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ACCT 346 Week 4 Midterm 1
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 1 Question : (TCO 1) Managerial accounting stresses accounting concepts and procedures that are relevant to preparing reports for
 Student Answer: taxing authorities. internal users of accounting information. external users of accounting information. the Securities and Exchange Commission (SEC). Instructor Explanation: Chapter 1, Page 7

 2 Question : TCO 1) Which of the following statements regarding fixed costs is true?
 Student Answer: When production increases, fixed cost per unit increases. When production decreases, total fixed costs decrease. When production increases, fixed cost per unit decreases. When production decreases, total fixed costs increase. Instructor Explanation: Chapter 1, Page 9

 3 Question : (TCO 1) You own a car and are trying to decide whether or not to trade it in and buy a new car. Which of the following costs is an opportunity cost in this situation?
 Student Answer: the trip to Cancun that you will not be able to take if you buy the car the cost of the car you are trading in the cost of your books for this term the cost of your car insurance last year Instructor Explanation: Chapter 1, Page 9

 4 Question : (TCO 1) Shula’s 347 Grill has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: materials, \$4,080; hourly labor (variable), \$5,200; rent (fixed), \$1,700; depreciation, \$800; and other fixed costs, \$600. Each steak dinner sells for \$14.00 each. How much is the budgeted variable cost per unit?
 Student Answer: \$5.80 \$7.74 \$6.68 \$3.25 Instructor Explanation: Chapter 1, Page 8 (\$4,080 + \$5,200) / 1,600 = \$5.80

 5 Question : (TCO 1) Which of the following is an example of a manufacturing overhead cost?
 Student Answer: security at the manufacturing plant fabric used to produce shirts cost of shipping product to customers the salary of the president of the company Instructor Explanation: Chapter 2, Page 37

 6 Question : (TCO 1) Which of the following is a period cost?
 Student Answer: rent on a factory building depreciation on production equipment raw materials cost commissions paid on each unit sold Instructor Explanation: Chapter 2, Page 39

 7 Question : (TCO 1) If the balance in the Finished Goods Inventory account increased by \$30,000 during the period and the cost of goods manufactured was \$220,000, how much is cost of goods sold?
 Student Answer: \$110,000 \$190,000 \$220,000 \$250,000 Instructor Explanation: Chapter 2, Page 43 \$220,000 - \$30,000 = \$190,000

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• ACCT 346 Week 4 Midterm 1
\$15.00

1. Question : (TCO 1) Managerial accounting stresses accounting concepts and procedures that are relevant to preparing reports for Student Answe

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