ACCT 2121 MIDTERM REAL EXAM
2026 2027 VERIFIED ANSWERS
ACTUAL UPDATED PRACTICE
QUESTIONS HIGH YIELD STUDY
GUIDE EXAM PREP MATERIAL
LATEST VERSION GRADED A+
SUCCESS REVIEW PACK
COMPLETE EDITION ACADEMIC
RESOURCE PROFESSIONAL
PREPARATION
MCQ
Q1 (1 point)
In multiproduct situations, when the sales mix shifts toward the product with the highest
contribution margin per unit, then: A) total revenues will decrease
B) breakeven quantity will increase
C) total contribution margin will decrease
D) operating income will increase
Q2 (1 point)
Hope company produces and sells 500 units of its only product per month at the selling price
of
$1,200. The variable manufacturing cost of the 500 units is $90,000 and the
variable nonmanufacturing cost totals $60,000. Total manufacturing fixed cost is
$100,000 and total nonmanufacturing fixed cost is $10,000. How would the
monthly operating income change if sales units increase by 20%.
A) operating income is increased by $90,000
B) operating income is increased by $45,000
C) operating income is increased by $120,000
D) operating income is increased by $118,000
,
,Q3 (1 point)
Which of the following statements refers to management accounting information?
A) There are some regulatory requirements for how information is collected and reported
B) The information is generally about historical firm performance
C) The audience tends to be managers, stockholders, tax auditors, and regulators
D) It affects the how performance is measured for different departments within a firm
Q4 (1 point)
More cost
pools:
A) always result in better estimates of indirect costs
B) seldom result in better estimates of indirect costs
C) are usually beneficial if the pattern of demand varies across resources D) result in lower
estimates of total indirect costs
Q5 (1 point)
Activity-based costing systems provide better product costs when they A)
employ more activity cost drivers
B) employ fewer activity cost drivers
C) identify and cost more resource consumption differences among products D)
always yield more accurate product costs than traditional cost systems
Q6 (1 point)
Which of the following is an example of an inventoriable cost for a firm’s subsidiary factory?
,
, ,
A) Depreciation on headquarter building
B) Salaries of safeguards at the distribution building
C) Depreciation on factory equipment
D) Salesmen’s salary expenses
Q7 (1 point)
Which statement is TRUE?
A) All materials costs are direct costs.
B) Because of a cost-benefit tradeoff, some costs that are traceable may be treated as
indirect
costs.
C) All fixed costs are indirect costs.
D) None of indirect costs are traceable to cost objects.
Q8 (1 point)
Suppose manufacturing overhead cost in manufacturing overhead control account is
$15,000, manufacturing overhead cost under Work-in-Process account is $10,000.
Period-end adjustment of manufacturing overhead using proration approach results
in the side change to the journal
entry of COGS account, and a change in operating income compared with write-off to
COGS approach.
A) Credit; Smaller
B) Credit; Larger
C) Debit; Smaller
D) Debit; Larger
The following question applies to Q9 and Q10.
Olympia Corp produces two types of boards: a standard and a deluxe model. The following
activity and cost information has been compiled.
Product Number of Number Number of
Setups of total Direct Labor
Componen Hours
ts
Standard 20 10 375
Deluxe 30 15 225
Overhead costs $25,000 $35,000
Q9 (1 point)
Assume a traditional costing system applies the $60,000 of overhead costs based on
direct labor hours. What is the total amount of overhead costs assigned to the Deluxe
model? A) $20,000
B) $22,500
C) $25,000
D) $35,250
,
2026 2027 VERIFIED ANSWERS
ACTUAL UPDATED PRACTICE
QUESTIONS HIGH YIELD STUDY
GUIDE EXAM PREP MATERIAL
LATEST VERSION GRADED A+
SUCCESS REVIEW PACK
COMPLETE EDITION ACADEMIC
RESOURCE PROFESSIONAL
PREPARATION
MCQ
Q1 (1 point)
In multiproduct situations, when the sales mix shifts toward the product with the highest
contribution margin per unit, then: A) total revenues will decrease
B) breakeven quantity will increase
C) total contribution margin will decrease
D) operating income will increase
Q2 (1 point)
Hope company produces and sells 500 units of its only product per month at the selling price
of
$1,200. The variable manufacturing cost of the 500 units is $90,000 and the
variable nonmanufacturing cost totals $60,000. Total manufacturing fixed cost is
$100,000 and total nonmanufacturing fixed cost is $10,000. How would the
monthly operating income change if sales units increase by 20%.
A) operating income is increased by $90,000
B) operating income is increased by $45,000
C) operating income is increased by $120,000
D) operating income is increased by $118,000
,
,Q3 (1 point)
Which of the following statements refers to management accounting information?
A) There are some regulatory requirements for how information is collected and reported
B) The information is generally about historical firm performance
C) The audience tends to be managers, stockholders, tax auditors, and regulators
D) It affects the how performance is measured for different departments within a firm
Q4 (1 point)
More cost
pools:
A) always result in better estimates of indirect costs
B) seldom result in better estimates of indirect costs
C) are usually beneficial if the pattern of demand varies across resources D) result in lower
estimates of total indirect costs
Q5 (1 point)
Activity-based costing systems provide better product costs when they A)
employ more activity cost drivers
B) employ fewer activity cost drivers
C) identify and cost more resource consumption differences among products D)
always yield more accurate product costs than traditional cost systems
Q6 (1 point)
Which of the following is an example of an inventoriable cost for a firm’s subsidiary factory?
,
, ,
A) Depreciation on headquarter building
B) Salaries of safeguards at the distribution building
C) Depreciation on factory equipment
D) Salesmen’s salary expenses
Q7 (1 point)
Which statement is TRUE?
A) All materials costs are direct costs.
B) Because of a cost-benefit tradeoff, some costs that are traceable may be treated as
indirect
costs.
C) All fixed costs are indirect costs.
D) None of indirect costs are traceable to cost objects.
Q8 (1 point)
Suppose manufacturing overhead cost in manufacturing overhead control account is
$15,000, manufacturing overhead cost under Work-in-Process account is $10,000.
Period-end adjustment of manufacturing overhead using proration approach results
in the side change to the journal
entry of COGS account, and a change in operating income compared with write-off to
COGS approach.
A) Credit; Smaller
B) Credit; Larger
C) Debit; Smaller
D) Debit; Larger
The following question applies to Q9 and Q10.
Olympia Corp produces two types of boards: a standard and a deluxe model. The following
activity and cost information has been compiled.
Product Number of Number Number of
Setups of total Direct Labor
Componen Hours
ts
Standard 20 10 375
Deluxe 30 15 225
Overhead costs $25,000 $35,000
Q9 (1 point)
Assume a traditional costing system applies the $60,000 of overhead costs based on
direct labor hours. What is the total amount of overhead costs assigned to the Deluxe
model? A) $20,000
B) $22,500
C) $25,000
D) $35,250
,
