ACC 202 Managerial Accounting Milestone 3 | Score 12/13 | Southern New Hampshire University

UNIT 3 — MILESTONE 3

12/13

12/ 13 <O that’s 92% ‘ RETAKE ‘


(A 12 questions were answered correctly.
1 question was answered incorrectly.



T @
Sighing a lease for a new retail space is classified as which type
of cost?




Mixed Cost
O


O Step P Cost




Variable Cost
O


Fixed Cost
© O


RATIONALE

A lease is a fixed cost, since the cost remains the same no
matter how many units are sold. Fixed costs remain constant in
the total dollar amount over the relevant range.



CONCEPT
— Cost Behavior

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, UNIT 3 — MILESTONE 3

12/13

statement of cash flows?




O Financing g outflow




Investing outflow
O


O Financing g inflow




Q ° Operating
P g outflow




RATIONALE

A company would reflect cash payments for taxes as an
operating outflow on the statement of cash flows. Making a
payment consists of an outflow of cash and the payment of
taxes occurs as a result of normal operations.



CONCEPT
— Introduction to the Statement of Cash Flows


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3 @
Rand Company has sales of $200,000, variable expenses of
$90,000, and fixed costs of $60,000.

What is Rand’s operating leverage and what does that mean to
Rand Company?