Accounting II Final Exam Questions and
Answers with Verified Solutions | Latest
Updated 2026
How costs change as activity Cost behavior
levels change
A cost that changes in total Variable cost
with activity
A cost that stays the same in Fixed cost
total regardless of activity
A cost that has both fixed and Mixed cost
variable components
A cost that differs between Relevant cost
decision options
A past cost that cannot be Sunk cost
changed
The benefit you give up by Opportunity cost
choosing one option over
another
Sales revenue minus variable Contribution margin
costs
, Contribution margin divided by Contribution margin ratio
sales
The level of sales where profit Break even point
equals zero
Expected sales in units and Sales budget
dollars
Units that must be produced Production budget
to meet sales needs
Amount and cost of materials Direct materials budget
needed
Total labor hours and cost Direct labor budget
required
Estimated indirect production Manufacturing overhead budget
costs
Expected cash collected from Cash receipts budget
customers
Plan of expected cash inflows Cash budget
and outflows
Complete set of all budgets Master budget
Inventory at the start of a Beginning inventory
period
Answers with Verified Solutions | Latest
Updated 2026
How costs change as activity Cost behavior
levels change
A cost that changes in total Variable cost
with activity
A cost that stays the same in Fixed cost
total regardless of activity
A cost that has both fixed and Mixed cost
variable components
A cost that differs between Relevant cost
decision options
A past cost that cannot be Sunk cost
changed
The benefit you give up by Opportunity cost
choosing one option over
another
Sales revenue minus variable Contribution margin
costs
, Contribution margin divided by Contribution margin ratio
sales
The level of sales where profit Break even point
equals zero
Expected sales in units and Sales budget
dollars
Units that must be produced Production budget
to meet sales needs
Amount and cost of materials Direct materials budget
needed
Total labor hours and cost Direct labor budget
required
Estimated indirect production Manufacturing overhead budget
costs
Expected cash collected from Cash receipts budget
customers
Plan of expected cash inflows Cash budget
and outflows
Complete set of all budgets Master budget
Inventory at the start of a Beginning inventory
period
