Question details

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 Answer:

 

 taxing authorities.

 

 

CORRECT

 internal users of accounting information.

 

   

 external users of accounting information.

 

   

 the Securities and Exchange Commission (SEC).

 

Instructor Explanation:

Chapter 1, Page 7

 

 

Points Received:

4 of 4

 

Comments:

 

 

 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.

 

 

CORRECT

 When production increases, fixed cost per unit decreases.

 

   

 When production decreases, total fixed costs increase.

 

Instructor Explanation:

Chapter 1, Page 9

 

 

Points Received:

4 of 4

 

Comments:

 

 

 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:

CORRECT

 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

 

 

Points Received:

4 of 4

 

Comments:

 

 

 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:

CORRECT

 $5.80

 

   

 $7.74

 

   

 $6.68

 

   

 $3.25

 

Instructor Explanation:

Chapter 1, Page 8

($4,080 + $5,200) / 1,600 = $5.80

 

 

Points Received:

4 of 4

 

Comments:

 

 

 5.

Question :

(TCO 1) Which of the following is an example of a manufacturing overhead cost?

 

Student Answer:

CORRECT

 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

 

 

Points Received:

4 of 4

 

Comments:

 

 

 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

 

 

CORRECT

 commissions paid on each unit sold

 

Instructor Explanation:

Chapter 2, Page 39

 

 

Points Received:

4 of 4

 

Comments:

 

 

 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

 

 

CORRECT

 $190,000

 

   

 $220,000

 

   

 $250,000

 

Instructor Explanation:

Chapter 2, Page 43

$220,000 - $30,000 = $190,000

 
Available solutions