Chapter 1Chapter 2Chapter 3Chapter 6Chapter 9Chapter 11Final Exam study guide!Mix of MC and Working problems. 200 Points.Chapter 1Make sure to know the theory/meaning/description for all the followings:- Cost object- Direct Cost- Indirect Cost- Manufacturing Costs: Direct Material; Direct Labor; Manufacturing Overhead- Nonmanufacturing Costs: Selling and admin costs OR Period Cost- Product Cost (inventoriable costs)- Cost Behavior in details (how they react to change in activity base): Variable Cost (Total and per unit); Fixed Cost (Total and per unit); Mixed Costs (Total and per unit) and categorizing a cost into these categories.- Difference between Committed and Discretionary Costs- Differential Costs- Incremental Costs- Sunk costs- Opportunity costs- Prime Costs; Conversion Costs- Contribution Income Statement- Traditional Income Statement (absorption Income Statement)- Which income statement is helpful for a company’s manager in making decisions?There will be math question for Cost Classification and Cost Behavior. Chapter 2Make sure to know the theory/meaning/description for all the followings:- Absorption Costing- Job-Order Costing; few examples of companies using Job order costing- Manufacturing Overhead- Formula for Predetermined Overhead Rate- Applied Manufacturing Overhead- Formula of Product Cost in Normal Cost System- Cost Driver; different Cost drivers; - What is underapplied Overhead? What is Overapplied Overhead?There will be Math questions for: ( EX 2-9 on Pg 92; Ex 2-12 pg 93) 1. Calculation of Predetermined Overhead Rate (Only Plantwide) 2. Calculation of Applied Overhead 3. Calculation of Product Cost or Job Cost in Normal Costing SystemChapter 3Make sure to know the theory/meaning/description for all the followings- Different Inventory Account for a manufacturing company- The Flow of Cost in manufacturing company- All the Journal Entries showing the Product Cost Flow- Cost of Goods Manufactured- Cost of Goods Sold- Computing underapplied or Overapplied overhead- Disposition of Underapplied or Overapplied Overhead Balance in COGSNo Math Question!!Chapter 6Make sure to know the theory/meaning/description for all the followings- What is CVP Analysis?- What is Contribution Margin (Total or Per unit)- What is Contribution Margin Ratio?- What is Break-even point? All the important facts about the BE Point!!- What is Variable Expense Ratio?- Effect of changes of Selling Price, Sales Volume, Variable Cost, and Fixed Cost on Operating Income - Effect of changes in Selling Price per unit, Variable cost per unit, and Total Fixed Cost on Contribution margin, CM%, and Break-even - What is Margin of Safety?- Operating leverageThere will be math questions for: CVP analysis; Break-even points (One Product) and Target Profit sales unit and dollar. Look at the Review Problem on pg 251-254. No questionfor mixed sales!Chapter 9Make sure to know the theory/meaning/description for all the followings- What is a Flexible Budget? How is it different than Static budget?- What is Revenue Variance and what is the cause of it?- What is Spending Variance? What causes it?- What is Favorable and Unfavorable Variance?- What is a quantity standard? What is a price standard? What is Standard Cost?- What is Price (Rate) Variance? When can it be Favorable? When can it be Unfavorable?- What is the Quantity (Efficiency) Variance? When can it be Favorable or Unfavorable?- What is Std Quantity Allowed? What is Std Hours Allowed? How do we calculate it?- Responsible Department or manager for Material Price Variance? Labor Rate Variance?- Responsible Department or manager for Material Qty Variance? Labor Efficiency Variance?For Math Question, there will be a question for Revenue and Spending Variance. Practice with the Review Problem on page 421-424.Also Exercise 9-13 page 433 to practice for DM and DL Variances.Chapter 11Make sure to know the theory/meaning/description for all the followings- Relevant and Irrelevant Costs- Avoidable and Unavoidable Costs- Is Incremental costs Relevant or Irrelevant? How about Opportunity cost? How about Sunk Cost?- What are the steps or concerns being asked when Dropping Product lines? (Helpful Hint on pg 519)!- What is a Traceable Fixed Cost? What is Common Fixed Cost?- What is Segment margin? How to calculate it.- What are the concerns with Special Order?- When to process further or sell as is? Practice with Question: Ex 11-2; EX 11-3; Ex 11-4 on pages