AC 201 exam 3 angel smith UAB Questions
with Verified Solutions
At the beginning of the accounting period, Nutrition Incorporated estimated that total fixed
overhead cost would be $50,600 and that sales volume would be 10,000 units. At the end of the
accounting period actual fixed overhead cost amounted to $56,100 and actual sales volume was
11,000 units. Nutrition uses a predetermined overhead rate and a cost plus pricing model to
establish its sales price. Based on this information the predetermined overhead rate is 5.06
At the beginning of the accounting period, Nutrition Incorporated estimated that total fixed cost
would be $50,600 and that sales volume would be 10,000 units. At the end of the accounting
period actual sales volume was 11,000 units. Nutrition uses a predetermined overhead rate and a
cost plus pricing model to establish its sales price. Based on this information Nutrition
overpriced its products.
At the beginning of the accounting period, Nutrition Incorporated estimated that total fixed
overhead cost would be $50,600 and that sales volume would be 10,000 units. At the end of the
accounting period actual fixed overhead was $56,100 and actual sales volume was 11,000 units.
Nutrition uses a predetermined overhead rate and a cost plus pricing model to establish its sales
price. Based on this information the fixed overhead spending variance is 5500 favorable
The central concept in decentralization is that the people at the top of the organization should
have the primary decision making role because they know what is best for the organization as a
whole. This statement is false
, A grocery store store that is part of a national chain of grocery stores is most likely to be
classified as a profit center
A manager of an investment center is responsible for cost control, profitability, investment
decisions
A decision to open a new restaurant would be made by a manager of a(n) investment
center
A manager of a cost center is evaluated using Variance analysis
Management by exception is a strategy that maximizes profitability by rewarding managers who
demonstrate exceptional performance. This statement is false
The return on investment (ROI) is measured by dividing the amount of operating income by the
amount of the return. This statement is false
An ROI of 15% means that a company received fifteen cents for every dollar it invested. This
statement is true
Which of the following types of business is most likely to have a low margin and high turnover?
- a car dealership like a Mercedes sales organization
with Verified Solutions
At the beginning of the accounting period, Nutrition Incorporated estimated that total fixed
overhead cost would be $50,600 and that sales volume would be 10,000 units. At the end of the
accounting period actual fixed overhead cost amounted to $56,100 and actual sales volume was
11,000 units. Nutrition uses a predetermined overhead rate and a cost plus pricing model to
establish its sales price. Based on this information the predetermined overhead rate is 5.06
At the beginning of the accounting period, Nutrition Incorporated estimated that total fixed cost
would be $50,600 and that sales volume would be 10,000 units. At the end of the accounting
period actual sales volume was 11,000 units. Nutrition uses a predetermined overhead rate and a
cost plus pricing model to establish its sales price. Based on this information Nutrition
overpriced its products.
At the beginning of the accounting period, Nutrition Incorporated estimated that total fixed
overhead cost would be $50,600 and that sales volume would be 10,000 units. At the end of the
accounting period actual fixed overhead was $56,100 and actual sales volume was 11,000 units.
Nutrition uses a predetermined overhead rate and a cost plus pricing model to establish its sales
price. Based on this information the fixed overhead spending variance is 5500 favorable
The central concept in decentralization is that the people at the top of the organization should
have the primary decision making role because they know what is best for the organization as a
whole. This statement is false
, A grocery store store that is part of a national chain of grocery stores is most likely to be
classified as a profit center
A manager of an investment center is responsible for cost control, profitability, investment
decisions
A decision to open a new restaurant would be made by a manager of a(n) investment
center
A manager of a cost center is evaluated using Variance analysis
Management by exception is a strategy that maximizes profitability by rewarding managers who
demonstrate exceptional performance. This statement is false
The return on investment (ROI) is measured by dividing the amount of operating income by the
amount of the return. This statement is false
An ROI of 15% means that a company received fifteen cents for every dollar it invested. This
statement is true
Which of the following types of business is most likely to have a low margin and high turnover?
- a car dealership like a Mercedes sales organization
