ACCT 526 Final Exam Mastery 2026 |
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,ACCT 526 FINAL EXAM
1. Overhead costs are assigned to production using an overhead
application rate, whereas no such application rate is used to assign
the costs of direct materials and direct labor to production. The
reason for this difference in procedures is that:
A. Overhead is a direct cost
B. Overhead is an indirect cost which cannot be traced easily and
directly to specific units of product
C. Direct materials and labor are harder to trace
D. Overhead is not a real cost
Correct Answer: B
2. An advantage of using regression analysis over the high-low and
scattergraph methods is that:
A. Regression analysis is simpler
B. Regression analysis is a more precise approach than the high-low or
scattergraph methods
C. Regression requires no data
D. Regression ignores fixed costs
Correct Answer: B
3. An example of a discretionary fixed cost is:
A. Rent
B. Property taxes
C. Management training
D. Depreciation
Correct Answer: C
,4. Tucker, Inc. collected the following production data for the past
month: Units Produced: 1,600, 1,300, 1,500, 1,100; Total
Cost: 22,000,19,000, 22,500,16,500. If the high-low method is used,
what is the monthly total cost equation?
A. Total cost = 4,400 +11/unit
B. Total cost = 5,000 +10/unit
C. Total cost = 3,000 +12/unit
D. Total cost = 4,000 +13/unit
Correct Answer: A
5. Roddy Company has the following cost formulas for overhead.
Based on these cost formulas, the total overhead cost at 600 machine
hours is expected to be:
A. 5,000𝐵.∗∗5,340**
C. 5,500𝐷.6,000
Correct Answer: B
6. When comparing a traditional income statement to a contribution
margin income statement:
A. Net income differs
B. Net income will always be identical on both
C. Only variable costs change
D. Fixed costs are ignored
Correct Answer: B
7. Kendra Corporation sells 100,000 wrenches
for 12𝑎𝑢𝑛𝑖𝑡. 𝐹𝑖𝑥𝑒𝑑𝑐𝑜𝑠𝑡𝑠𝑎𝑟𝑒300,000, and net income
is
200,000. 𝑊ℎ𝑎𝑡𝑠ℎ𝑜𝑢𝑙𝑑𝑏𝑒𝑟𝑒𝑝𝑜𝑟𝑡𝑒𝑑𝑎𝑠𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒𝑒𝑥𝑝𝑒𝑛𝑠𝑒𝑠𝑖𝑛𝑡ℎ𝑒𝐶𝑉𝑃𝑖𝑛𝑐𝑜𝑚𝑒𝑠𝑡𝑎𝑡𝑒𝑚
∗ 𝐴.500,000
, B. 600,000𝐶.∗∗700,000
D. $800,000
Correct Answer: C
8. Snyder Corporation, which produces and sells a single product,
recently experienced an increase in fixed costs relating to
depreciation on new equipment. This increase will affect:
A. Contribution margin ratio
B. Variable cost per unit
C. Break-even point
D. Sales price
Correct Answer: C
9. The following is last month's contribution format (CVP) income
statement: Sales (10,000
units) 1,200,000; 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒𝑒𝑥𝑝𝑒𝑛𝑠𝑒𝑠800,000; Contribution
margin 400,000; 𝐹𝑖𝑥𝑒𝑑𝑒𝑥𝑝𝑒𝑛𝑠𝑒𝑠240,000; Net income $160,000. What
is the company's break-even sales in units?
A. 5,000 units
B. 6,000 units
C. 7,000 units
D. 8,000 units
Correct Answer: B
10. A 45% contribution margin ratio means that:
A. 45% of revenue is variable cost
B. 45% of the company's revenue is available to cover fixed costs and
to contribute toward operating income
C. 45% of revenue is net income
Actual Questions + Detailed Answers |
Top Score Guaranteed
THIS EXAM INCLUDES:
ACCT 526 Final Exam
Actual Questions + Detailed Answers
New 2026
Assurred Pass
,ACCT 526 FINAL EXAM
1. Overhead costs are assigned to production using an overhead
application rate, whereas no such application rate is used to assign
the costs of direct materials and direct labor to production. The
reason for this difference in procedures is that:
A. Overhead is a direct cost
B. Overhead is an indirect cost which cannot be traced easily and
directly to specific units of product
C. Direct materials and labor are harder to trace
D. Overhead is not a real cost
Correct Answer: B
2. An advantage of using regression analysis over the high-low and
scattergraph methods is that:
A. Regression analysis is simpler
B. Regression analysis is a more precise approach than the high-low or
scattergraph methods
C. Regression requires no data
D. Regression ignores fixed costs
Correct Answer: B
3. An example of a discretionary fixed cost is:
A. Rent
B. Property taxes
C. Management training
D. Depreciation
Correct Answer: C
,4. Tucker, Inc. collected the following production data for the past
month: Units Produced: 1,600, 1,300, 1,500, 1,100; Total
Cost: 22,000,19,000, 22,500,16,500. If the high-low method is used,
what is the monthly total cost equation?
A. Total cost = 4,400 +11/unit
B. Total cost = 5,000 +10/unit
C. Total cost = 3,000 +12/unit
D. Total cost = 4,000 +13/unit
Correct Answer: A
5. Roddy Company has the following cost formulas for overhead.
Based on these cost formulas, the total overhead cost at 600 machine
hours is expected to be:
A. 5,000𝐵.∗∗5,340**
C. 5,500𝐷.6,000
Correct Answer: B
6. When comparing a traditional income statement to a contribution
margin income statement:
A. Net income differs
B. Net income will always be identical on both
C. Only variable costs change
D. Fixed costs are ignored
Correct Answer: B
7. Kendra Corporation sells 100,000 wrenches
for 12𝑎𝑢𝑛𝑖𝑡. 𝐹𝑖𝑥𝑒𝑑𝑐𝑜𝑠𝑡𝑠𝑎𝑟𝑒300,000, and net income
is
200,000. 𝑊ℎ𝑎𝑡𝑠ℎ𝑜𝑢𝑙𝑑𝑏𝑒𝑟𝑒𝑝𝑜𝑟𝑡𝑒𝑑𝑎𝑠𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒𝑒𝑥𝑝𝑒𝑛𝑠𝑒𝑠𝑖𝑛𝑡ℎ𝑒𝐶𝑉𝑃𝑖𝑛𝑐𝑜𝑚𝑒𝑠𝑡𝑎𝑡𝑒𝑚
∗ 𝐴.500,000
, B. 600,000𝐶.∗∗700,000
D. $800,000
Correct Answer: C
8. Snyder Corporation, which produces and sells a single product,
recently experienced an increase in fixed costs relating to
depreciation on new equipment. This increase will affect:
A. Contribution margin ratio
B. Variable cost per unit
C. Break-even point
D. Sales price
Correct Answer: C
9. The following is last month's contribution format (CVP) income
statement: Sales (10,000
units) 1,200,000; 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒𝑒𝑥𝑝𝑒𝑛𝑠𝑒𝑠800,000; Contribution
margin 400,000; 𝐹𝑖𝑥𝑒𝑑𝑒𝑥𝑝𝑒𝑛𝑠𝑒𝑠240,000; Net income $160,000. What
is the company's break-even sales in units?
A. 5,000 units
B. 6,000 units
C. 7,000 units
D. 8,000 units
Correct Answer: B
10. A 45% contribution margin ratio means that:
A. 45% of revenue is variable cost
B. 45% of the company's revenue is available to cover fixed costs and
to contribute toward operating income
C. 45% of revenue is net income
