What This Document Is
This document is a cheat sheet designed to assist students in preparing for Exam 2 in ACC 230, Survey of Accounting Concepts at Michigan State University. It focuses on applying cost accounting principles to make or buy decisions and evaluating special order opportunities. The sheet provides a condensed review of key considerations and calculations related to these topics.
Why This Document Matters
This cheat sheet is valuable for students who are reviewing the material covered in Homework 4 (Make or Buy) and Homework 5 (Special Orders) in preparation for the exam. It’s intended as a quick reference guide to help recall important formulas and decision-making frameworks. Students facing time constraints or needing a consolidated review will find this particularly useful. It’s best used *after* completing the homework and understanding the underlying concepts.
Common Limitations or Challenges
This cheat sheet is not a substitute for a thorough understanding of the course material. It provides a summarized overview, but does not offer detailed explanations of the accounting principles involved. It won’t teach you *how* to solve these problems, only *what* to consider. Students should still be prepared to apply these concepts independently on the exam.
What This Document Provides
The cheat sheet includes:
* Key variables to consider in make-or-buy decisions (variable manufacturing costs, non-variable manufacturing costs, bike amounts).
* A worked example demonstrating the calculation of make versus buy costs for King City Specialty Bikes.
* A breakdown of the contribution margin calculation for a special order scenario.
* Relevant cost data for Preston Concrete’s special order evaluation.
This preview does *not* include the complete solutions to the homework problems, detailed explanations of the accounting principles, or all the calculations performed in the full document. It is a condensed reference, not a comprehensive guide.