Question details

ACCT 346 Week 4 Midterm 2
$ 15.00

 1.

Question :

(TCO 1) Which of the following is not a difference between financial accounting and managerial accounting?

 

Student Answer:

 

 Financial accounting is primarily concerned with reporting the past, while managerial accounting is more concerned with the future.

 

   

 Managerial accounting uses more nonmonetary information than is used in financial accounting.

 

 

CORRECT

 Managerial accounting is primarily concerned with providing information for external users while financial accounting is concerned with internal users.

 

   

 Financial accounting must follow GAAP while managerial accounting is not required to follow GAAP.

 

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) Product costs

 

Student Answer:

 

 are also called manufacturing costs.

 

   

 are considered an asset until the finished goods are sold.

 

   

 become an expense when the goods are sold.

 

 

CORRECT

 All of the above answers are correct.

 

Instructor Explanation:

Chapter 2, Page 38

 
Available solutions