ACCT 526 FINAL Exam Questions and
Answers
A 45% contribution margin ratio means that: - ANS-45% of the companys revenue is
available to cover fixed costs and to contribute towards the operating income
a job order cost system traces direct materials cost to a particular job by means of: -
ANS-material requisitions
a production budget includes separate schedules for - ANS-materials, labor, and
overhead
a well prepared budget can help benefit the company in all of the following ways except
for: - ANS-guarantee profit level
an advantage of using regression analysis over the high low and scattergraph methods
is that - ANS-regression analysis is a more precide approach than the high-low or
scattergraph methods
an example of a discretionary fixed cost is: - ANS-management training
at the end of the accounting period, applied overhead was larger than actual overhead
by a material amount. the overapplied overhead should be: - ANS-appointed among
work in process inventory, finished goods inventory and cost of goods sold
cash flows are reported on the statement of cash flows in which of the following
sequences? - ANS-operating, investing, financing
if a plant is operating at full capacity and receives a one time opportunity to accept an
order at a special price below its usual price then: - ANS-the order will likely be rejected
in a decision to retain or replace equipment, the book value of the old equipment is a: -
ANS-sunk cost
in a job order cost system, the amount of overhead cost that has been applied to a job
that remains incomplete at the end of a period: - ANS-is a part of the ending balance of
the work in process inventory account
in a manufacturing company, the cost of goods is equal to : - ANS-the beginning
inventory of work increase of work in progress, plus total manufacturing costs, less the
ending inventory of work in progress
Answers
A 45% contribution margin ratio means that: - ANS-45% of the companys revenue is
available to cover fixed costs and to contribute towards the operating income
a job order cost system traces direct materials cost to a particular job by means of: -
ANS-material requisitions
a production budget includes separate schedules for - ANS-materials, labor, and
overhead
a well prepared budget can help benefit the company in all of the following ways except
for: - ANS-guarantee profit level
an advantage of using regression analysis over the high low and scattergraph methods
is that - ANS-regression analysis is a more precide approach than the high-low or
scattergraph methods
an example of a discretionary fixed cost is: - ANS-management training
at the end of the accounting period, applied overhead was larger than actual overhead
by a material amount. the overapplied overhead should be: - ANS-appointed among
work in process inventory, finished goods inventory and cost of goods sold
cash flows are reported on the statement of cash flows in which of the following
sequences? - ANS-operating, investing, financing
if a plant is operating at full capacity and receives a one time opportunity to accept an
order at a special price below its usual price then: - ANS-the order will likely be rejected
in a decision to retain or replace equipment, the book value of the old equipment is a: -
ANS-sunk cost
in a job order cost system, the amount of overhead cost that has been applied to a job
that remains incomplete at the end of a period: - ANS-is a part of the ending balance of
the work in process inventory account
in a manufacturing company, the cost of goods is equal to : - ANS-the beginning
inventory of work increase of work in progress, plus total manufacturing costs, less the
ending inventory of work in progress
