ACCY 200 Exam 2 UIUC #1 Questions with correct answers
(Chapter 12) Managerial accounting, as opposed to financial accounting, is
primarily concerned with:
A) The financial condition of the organization as a whole.
B) Meeting the requirements of generally accepted accounting principles.
C) Emphasizing the future.
D) Providing data for investors and creditors.
E) Determining exact results. - ✔✔C.) Emphasizing the future.
(Chapter 12) Activities included in a generally accepted definition of the
management process include:
A) Planning, organizing, controlling.
B) Planning, operating, reporting.
C) Preparing, operating, creating.
D) Preparing, organizing, converting.
E) None of the above. - ✔✔A) Planning, organizing, controlling.
(Chapter 12) Contribution margin can be expressed as:
A) Sales minus variable expenses.
B) Sales minus cost of goods sold.
C) Sales minus fixed expenses.
D) The level of sales required to cover variable expenses.
E) The level of sales required to cover fixed and variable expenses. - ✔✔A) Sales
minus variable expenses.
,(Chapter 12) The contribution margin income statement:
A) Reports expenses based upon cost behavior pattern rather than cost function.
B) Unitizes fixed costs.
C) Shows contribution margin rather than operating income as the bottom line.
D) Is sometimes used for financial reporting purposes.
E) None of the above. - ✔✔A) Reports expenses based upon cost behavior
pattern rather than cost function.
(Chapter 12) The relevant range concept refers to:
A) A firm's range of profitability.
B) A firm's range of sales.
C) A firm's range of rates of return.
D) A firm's range of activity.
E) A firm's range of expenses. - ✔✔D) A firm's range of activity.
(Chapter 12) Cost behavior refers to:
A) Costs that are both good and bad.
B) Costs that are variable or fixed.
C) Costs that decrease at a quicker rate than others.
D) Costs that increase at a quicker rate than others.
E) None of the above. - ✔✔B) Costs that are variable or fixed.
(Chapter 12) Which of the following is the correct calculation for the contribution
margin ratio?
, A) Revenue divided by variable costs.
B) Revenue divided by contribution margin.
C) Contribution margin divided by variable costs.
D) Contribution margin divided by fixed costs.
E) Contribution margin divided by revenue. - ✔✔E) Contribution margin divided
by revenue.
(Chapter 12) Cost-volume-profit analysis assumes fixed costs:
A) Remains constant on a per unit basis as activity changes.
B) Remains constant from one period to the next.
C) Increases in total as activity increases.
D) Remains constant as activity changes.
E) None of the above. - ✔✔D) Remains constant as activity changes.
(Chapter 12) At the break-even point:
A) Fixed cost is always less than the contribution margin.
B) Fixed cost is always equal to the contribution margin.
C) Fixed cost is always more than the contribution margin.
D) Fixed cost is always more than variable cost.
E) Fixed cost is always equal to variable cost. - ✔✔B.) Fixed cost is always equal to
the contribution margin.
(Chapter 12) Which of the following will increase a company's break-even point?
A) Increasing variable cost per unit.
B) Decreasing variable cost per unit.
(Chapter 12) Managerial accounting, as opposed to financial accounting, is
primarily concerned with:
A) The financial condition of the organization as a whole.
B) Meeting the requirements of generally accepted accounting principles.
C) Emphasizing the future.
D) Providing data for investors and creditors.
E) Determining exact results. - ✔✔C.) Emphasizing the future.
(Chapter 12) Activities included in a generally accepted definition of the
management process include:
A) Planning, organizing, controlling.
B) Planning, operating, reporting.
C) Preparing, operating, creating.
D) Preparing, organizing, converting.
E) None of the above. - ✔✔A) Planning, organizing, controlling.
(Chapter 12) Contribution margin can be expressed as:
A) Sales minus variable expenses.
B) Sales minus cost of goods sold.
C) Sales minus fixed expenses.
D) The level of sales required to cover variable expenses.
E) The level of sales required to cover fixed and variable expenses. - ✔✔A) Sales
minus variable expenses.
,(Chapter 12) The contribution margin income statement:
A) Reports expenses based upon cost behavior pattern rather than cost function.
B) Unitizes fixed costs.
C) Shows contribution margin rather than operating income as the bottom line.
D) Is sometimes used for financial reporting purposes.
E) None of the above. - ✔✔A) Reports expenses based upon cost behavior
pattern rather than cost function.
(Chapter 12) The relevant range concept refers to:
A) A firm's range of profitability.
B) A firm's range of sales.
C) A firm's range of rates of return.
D) A firm's range of activity.
E) A firm's range of expenses. - ✔✔D) A firm's range of activity.
(Chapter 12) Cost behavior refers to:
A) Costs that are both good and bad.
B) Costs that are variable or fixed.
C) Costs that decrease at a quicker rate than others.
D) Costs that increase at a quicker rate than others.
E) None of the above. - ✔✔B) Costs that are variable or fixed.
(Chapter 12) Which of the following is the correct calculation for the contribution
margin ratio?
, A) Revenue divided by variable costs.
B) Revenue divided by contribution margin.
C) Contribution margin divided by variable costs.
D) Contribution margin divided by fixed costs.
E) Contribution margin divided by revenue. - ✔✔E) Contribution margin divided
by revenue.
(Chapter 12) Cost-volume-profit analysis assumes fixed costs:
A) Remains constant on a per unit basis as activity changes.
B) Remains constant from one period to the next.
C) Increases in total as activity increases.
D) Remains constant as activity changes.
E) None of the above. - ✔✔D) Remains constant as activity changes.
(Chapter 12) At the break-even point:
A) Fixed cost is always less than the contribution margin.
B) Fixed cost is always equal to the contribution margin.
C) Fixed cost is always more than the contribution margin.
D) Fixed cost is always more than variable cost.
E) Fixed cost is always equal to variable cost. - ✔✔B.) Fixed cost is always equal to
the contribution margin.
(Chapter 12) Which of the following will increase a company's break-even point?
A) Increasing variable cost per unit.
B) Decreasing variable cost per unit.
