ACCT2301-E1-sp2009-Solution

ACCT2301-E1-sp2009-Solution - ACCT2301 Spring Semester 2009...

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- ----- ACCT2301 Name Spring Semester 2009 First Interim Exam Student 10 January 29, 2009 FORMA ~ PART 1- Multiple Choice (28 questions at 3 points each). Select the BEST answerfor each question and indicate tl your selection in the appropriate space on the SCANTRON. ,.) C \) '*<I ~ ';1 I. The main focus of managerial accounting is: G9 planning, controlling and decision making. B. the preparation of financial statements for creditors. C. the determination ofnet income. D. documenting cash flows. ·-:lf3 -5 :ttc, 2. Which ofthe following statements is TRUE about the distinction between financial accounting and managerial accounting? External and internal users ofaccounting information have exactly the same information needs. Unlike managerial accounting, financial accounting is governed by generally accepted accounting principles. Managerial accounting provides the best information to external users. Managerial accounting emphasizes the organization as a whole more than financial accounting. -*t, ~/O:it~ 3. The 55-room Palo Duro Lodge decides how many housekeepers it needs to hire based on expected hotel occupancy. The following shows the budgeted housekeeping costs per month at various occupancies: Number ofoccupied rooms Housekeeping costs 0-25 $5,000 26 -40 $10,000 41 - 55 $15,000 Given the above budgeted behavior, what type of cost is housekeeping? A. Fixed cost. S. Variable cost. (§) Step cost. Mixed cost. j.1 :ltc,.:i::t:z. 4. Product costs affect net income: in the period they are incurred. in the period they are paid. in the period in which the product is completed. ® in the period in which the product is sold. ~ -f},1 ::ti.3 5. Which of the following statements is TRUE regarding cost-volume-profit (C-V-P) analysis? The break-even point is the point where total contribution margin equals total variable expenses. ® The break-even point is the point where total contribution margin equals total fixed expenses. The break-even point can usually be determined by simply adding together all ofthe expenses from the income statement. The break-even point is decreased by an increase in the number of units sold.
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2 6. Since Plainview Pizza is open 24 hours a day, its pizza oven is always on and is, therefore, always using natural gas. However, when there is no pizza in the oven, the oven automatically lowers its flame and reduces its natural gas usage by 70%. The cost of natural gas relative to the number of pizzas produced would best be described as a: <9 mixed cost. B. fixed cost. C. step cost. D. variable cost. 7. The executive team of Levelland Industrial Products needs to decide on whether or not to expand its operations to Amarillo next year. Of the following reports, which would be the best source of information available to aid this decision? o The firm's report detailing cost, revenue and demand information on its all ofits products.
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This note was uploaded on 03/31/2009 for the course ACCT 2301 taught by Professor Staff during the Spring '08 term at Texas Tech.

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ACCT2301-E1-sp2009-Solution - ACCT2301 Spring Semester 2009...

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