SUNY Geneseo

Accounting 103 Fall 2014

Final Exam Information
Disclaimer: You are responsible for information in the chapters and what we discussed in class. This
review sheet does not indicate what material is on the exam. It is intended only as a study
guide.
Exam Date, Time, and Location: Friday December 14, Newton 204, 7:00PM to 10:00PM THE
FINAL EXAM IS IMPORTANT. IT WILL IMPACT YOUR FINAL GRADE. IF YOU DO
NOT TAKE THE EXAM AT THIS TIME YOU WILL RECEIVE WITH A 0 FOR THE
FINAL AND YOUR AVERAGE WILL BE DETERMINED ACCORDINGLY. I MAY GIVE
YOU AN I VERSUS YOUR AVERAGE BASED PURELY ON MY ASSESSMENT OF YOUR
CIRCUMSTANCES AND ABILITY TO SUCCESSFULLY COMPLETE THE COURSE. IF
YOU RECEIVE AN I YOU MUST CONTACT ME WHEN YOU RETURN IN JANUARY TO
SCHEDULE A MAKEUP FOR SOMETIME IN FEBRUARY. THE TYPE OF EXAM AND
TIME OF THE EXAM WILL BE AT MY DESCRETION AND CONVENIENCE. IT WILL
BE YOUR RESPONSIBILITY TO MAKE UP THE EXAM BEFORE THE I TURNS TO AN
E.
Review Session: Wednesday, December 10, at 8:00 PM.
Exam Coverage: Chapters 7, 8, 9, 10, 11
My availability: You may contact me via cell phone until 11:00 PM daily. I will hold office hours the
Wednesday and Thursday afternoon before finals from 12:00 until 1:30 PM.
Format and Point Value: 100 points. As with the midterm, the format of the exam will be 25 multiple
choice and short answer/calculation questions. My approach to exams is to determine if you
understand the concepts, if you can apply the concepts, and if you can evaluate the concepts. The
exam is designed to be completed in 1.5 -2 hours although you will have the entire 3 hour final exam
period.
Other: 8 X 11 sheet of paper. Anything you want on both sides. Standard calculator or financial
calculator. No phone calculators or computers. Review mycourses, homework, assessment and
submission for credit problems on Connect and the class notes. In Connect there are also practice questions
in the Library Section of the Website Bring your student ID as I have the right to check IDs before
accepting your test.
Chapter 7:
1. What is activity based costing (ABC) and how does it differ from traditional costing?
2. What are cost drivers? Cost pools?
3. What is the advantage of ABC? Limitations?
4. When is ABC applicable? What is the role of cost drivers in ABC?
5. How is ABC applied to cost objects?
6. How can ABC be used to improve a firms profitability?
7. What is Activity Based Management?
8. What does ABM attempt at accomplish?
9. Can you use ABC to determine the cost or margin of a product or customer?
10. Why are some costs not allocated to cost objects in an ABC system?

Chapter 8:
1. What is a budget and what is its relationship to strategic planning?
2. Why is budgeting important?
3. What are the components of a budget?
4. What are the characteristics of a good budget?
5. What is the budgeting process?
6. What budget slack?
7. What is goal congruence in budgeting?
8. Can you make calculations of selected schedules and budgeted account balances
Chapter 9:
1. What is flexible budgeting and how does it differ from traditional (chapter 8 planning budget)
budgeting.
2. Can you calculate a flexible budget?
3. What are budget variances?
4. Can you calculate activity variances and interpret what they mean?
5. Can you calculate revenue and spending variances and interpret what they mean?
Chapter 10:
1. What is a standard cost and what are the advantages and disadvantages of standard costs?
2. How are standards established?
3. Can you calculate direct labor, direct material and variable overhead rate (price) and efficiency
(usage) variances?
4. What impact do the variances have on the income statement?
5. What does a favorable or unfavorable variance mean?
6. Can you evaluate and understand the causes of variances?
Chapter 11
1. What are cost centers, revenue centers, profit centers, and investment centers and how to measure
the performance of each?
2. What is the difference between centralized and decentralized organizations?
3. What is Return on Investment and what are its major components?
4. How is ROI calculated?
5. What is Residual Income and how is it calculated?
6. What are the advantages and disadvantages of ROI?
7. What are the advantages and disadvantages of Residual Income?
8. How can ROI and Residual Income affect investment decisions?
9. What are cycle time, throughput time, manufacturing cycle efficiency, delivery cycle time, how
are they calculated and what do they indicate?
10. What are value added and non-value added activities?
11. What is the balance scorecard? What are the major components of balanced scorecard and what
does it tell you about your business/
12. How do you determine the measure in balance scorecard?