ACCT 526 Exam Prep Review Tested
Questions and Answers Verified Solutions
Latest Update 2026/2027
Answer:
regression analysis is a more precide approach than the high- low or scattergraph methods
●● an example of a discretionary fixed cost is:
Answer:
management training
●● when comparing a traditional income statement to a contribution margin income statement:
Answer:
net income will always be identical on both
●● syndeer corportation, which produces and sells a single product, recently experienced an
increase in fixed cost relating to depreciation on new equipment. if variable cost and sales prices
remain unchanged, what will happen to contribution margin and the break even point?
Answer:
contribution margin will be unchanged and the break even point will increase
●● a 45% contribution margin ratio means that:
Answer:
45% of the companys revenue is available to cover fixed costs and to contribute towards the
operating income
●● in a decision to retain or replace equipment, the book value of the old equipment is a:
Answer:
sunk cost
●● which of the following are risks of outsourcing the production of a part?
, Answer:
all of these are risks of outsourcing! (Unscheduled price increase, unreliable delivery, unpredictable
quality.)
●● 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:
Answer:
the order will likely be rejected
●● a job order cost system traces direct materials cost to a particular job by means of:
Answer:
material requisitions
●● in a manufacturing company, the cost of goods is equal to:
Answer:
the beginning inventory of work increase of work in progress, plus total manufacturing costs, less
the ending inventory of work in progress
●● the flow of costs in job order costing:
Answer:
parallels the physical flow of materials as they are converted into finished goods
●● 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:
Answer:
is a part of the ending balance of the work in process inventory account
●● at the end of the accounting period, applied overhead was larger than actual overhead by a
material amount. the overapplied overhead should be:
Answer:
appointed among work in process inventory, finished goods inventory and cost of goods sold
●● in the year-end financial statements, the manufacturing overhead account should have:
Answer:
Questions and Answers Verified Solutions
Latest Update 2026/2027
Answer:
regression analysis is a more precide approach than the high- low or scattergraph methods
●● an example of a discretionary fixed cost is:
Answer:
management training
●● when comparing a traditional income statement to a contribution margin income statement:
Answer:
net income will always be identical on both
●● syndeer corportation, which produces and sells a single product, recently experienced an
increase in fixed cost relating to depreciation on new equipment. if variable cost and sales prices
remain unchanged, what will happen to contribution margin and the break even point?
Answer:
contribution margin will be unchanged and the break even point will increase
●● a 45% contribution margin ratio means that:
Answer:
45% of the companys revenue is available to cover fixed costs and to contribute towards the
operating income
●● in a decision to retain or replace equipment, the book value of the old equipment is a:
Answer:
sunk cost
●● which of the following are risks of outsourcing the production of a part?
, Answer:
all of these are risks of outsourcing! (Unscheduled price increase, unreliable delivery, unpredictable
quality.)
●● 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:
Answer:
the order will likely be rejected
●● a job order cost system traces direct materials cost to a particular job by means of:
Answer:
material requisitions
●● in a manufacturing company, the cost of goods is equal to:
Answer:
the beginning inventory of work increase of work in progress, plus total manufacturing costs, less
the ending inventory of work in progress
●● the flow of costs in job order costing:
Answer:
parallels the physical flow of materials as they are converted into finished goods
●● 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:
Answer:
is a part of the ending balance of the work in process inventory account
●● at the end of the accounting period, applied overhead was larger than actual overhead by a
material amount. the overapplied overhead should be:
Answer:
appointed among work in process inventory, finished goods inventory and cost of goods sold
●● in the year-end financial statements, the manufacturing overhead account should have:
Answer:
