Start studying cost accounting chapter 3 learn vocabulary, terms, and more with flashcards, games, and other study tools. Chapter 3: exercises short answer questions, exercises, and problems short-answer questions define process costing and describe the types of companies that use process costing how does a process cost system differ from a job costing system would a lumber mill use process or job costing what is meant by the term equivalent units. Cost-volume-profit (cvp) analysis examines the behavior of total revenues, total costs, and operating income as changes occur in the units sold, selling price, variable cost per unit, or fixed costs of a product. 3-7 if actual manufacturing overhead cost is applied to jobs, then the company must wait until the end of the accounting period to apply overhead and to cost jobs if the company computes the actual overhead rates more frequently to get around this problem, the rates may fluctuate widely. Davis and davis, managerial accounting ndinstructor’s manual, 2 ed 3-2 assignment classification by learning objective learning objective exercises problems cases 1 calculate the breakeven point in units and sales dollars chapter 3 – cost-volume-profit analysis and pricing decisions 3-7 chapter summary unit 31.
Chapter 3 appendix a – process costing (fifo method) another acceptable method for determining unit cost under process costing is the first-in, first-out (fifo) cost method under the fifo method, we assume any units that were not completed last period (beginning work in process) are finished before anything else is started. Chapter cost-volume-profit analysis and pricing decisions unit summaries unit 31 – breakeven analysis using universal sports exchange’s results from 2014, the unit presents the breakeven point calculation first using the profit equation (sales – vc – fc = oi) and then using the formula.
Ticket sales ($24 525 attendees) variable cost of dinner ($12 525 attendees) variable invitations and paperwork ($1 525) contribution margin fixed cost of dinner fixed cost of invitations and paperwork operating profit (loss) - $12050 attendees) variable cost of dinner ($12 1775 $9050 attendees) variable invitations and paperwork ($1 197 5 $133600 $6050) $2547 197 5 $1000 0 $1.
Problems - chapter 3: income measurement financial accounting textbook (chapters 1-16 including problem sets) purchase the 2018-2019 edition now for $8995.
The chapter concludes by comparing the accrual basis and cash basis of accounting generally accepted accounting principles (gaap) dictate the accrual basis, but many small businesses may nonetheless find it more cost-effective to utilize the much simpler cash basis. 3-39 calculate markups and cost-plus prices 6 m 20-25 ap, e a dm ps da 3-40 calculate markups and cost-plus prices 6, 7 e 15-20 ap, c a dm ps da davis and davis, managerial accounting ndinstructor’s manual , 2 ed.
5 00 do the same procedure at question 1 we have 000 / $23= 8500 total fix cost $60 $37 $0 $37 $115000 40 00 the same procedure we have followings cmu = $60 5 00 $195000 breakeven unit = fc / cmu = 180000 units breakeven revenues = 10000 units selling price = 10000 3breakeven revenues. Accounting 245 – cost accounting chapter 3 quiz - 10 points name: _____ true/false questions 1 johnson company sells a single product for $125 the variable expense per unit is $80 and the fixed expense per unit is $30 at the current level of sales.