ACCT 201 EXAM QUESTIONS AND
ANSWERS
The break-even point in sales dollars can be calculated by dividing - Answer-Fixed
expenses by the contribution margin ratio.
Cost-volume-profit analysis is based on certain general assumptions. Which of the
following statements about these assumptions is not true? - Answer-Unit variable
expense decreases as activity increases.
The difference between the current sales revenue and the break-even sales revenue is
the: - Answer-Margin of safety
Inventoriable costs that have become expenses can be found on the Income Statement
in: - Answer-Cost of Goods Sold. (Remember, we hold these expenses on the Balance
Sheet until the product is sold, and then we match the expense with the Sales
Revenue.)
Which of the following is an indirect product cost? - Answer-Property taxes on plant
facilities
Which of the following Redondo Beach T-Shirt Makers costs is a period cost? - Answer-
Salary of owner's secretary
Process costing is used when: - Answer-Large numbers of nearly identical products are
manufactured.
When underapplied or overapplied manufacturing is prorated, accounts to which the
difference may be allocated include: - Answer-Work In Process Inventory and Finished
Goods Inventory (and Cost of Goods Sold)
Which of the following statements represents a similarity between financial and
managerial accounting? - Answer-Both draw upon data from an organization's basic
accounting system.
Which of the following is not an objective of managerial accounting? - Answer-Cost
minimization and profit maximization
ANSWERS
The break-even point in sales dollars can be calculated by dividing - Answer-Fixed
expenses by the contribution margin ratio.
Cost-volume-profit analysis is based on certain general assumptions. Which of the
following statements about these assumptions is not true? - Answer-Unit variable
expense decreases as activity increases.
The difference between the current sales revenue and the break-even sales revenue is
the: - Answer-Margin of safety
Inventoriable costs that have become expenses can be found on the Income Statement
in: - Answer-Cost of Goods Sold. (Remember, we hold these expenses on the Balance
Sheet until the product is sold, and then we match the expense with the Sales
Revenue.)
Which of the following is an indirect product cost? - Answer-Property taxes on plant
facilities
Which of the following Redondo Beach T-Shirt Makers costs is a period cost? - Answer-
Salary of owner's secretary
Process costing is used when: - Answer-Large numbers of nearly identical products are
manufactured.
When underapplied or overapplied manufacturing is prorated, accounts to which the
difference may be allocated include: - Answer-Work In Process Inventory and Finished
Goods Inventory (and Cost of Goods Sold)
Which of the following statements represents a similarity between financial and
managerial accounting? - Answer-Both draw upon data from an organization's basic
accounting system.
Which of the following is not an objective of managerial accounting? - Answer-Cost
minimization and profit maximization
