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BA225 FINAL EXAMS MANAGERIAL ACCOUNTING TESTS AND ASSIGNMENTS
$ 15.00

BA225 MANAGERIAL ACCOUNTING TESTS AND ASSIGNMENTS

 

 

 

Complete tests 1, 2, 3, 4, 5, two assignments, and final exam.

that's $6.25 per test!

 

1

.

A cost that contains both fixed and variable elements is referred to as a:

2.

Whirl Company sells cordless razors for $50. Variable costs are 40% of sales and total fixed costs are $40,000. What is the firm's magnitude of operating leverage if 2,000 units are sold?

3.

Larry's Lawn Care incurs significant gasoline costs. This cost would be classified as a variable cost if the total gasoline cost:

4.

Select the incorrect statement regarding costs and expenses.

5.

Choose the answer that is not a distinguishing characteristic of financial accounting information.

6.

All of the following are features of managerial accounting except:

7.

During her first year with the company, Ann mistakenly accumulated some of the company's period costs in ending inventory. Which of the following indicates how this error affects the company's financial statements assuming number of units produced exceeded number of units sold during the period?

8.

As a Certified Management Accountant, Jill is bound by the standards of ethical conduct issued by the Institute of Management Accountants. If she accepts an expensive gift from a vendor trying to win a contract with her firm, which of the following standards will she violate?

9.

The excess of a product's selling price over its variable costs is referred to as:

10.

Assuming a company's inventory increased during the period, which of the following misclassifications increases net income?

 

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A:

Points Awarded

100.00

Points Missed

0.00

Percentage

100.0%

 

 

Solution Appended at: May. 15, 2010 at 05:01:56AM

Points Awarded 100.00
Points Missed 0.00
Percentage 100.0%


1. 
A cost that contains both fixed and variable elements is referred to as a: 
A) hybrid cost.
B) mixed cost.
C) half cost.
D) semi cost.

Points Earned: 4.0/4.0 
Correct Answer(s): B 




2. 
Whirl Company sells cordless razors for $50. Variable costs are 40% of sales and total fixed costs are $40,000. What is the firm\'s magnitude of operating leverage if 2,000 units are sold? 
A) 3.0
B) 2.0
C) 1.5
D) None of the above

Points Earned: 4.0/4.0 
Correct Answer(s): A 




3. 
Larry\'s Lawn Care incurs significant gasoline costs. This cost would be classified as a variable cost if the total gasoline cost: 
A) varies inversely with the number of hours the lawn equipment is operated.
B) increases in direct proportion to the number of hours the lawn equipment is operated.
C) is not affected by the number of hours the lawn equipment is operated.
D) A or B

Points Earned: 4.0/4.0 
Correct Answer(s): B 




4. 
Select the incorrect statement regarding costs and expenses. 
A) Some costs are initially recorded as expenses while others are initially recorded as assets.
B) Expenses are incurred when assets are used to generate revenue.
C) Manufacturing-related costs are initially recorded as expenses.
D) Non-manufacturing costs should be expensed in the period in which they are incurred.

Points Earned: 4.0/4.0 
Correct Answer(s): C 




5. 
Choose the answer that is not a distinguishing characteristic of financial accounting information. 
A) It is global information that reflects the performance of the whole company.
B) Its time horizon is the present and future.
C) It is more concerned with financial data than physical or economic data.
D) It is more highly regulated than managerial accounting information.

Points Earned: 4.0/4.0 
Correct Answer(s): B 




6. 
All of the following are features of managerial accounting except: 
A) information is historically based and reported annually.
B) information includes economic and non-financial data as well as financial data.
C) information is provided primarily to insiders such as managers.
D) information is reported continuously with a present or future orientation.

Points Earned: 4.0/4.0 
Correct Answer(s): A 




7. 
During her first year with the company, Ann mistakenly accumulated some of the company\'s period costs in ending inventory. Which of the following indicates how this error affects the company\'s financial statements assuming number of units produced exceeded number of units sold during the period? 
A) Cash flows from operations are understated.
B) Gross margin is understated
C) Net income is understated
D) Inventory is overstated

Points Earned: 4.0/4.0 
Correct Answer(s): D 




8. 
As a Certified Management Accountant, Jill is bound by the standards of ethical conduct issued by the Institute of Management Accountants. If she accepts an expensive gift from a vendor trying to win a contract with her firm, which of the following standards will she violate? 
A) Competence
B) Confidentiality
C) Integrity
D) Objectivity

Points Earned: 4.0/4.0 
Correct Answer(s): C 




9. 
The excess of a product\'s selling price over its variable costs is referred to as: 
A) gross profit.
B) contribution margin.
C) gross margin.
D) manufacturing margin.

Points Earned: 4.0/4.0 
Correct Answer(s): B 




10. 
Assuming a company\'s inventory increased during the period, which of the following misclassifications increases net income? 
A) Recording administrative salaries as a product cost
B) Recording depreciation on production equipment as an expense
C) Expensing raw material costs instead of including them in inventory
D) B and C

Points Earned: 4.0/4.0 
Correct Answer(s): A 




11. 
Based on the following cost data, items labeled (a) and (b) in the table below are which of the following amounts, respectively?

A) (a) = $3.00; (b) = $3.00
B) (a) = $5.00; (b) = $2.00
C) (a) = $2.50; (b) = $2.00
D) (a) = $5.00; (b) = $4.00

Points Earned: 4.0/4.0 
Correct Answer(s): B 




12. 
Identify the true statement regarding how product costs in a manufacturing company differ from product costs in a service company. 
A) Manufacturing companies incur costs for supplies but service companies do not.
B) Manufacturing companies accumulate product costs in inventory accounts, while services companies do not.
C) Service companies generally incur less labor costs than manufacturing companies.
D) Service companies are less competitive than manufacturing companies.

Points Earned: 4.0/4.0 
Correct Answer(s): B 




13. 
Hico Bottling Company pays its production manager a salary of $5,000 per month. Salespersons are paid strictly on commission, at $2 for each case of product sold. For Hico Bottling Company, the salespersons\' commissions are an example of: 
A) a variable cost.
B) a fixed cost.
C) a mixed cost.
D) none of the above.

Points Earned: 4.0/4.0 
Correct Answer(s): A 




14. 
Casters, Inc. normally produces between 150,000 and 175,000 units each year. Producing more than 175,000 units alters the company\'s cost structure. For example, fixed costs increase because more space must be rented, and additional supervisors must be hired. The production range between 150,000 and 175,000 is called the: 
A) differential range.
B) relevant range.
C) opportunity range.
D) leverage range.

Points Earned: 4.0/4.0 
Correct Answer(s): B 




15. 
Gypsy Joe\'s operates a chain of coffee shops. The company pays rent of $10,000 per year for each shop. Supplies (napkins, bags and condiments) are purchased as needed. The managers of each shop are paid a salary of $2,500 per month and all other employees are paid on an hourly basis. The costs of supplies relative to the number of customers in a particular shop and relative to the number of customers in the entire chain of shops is which kind of cost, respectively? 
A) Variable cost / fixed cost
B) Fixed cost / fixed cost
C) Variable cost / fixed cost
D) Variable cost / variable cost

Points Earned: 4.0/4.0 
Correct Answer(s): D 




16. 
Select the correct statement from the following. 
A) A fixed cost structure offers less risk (i.e., less earnings volatility) and higher opportunity for profitability than does a variable cost structure.
B) A variable cost structure offers less risk and higher opportunity for profitability than does a fixed cost structure.
C) A fixed cost structure offers greater risk but higher opportunity for profitability than does a variable cost structure.
D) A variable cost structure offers greater risk but higher opportunity for profitability than does a fixed cost structure.

Points Earned: 4.0/4.0 
Correct Answer(s): C 




17. 
The following income statement is provided for Barron Company in 2006:

What amount was the company\'s contribution margin?
A) $11,000
B) $25,000
C) $26,000
D) $30,000

Points Earned: 4.0/4.0 
Correct Answer(s): B 




18. 
The following information relates to Minimart\'s 2007 accounting period:

Based on this information, what is the company\'s net income for 2007?
A) $15,000
B) $35,000
C) $18,000
D) $21,000

Points Earned: 4.0/4.0 
Correct Answer(s): C 




19. 
The following information is provided for Steinberg Company:

What is this company\'s contribution margin?
A) $135,000
B) $35,000
C) $90,000
D) $60,000

Points Earned: 4.0/4.0 
Correct Answer(s): A 




20. 
Wall Company incurred $30,000 of fixed cost and $40,000 of variable cost when 2,000 units of product were made and sold. If the company\'s volume increases to 2,500 units, the company\'s total costs will be: 
A) $80,000.
B) $70,000.
C) $87,500.
D) $140,000.

Points Earned: 4.0/4.0 
Correct Answer(s): A 




21. 
What is the effect on the financial statements of recording a $100 purchase of raw materials?

A) Item A
B) Item B
C) Item C
D) Item D

Points Earned: 4.0/4.0 
Correct Answer(s): C 




22. 
Which of the following costs is not considered to be a product cost? 
A) Raw materials costs
B) Depreciation of delivery vehicles
C) Wages paid to production workers
D) Factory utilities costs

Points Earned: 4.0/4.0 
Correct Answer(s): B 




23. 
Which of the following should be recorded as an asset? 
A) Paid for a new advertising campaign
B) Paid rent on the warehouse used to store finished goods
C) Paid salary for the vice president of marketing
D) Paid for raw materials to be used in production

Points Earned: 4.0/4.0 
Correct Answer(s): D 




24. 
Which of the following is not one of the four Standards of Ethical Conduct for Management Accountants? 
A) Competence
B) Confidentiality
C) Integrity
D) Education

Points Earned: 4.0/4.0 
Correct Answer(s): D 




25. 
Why do accountants normally calculate cost per unit as an average? 
A) Determining the exact cost of a product is virtually impossible.
B) Some manufacturing-related costs cannot be accurately traced to specific units of product.
C) Even when producing multiple units of the same product, normal variations occur in the amount of materials and labor used.
D) All of the above are justifications for computing average unit costs.

Points Earned: 4.0/4.0 
Correct Answer(s): D 

Solution Appended at: May. 15, 2010 at 05:03:15AM
Test 2

1. 
The Euro Company sells two kinds of luggage. The company projected the following cost information for the two products:

The company\'s total fixed costs are expected to be $280,000.
Based this information, what is the combined number of units of the two products that would be required to breakeven (round your answer to the nearest whole unit)
A) 1,556 units
B) 2,714 units
C) 2,800 units
D) none of the above

2. 
All of the following are variables that could be considered in a decision to outsource a component that is currently being produced in house. Which of the following is not likely to be relevant? 
A) the book value of equipment used in making the component
B) the impact on employee morale
C) the importance of vertical integration to the company
D) the reliability of the supplier

3. 
Brumlow Company has a contribution margin ratio of 25%. The company is considering a proposal that will increase sales by $100,000. What increase in profit can be expected assuming total fixed costs incre

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  • BA225 FINAL EXAMS MANAGERIAL ACCOUNTING TESTS AND ASSIGNMENTS
    $15.00

    BA225 MANAGERIAL ACCOUNTING TESTS AND ASSIGNMENTS Complete tests 1, 2, 3, 4, 5, two assignments, and final exam. that's $6.25 per test! 1 . A cost that contains both fixed and variable elements is referred to as a: 2. Whirl Company sells cordless razors for $50. Variable costs are 40% of sales and total fixed costs are $40,000. What is the firm's magnitude of operating leverage if 2,000 units are sold? 3. Larry's Lawn Care incurs significant gasoline costs. This cost would be classified as a variable cost if the total gasoline cost: 4. Select the incorrect statement regarding costs and

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