ACCT 526 MIDTERM EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

ACCT 526 MIDTERM EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 The process of choosing among competing alternatives is called - Answers decision making Adriana Alvarado has decided to purchase a personal computer. She has narrowed the choices to two: Drantex and Confiar. Both brands have the same processing speed, 6.4 gigabytes of hard-disk capacity, two USB ports, and a DVDRW drive, and each comes with the same basic software support package. Both come from mail-order companies with good reputations. The selling price for each is identical. After some review, Adriana discovers that the cost of operating and maintaining Drantex over a 3-year period is estimated to be $300. For Confiar, the operating and maintenance cost is $600. The sales agent for Drantex emphasized the lower operating and maintenance costs. The agent for Confiar, however, emphasized the service reputation of the product and the faster delivery time (Confiar can be purchased and delivered 1 week sooner than Drantex). Based on all the information, Adriana has decided to buy Confiar. What is the tot - Answers the product, its features, services and delivery speed Adriana Alvarado has decided to purchase a personal computer. She has narrowed the choices to two: Drantex and Confiar. Both brands have the same processing speed, 6.4 gigabytes of hard-disk capacity, two USB ports, and a DVDRW drive, and each comes with the same basic software support package. Both come from mail-order companies with good reputations. The selling price for each is identical. After some review, Adriana discovers that the cost of operating and maintaining Drantex over a 3-year period is estimated to be $300. For Confiar, the operating and maintenance cost is $600. The sales agent for Drantex emphasized the lower operating and maintenance costs. The agent for Confiar, however, emphasized the service reputation of the product and the faster delivery time (Confiar can be purchased and delivered 1 week sooner than Drantex). Based on all the information, Adriana has decided to buy Confiar. How does the st - Answers Drantex is emphasizing low costs, and Confiar is attempting to differentiate its PC by offering faster delivery and higher quality services. Which of the following is a characteristic of managerial accounting? - Answers collects financial information useful for internal decision making an emphasis on the future internal focus broad based and multidisciplinary Managerial Accounting or Financial Accounting? Ben Heald, head of production, wondered whether it would be more cost effective to buy parts partially assembled or to buy individual parts and assemble them at the Arben factory. - Answers managerial accounting Managerial Accounting or Financial Accounting? The president of Arben reminded Jenna that the stockholders meeting was coming up, and he needed her to prepare a Powerpoint presentation showing the income statement and balance sheet information for last year. - Answers Financial Accounting Managerial Accounting or Financial Accounting? Ellen Johnson, vice president of sales, has decided to expand the sales offices for next year. She sent Jenna the information on next year's rent and depreciation information for budgeting purposes. - Answers Managerial Accounting Managerial Accounting or Financial Accounting? Jenna's assistant, Mike, received the information from Ellen on depreciation and added it to depreciation expenses and accumulated depreciation on office equipment. - Answers Financial Accounting Managerial Accounting or Financial Accounting? Jenna compared the budgeted spending on materials used in production with the actual spending on materials used in production. Materials spending was significantly higher than expected. She set up a meeting to discuss this outcome with Ben Heald so that he could explain it. - Answers Managerial Accounting Bedron Company is a closely held investment service group that has been quite successful over the past 5 years, consistently providing most members of the top management group with 50% bonuses. In addition, both the chief financial officer and the chief executive officer have received 100% bonuses. Bedron expects this trend to continue. Recently, Bedron's top management group, which holds 35% of the outstanding shares of common stock, has learned that a major corporation is interested in acquiring Bedron. The other corporation's initial offer is attractive and is several dollars per share higher than Bedron's current share price. One member of management told a group of employees under him about the potential offer. He suggested that they might want to purchase more Bedron stock at the current price in anticipation of the takeover offer. Do you think that the employees should take the action suggested by their boss? - Answers no Bedron Company is a closely held investment service group that has been quite successful over the past 5 years, consistently providing most members of the top management group with 50% bonuses. In addition, both the chief financial officer and the chief executive officer have received 100% bonuses. Bedron expects this trend to continue. Recently, Bedron's top management group, which holds 35% of the outstanding shares of common stock, has learned that a major corporation is interested in acquiring Bedron. The other corporation's initial offer is attractive and is several dollars per share higher than Bedron's current share price. One member of management told a group of employees under him about the potential offer. He suggested that they might want to purchase more Bedron stock at the current price in anticipation of the takeover offer. Now suppose that it is not prohibited by Bedron's code of ethics. Is the action - Answers No The provision of accounting information for internal users is known as - Answers managerial accounting the objective of profit maximization should be constrained by the requirement that profits be achieved through - Answers both legal and ethical means Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing $22,000 were put into production. Direct labor of $28,000 (10 workers x 100 hours x $28 per hour) was incurred. Manufacturing overhead equaled $52,000. By the end of the week, the company had manufactured 3,900 hockey sticks. Calculate the total prime cost for last week. - Answers 50,000 Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing $22,000 were put into production. Direct labor of $28,000 (10 workers x 100 hours x $28 per hour) was incurred. Manufacturing overhead equaled $52,000. By the end of the week, the company had manufactured 3,900 hockey sticks. Calculate the per-unit cost. Round your answer to the nearest cent. - Answers 12.82 Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing $22,000 were put into production. Direct labor of $28,000 (10 workers x 100 hours x $28 per hour) was incurred. Manufacturing overhead equaled $52,000. By the end of the week, the company had manufactured 3,900 hockey sticks. Calculate the total conversion cost for last week. - Answers 80,000 Slapshot Company makes ice hockey sticks. Last week, direct materials (wood, paint, Kevlar, and resin) costing $22,000 were put into production. Direct labor of $28,000 (10 workers x 100 hours x $28 per hour) was incurred. Manufacturing overhead equaled $52,000. By the end of the week, the company had manufactured 3,900 hockey sticks. Calculate the per-unit conversion cost. Round your answer to the nearest cent. - Answers 20.51 Slapshot Company makes ice hockey sticks. During the month of June, the company purchased $127,000 of materials. Also during the month of June, Slapshot Company incurred direct labor cost of $174,000 and manufacturing overhead of $214,000. Inventory information is as follows: June 1: Materials: 48,000 & Work in Process: 65,000 June 30: Materials: $45,000 Work in process 63,000 Calculate the cost of goods manufactured for the month of June. - Answers 520,000 Slapshot Company makes ice hockey sticks. During the month of June, the company purchased $127,000 of materials. Also during the month of June, Slapshot Company incurred direct labor cost of $174,000 and manufacturing overhead of $214,000. Inventory information is as follows: June 1: Materials: 48,000 & Work in Process: 65,000 June 30: Materials: $45,000 Work in process 63,000 Calculate the cost of one hockey stick assuming that 1,900 sticks were completed during June. Round your answer to the nearest cent. - Answers 273.68 Which of the following is a period expense? - Answers CEO salary Wachman Company produces a product with the following per-unit costs: Direct materials $15 Direct labor 6 Manufacturing overhead 19 Last year, Wachman produced and sold 2,000 units at a price of $75 each. Total selling and administrative expense was $30,000. Refer to the information for Wachman Company above. Total gross margin for last year was a. 40,000 b. 70,000 c. 80,000 d. 88,000 e. 100,000 - Answers 70,000 Martinez Manufacturing Inc. showed the following costs for last month: Direct materials $7,000 Direct labor 2,500 Manufacturing overhead 1,500 Selling expense 8,000 Last month, 4,000 units were produced and sold. Classify each of the costs as product cost or period cost Direct Materials ______ Direct Labor _______ Manufacturing overhead _________ Selling Expense ______ - Answers product cost product cost product cost period cost Martinez Manufacturing Inc. showed the following costs for last month: Direct materials $7,000 Direct labor 2,500 Manufacturing overhead 1,500 Selling expense 8,000 Last month, 4,000 units were produced and sold.