NOVA southeastern ACCt5140 final exam 100% score

Attempt Score 30 out of 30 points

100%

QUESTION 1

1. When management directs attention only to those activities not proceeding according to plan, they are engaging in:

Activity-based management

Organization-based management

Management by exception

Just-in-time management

1.

1 points

QUESTION 2

1. Over the short term, which type of costs is indifferent to activity level changes?

Variable costs

Fixed costs

Mixed costs

Step costs

1 points

QUESTION 3

1. A unit contribution margin measures:

The difference between price and variable cost per unit

The difference between sales and cost of goods sold on a unit basis

The difference between unit sales and total costs per unit

The percentage difference between sales and cost of goods sold

1 points

QUESTION 4

1. Which of the following statements about budgeted financial statements is not true?

Budgeted financial statements need to adhere to the same format as the audited financial statements.

Development of budgeted financial statements is facilitated by spreadsheet programs.

Budgeted financial statements reflect the results of operations assuming all budgeted predictions are correct.

Budgeted financial statements are hypothetical.

1 points

QUESTION 5

1. Which of the following statements concerning the cash budget is true?

The cash budget summarizes all economic activities during the budget period.

The cash budget summarizes all cash receipts and disbursements during the budget period.

The cash budget summarizes all sales and expenses during the budget period.

The cash budget summarizes all revenues and expenses during the budget period.

1 points

QUESTION 6

1. Cari German uses gas to heat her home. She has accumulated the following information regarding her monthly gas bill and monthly heating degree-days. The heating degree-days value for a month is found by first subtracting the average temperature for each day from 65 degrees and then summing these daily amounts together for the month.

Month Heating Degree-Days Gas Bill

February 1,900 $254

April 600 $101

2. What will be the increase in Cari's monthly gas bill per heating degree-day using the high-low method?

$0.3309

$0.1177

$46.00

$153.00

1 points

QUESTION 7

1. The Apollo Delivery Service has the following information about its truck fleet miles and operating costs:

Year Miles Operating Costs

2011 250,000 $160,000

2012 300,000 $175,000

2013 350,000 $210,000

2.

What is the best estimate of fixed costs for fleet operating expenses in 2014 using the high-low method?

$100,000

$ 35,000

$175,000

$ 50,000

1 points

QUESTION 8

1. The Fairmont Machine Shop wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data:

Month Cost of Electricity (Y) Direct Labor-Hours (X)

January $14,000 1,500

April $15,000 1,700

July $17,000 2,000

October $14,500 1,600

2.

What would be the best equation using the high-low method?

Y = $4,000 + $7X

Y = $0 + $9X

Y = $1,000 + $8X

Y = $5,000 + $6X

1 points

QUESTION 9

1. Depreciation of a copy machine in the Human Resource Department would best be classified as what type of cost?

Variable Cost

Fixed cost

Mixed cost

Step cost

1 points

QUESTION 10

1. Really Fast Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years:

Year Miles Operating Costs

2009 110,000 $390,000

2010 140,000 $420,000

2011 100,000 $360,000

2012 130,000 $410,000

2013 170,000 $450,000

2. Using the high-low method, what is the cost estimate for variable costs for 2014?

$1.29

$2.00

$1.60

$1.50

1 points

QUESTION 11

1. Really Fast Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years:

Year Miles Operating Costs

2009 110,000 $390,000

2010 140,000 $420,000

2011 100,000 $360,000

2012 130,000 $410,000

2013 170,000 $450,000

2. Using the high-low method, what is the cost estimate for fixed costs for 2014?

$200,000

$140,000

$210,000

$230,700

1 points

QUESTION 12

1. Wesley's income statement is as follows:

Sales (10,000 units) $150,000

Less variable costs - 48,000

Contribution margin $102,000

Less fixed costs - 24,000

Net income $ 78,000

2. What is the unit contribution margin?

$12.00

$ 7.20

$ 4.80

$10.20

1 points

QUESTION 13

1. Wesley's income statement is as follows:

Sales (10,000 units) $150,000

Less variable costs - 48,000

Contribution margin $102,000

Less fixed costs - 24,000

Net income $ 78,000

2.

What is the contribution margin ratio?

167 percent

68 percent

40 percent

60 percent

1 points

QUESTION 14

1. Wesley's income statement is as follows:

Sales (10,000 units) $150,000

Less variable costs - 48,000

Contribution margin $102,000

Less fixed costs - 24,000

Net income $ 78,000

2. If sales increase by 1,000 units, profits will:

Increase by $12,000

Increase by $10,200

Increase by $4,800

Increase by $8,000

1 points

QUESTION 15

1. Eva Company sells one product at a price of $25 per unit. Variable expenses are 40 percent of sales, and fixed expenses are $25,000. The sales dollars level required to break even are:

$ 2,500

$10,000

$33,333

$41,667

1 points

QUESTION 16

1. Determine the unit break-even point, assuming fixed costs are $60,000 per period, variable costs are $16.00 per unit, and the sales price is $25.00 per unit.

5,000

6,667

15,000

12,000

1 points

QUESTION 17

1. Buckbeak Corporation had the following income statement for 2014:

Sales $50,000

Less variable costs - 28,000

Contribution margin $22,000

Less fixed costs - 16,000

Net income $ 6,000

2. Buckbeak's 2014 operating leverage is:

0.333

2.000

3.667

2.333

1 points

QUESTION 18

1. The Snape Corporation has the following data for 2014:

Selling price per unit $10

Variable costs per unit $6

Fixed costs $20,000

Units sold 12,000

2. Snape's 2014 operating leverage is:

0.50

2.00

4.00

1.71

1 points

QUESTION 19

1. The following costs related to Summertime Company for a relevant range of up to 20,000 units annually:

Variable Costs:

Direct materials $5.00

Direct labor 1.50

Manufacturing Overhead 2.50

Selling and administrative 3.00

Fixed Costs:

Manufacturing overhead $20,000

Selling and Administrative 10,000

2. The selling price per unit of product is $15.00. At a sales volume of 15,000 units, what is the total profit for Summertime Company?

$ 30,000

$ 15,000

$225,000

$300,000

1 points

QUESTION 20

1. The following information is available for Bluewood Corporation for a sales volume of 500 stereo speakers for the past month:

Total Per Unit

Sales $225,000 $450

Less: variable expenses 80,000 160

Contribution margin $145,000 $290

Less: fixed expenses $ 35,000

Net operating income $110,000

2. What is the contribution margin ratio?

12.0%

30.0%

40.0%

64.4%

1 points

QUESTION 21

1. The following information is available for Bluewood Corporation for a sales volume of 500 stereo speakers for the past month:

Total Per Unit

Sales $225,000 $450

Less: variable expenses 80,000 160

Contribution margin $145,000 $290

Less: fixed expenses $ 35,000

Net operating income $110,000

2. If sales increase by $51,750, net income will increase by what amount?

$ 6,000

$ 8,000

$20,000

$33,350

1 points

QUESTION 22

1. The Chateau Company manufactures 4,000 telephones per year. The full manufacturing costs per telephone are as follows:

Direct materials $ 4

Direct labor 16

Variable manufacturing overhead 12

Average fixed manufacturing overhead 12

Total $44

2.

The Quick Assembly Company has offered to sell Chateau 4,000 telephones for $31 per unit. If Chateau accepts the offer, $20,000 of fixed overhead will be eliminated. Chateau should:

Make the telephones; the savings is $4,000

Buy the telephones; the savings is $35,000

Buy the telephones; the savings is $24,000

Make the telephones; the savings is $24,000

1 points

QUESTION 23

1. Black Cat Corporation manufactures a product with the following full unit costs at a volume of 4,000 units:

Direct materials $200

Direct labor 80

Manufacturing overhead (30% variable) 150

Selling expenses (50% variable) 50

Administrative expenses (10% variable) 80

Total per unit $560

2.

A company recently approached Black Cat's management with an offer to purchase 450 units for $550 each. Black Cat currently sells the product to dealers for $800 each. Black Cat's capacity is sufficient to produce the extra 450 units. No selling expenses would be incurred on the special order. If Black Cat's management accepts the offer, profits will:

Decrease by $120,000

Increase by $66,800

Increase by $97,650

Decrease by $24,000

1 points

QUESTION 24

1. Georgia Manufacturing Company produces products A, B, C, and D through a joint process. The joint costs amount to $250,000.

Product UnitsProduced Sales Value

at Split-Off Additional Costs

of Processing Sales ValueAfter Processing

A 1,500 $20,000 $5,000 $30,000

B 2,500 $60,000 $6,000 $70,000

C 2,000 $40,000 $8,000 $50,000

D 3,000 $80,000 $12,000 $90,000

2.

If A is processed further, profits of A will:

Decrease by $45,000

Increase by $10,000

Increase by $25,000

Increase by $5,000

1 points

QUESTION 25

1. Clary Corporation sells 2,000 units of product Y per day at $2.00 per unit. Clary has the option of processing the product further for additional costs of $1,000 per day to produce product Z, which sells for $2.90 per unit. If Clary processes product Y further to produce product Z, the company's net income will:

Decrease by $800 per day

Decrease by $1,000 per day

Increase by $800 per day

Increase by $1,800 per day

1 points

QUESTION 26

1. The Cornell Milling Company manufactures an intermediate product identified as W1. Variable manufacturing costs per unit of W1 are as follows:

Direct materials $ 5

Direct labor $15

Variable manufacturing overhead $10

2.

Ithaca Tools has offered to sell Cornell Milling 10,000 units of W1 for $40 per unit. If Cornell Milling accepts the offer, $50,000 of fixed manufacturing overhead will be eliminated. Applying differential analysis to the situation, Cornell Milling should:

Buy W1; the savings is $100,000

Buy W1; the savings is $50,000

Make W1; the savings is $100,000

Make W1; the savings is $50,000

1 points

QUESTION 27

1. Curve Company has collected the following information:

Cost to buy one unit $48

Production costs per unit:

Direct materials $22

Direct labor $16

Variable manufacturing overhead $2

Total fixed manufacturing overhead $190,000

2.

What level of production is needed for Curve to be indifferent between making or buying the part, assuming it can eliminate $150,000 of fixed costs?

22,500 units

16,250 units

13,000 units

18,750 units

1 points

QUESTION 28

1. In an effort to achieve short-run profit maximization, limited resources should first be allocated to the product with:

The highest contribution margin per unit

The highest contribution per unit of constraining factor

The highest selling price per unit of constraining factor

The lowest cost per unit of constraining factor

1 points

QUESTION 29

1. A balanced scorecard is:

An evaluation process that focuses on productivity

A performance measurement system that is strictly directed toward sales growth

A performance measure that evaluates multiple categories related to organizational goals

A series of checks and balances designed to be mutually cooperative with the financial statements

1 points

QUESTION 30

1. If the International Division of Latin American Products had an investment turnover of 2.7 and a return on sales of 0.24, the return on investment would be:

26.7%

52.8%

64.8%

384.0%