Accounting 3200 Midterm Exam Essay - 2288 Words

Accounting 3200 Midterm Exam, Term 3 - Chapters 1 - 5 and 17 1,7, Questions #1, 6 and 9 are SIX points each. Questions #2 and 7 are FIVE points each. Question #3 is TEN points. Questions #4 and 5 are EIGHT points each. Question #8 is TWELVE points. Question #10 is SIXTEEN points. Question #11 is EIGHTEEN points. BE SURE TO SHOW ALL SUPPORTING COMPUTATIONS. NO COMPUTATIONS = NO POINTS IF ANSWER IS WRONG. Version: HMT03midon 1) Describe management accounting and financial accounting. Managerial accounting is more for internal users. Internal users like CEO, CFO, Managers want accounting information for special purpose, the accounting information can be very detail, It is for future decisions. It doesn’t have to be written by GAAP. It†¦show more content†¦A 15% discount is given when two tires are purchased at one time. During the busy months, selling prices per tire average $60. The president of Auto Tires is somewhat displeased with the companys management accounting system because the cost behavior patterns displayed by the monthly breakeven charts are inconsistent; the busy months charts are different from the other months of the year. The president is never sure if the company has a satisfactory margin of safety or if it is just above the breakeven point. Required: a. What is wrong with the accountants computations? a.The Acc system contains some basic assumptions about CVP model that do not hold for Auto Tire. The CVP model needs cost revenue to be linear. In busy season, Auto Tires has costs and revenues that work inversely than during Not-busy-seasons. The revenue line goes down with the average selling price per tire falling from $75 to $60. The variable costs line possibly goes up with the extra hour workers being added to the work force. b. How can the information be presented in a better format for the president? B.The CPA should be wanting to present two information concerning the revenue and cost behaviors of the Auto tire. one for the busy season and one for not busy seasons. It will show that while the breakeven during the busy seasons. marginal income goes up because of increased sales 5) Alex Miller, Inc., sells car batteries to service stations for an average of $30 each. TheShow MoreRelated_x000C_Introduction to Statistics and Data Analysis355457 Words   |  1422 Pagesundergraduate statistics education. She is a Fellow of the American Statistical Association and an elected member of the International Statistics Institute. Roxy has recently completed ï ¬ ve years as the Chief Reader for the Advanced Placement Statistics Exam and currently chairs the American Statistical Association’s Joint Committee with the National Council of Teachers of Mathematics on Curriculum in Statistics and Probability for Grades K–12. In addition to her texts in introductory statistics, Roxy