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ACCT 346 Managerial Accounting Week 8 Final Exam Devry

ACCT 346 (Introduction to Managerial Accounting) Week 8 Final Exam

Page 1

1. (TCO 1)A difference between actual costs and planned costs (Points : 4)

2. (TCO 1)Which of the following is not likely to be a fixed cost? (Points : 4)

3. (TCO 2) Which of the following is not a manufacturing cost? (Points : 4)

4. (TCO 2)A job-order costing system is likely used by a (Points : 4)

5. (TCO 3) Equivalent units are calculated by (Points : 4)

6. (TCO 3) The Freedom Corporation’s painting department had a beginning inventory of 580 units, which had direct material costs of $22,715. During June, 9,290 units were started and costs of $1,268,085 were incurred for direct material. Ending inventory consists of 1,000 units, which are 35% complete with respect to direct material. What is the cost per equivalent unit for direct material? (Points : 4)

7. (TCO 4) Which of the following is not an assumption of C-V-P analysis? (Points : 4)

8. (TCO 4) The contribution margin per unit is the difference between (Points : 4)

9. (TCO 5)Full costing (Points : 4)

10. (TCO 5) Which of the following is not true when units sold exceed units….? (Points : 4)

11. (TCO 6) Cost-plus contracts are common in which of the following industries? (Points : 4)

12. (TCO 6)Which of the following is not generally true when a company compares ABC and traditional costing? (Points : 4)

13. (TCO 7) Fixed costs that will be eliminated if a particular course of action is undertaken are called (Points : 4)

Page 2

1. (TCO 7) Two or more products that result from common inputs are called (Points : 4)

2. (TCO 8) Activity based pricing seeks to (Points : 4)

3. (TCO 8)When deciding to accept or reject a special order, which of the following costs would most likely not be relevant? (Points : 4)

4. (TCO 9) Present value techniques (Points : 4)

5. (TCO 9)The internal rate of return (Points : 4)

6. (TCO 10) A method of budget preparation that requires all budgeted amounts to be justified by the department, even if the amounts were supported in prior periods, is called (Points : 4)

7. (TCO 10) Which budget is prepared first? (Points : 4)

8. (TCO 10) The difference between standard costs and budgeted costs is that…(Points : 4)

9. (TCO 10)The overhead volume variance indicates that (Points : 4)

10. (TCO 10) A subunit that has responsibility for controlling cost but not revenues…(Points : 4)

11. (TCO 10) Which of the following is not an advantage of decentralization for…? (Points : 4)

12. (TCO 10) The ratio that measures the return earned independently of how…(Points : 4)

Page 3

1. (TCO 1) Distinguish between product costs and period costs. Define both types of costs and provide examples. (Points : 20)

2. (TCO 6) Pacific Airlines has three service departments; ticketing, baggage handling, and aircraft maintenance. Costs of these departments are allocated to two revenue producing departments, domestic and international flights. Costs for the service departments are not separated into fixed and variable and the totals are as follows:

3. (TCO 10) Gina’s Boutique makes custom jewelry. One item, the guru necklace, is a best seller and sales in units for the first quarter are as follows:

4. (TCO 2) Singleton Company is trying to determine a predetermined manufacturing overhead. Estimated overhead for the upcoming year is $600,000. Budgeted machine hours are 120,000 hours, and budgeted labor hours are 15,000 hours at a rate of $20.00 per hour. Compute the predetermined overhead rate based on:

Page 4

1. (TCO 9)A project will require an initial investment of $600,000 and is expected to generate the following cash flows:

2. (TCO 4)Legal Docs Inc is a legal services firm that files incorporation papers for small businesses. They charge $1,000 per application. This year’s income statement shows…..:

3. (TCO 5) The following data has been taken from Air-Tite company in its first year of business

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