Muskingum College - Center for Advancement and Learning (CAL)
 Muskingum College - Center for Advancement and Learning (CAL)
Muskingum College - Center for Advancement and Learning (CAL)
 

Study Guide for Managerial Accounting

Terms

  • Relevant Cost/Revenue
  • Avoidable Cost
  • Sunk Cost
  • Opportunity Cost
  • Depreciation Tax Shield
  • Cost of Capital
  • Interpolation
  • After-tax Cost
  • After-tax Benefit
  • Accelerated Cost Recovery System
  • Profitability Index
  • Capital Budgeting

Concepts

  • What situation and qualitative factors must be considered in make or buy decisions?
  • What situation and qualitative factors must be considered in add or drop product decisions?
  • What is the situation of scarce resources?
  • What is the method of net present value?
  • Compare NPV and TARR, indicating which method is most useful and why.
  • What are the three methods of ranking investment proposals?

Problems

  • Compute the Net Present Value
  • Compute TARR with Even and Uneven Cash Flows
  • Compute the Payback Period
  • Analyze the sell or process further problem