(SNHU) ACC 202 Managerial Accounting - Midterm Readiness Exam Guide .

ACC 202



Managerial Accounting




MIDTERM READINESS EXAM
GUIDE
Q&S




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, 1. Which costing method allocates fixed manufacturing
overhead to individual units produced?
- A) Variable costing
- B) Absorption costing
- C) Direct costing
- D) Activity-based costing
Correct Answer: B) Absorption costing
Rationale: Absorption costing assigns all manufacturing
costs, both fixed and variable, to the product, thus fixed
overhead is included in the unit cost.

2. What is the primary purpose of a contribution margin
analysis?
- A) To evaluate total cash flow
- B) To determine break-even point
- C) To assess operating efficiency
- D) To calculate tax liabilities
Correct Answer: B) To determine break-even point
Rationale: Contribution margin analysis helps assess
how sales affect profitability, particularly in determining the
break-even point.

3. In which of the following scenarios does the use of
variable costing provide the most relevant information for
decision-making?
- A) When evaluating the overall company profitability
- B) When setting sales prices
- C) When considering product discontinuation decisions
- D) When performing budget variance analysis
Correct Answer: C) When considering product
discontinuation decisions
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