the shares previously sold
    • Creditors to pay back debt
  13. Long-term assets
    • Long term investments
    • Property plant and equipment
    • Furniture and fixtures
    • Vehicles
  14. Long term liabilities
    • Bonds payable
    • long term loans
    • deferred revenue
    • deferred income taxes
  15. Stockholders equity
    • Common Stock
    • Preferred stock
    • Paid In capital from treasury stock
    • Retained earnings
  16. What to subtract and add in operating activites
    • Add decreases in current assets and increase in liabilities
    • Subtract increases in assets and decreases in liabilities
  17. Indirect method vs. Direct Method
    Indirect method starts with Net income which is then adjusted for the non cash items
  18. Ex. of unit level costs
    • Indirect labor and materials
    • Energy costs for factory machinery
    • Repairs and maintenance on factory machinery
    • Depreciation on factory machinery
    • Inspection and quality control
  19. Examples of Batch Level cost
    • Cost to setup machinery to produce a batch of products
    • Wages related to moving material
    • Placing purchase orders
    • Depreciation of setup equipment
  20. Examples of Product level cost
    • Salaries of engineers
    • Depreciation of engineering equipment
    • Product development cost(testing)
    • Product design costs
    • Raw materials inventory holding costs
    • Legal fees for patents, copyrights, trademarks
  21. Examples of Facility level costs
    • Depreciation or rent on factory building salary of plant manager
    • Insurance, taxes
    • Heating the factory
    • Security
    • Landscaping
    • Overall plant maintenance
  22. Strategic planning
    long term decisions
  23. Capital budgeting
    Intermediate range planning
  24. Operations budgeting
    Short-term objectives
  25. Operating leverage
    Contribution Margin / Net income
  26. % increase in income
    Operating Leverage X % increase in sales
  27. Contribution Margin Ratio
    • Total CM / Total Sales
    • Unit CM / Unit Selling Price
  28. Breakeven point in units sold
    Fixed expenses / unit CM
  29. Breakeven point in total sales dollar
    Fixed expenses / CM Ratio
  30. Margin of safety
    (Budget Sales - Breakeven Sales) / Budgeted Sales
  31. Sales to achieve desired profit
    (Fixed costs + Desired Profit) / Contribution Margin Ratio
  32. Materials requisition form includes
    • Requisition No
    • Date, Job #
    • Department
    • Description
    • Quantity
    • UNit Cost
    • Total Cost
  33. Job Cost Sheets includes
    • Job #
    • Department
    • Item Date initiated
    • Direct Materials
    • Direct labor
    • Manufacturing Overhead
    • Total cost
    • Unit product cost
  34. Contribution Margin per minute
    CM per unit / Time required for one unit

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