Once you have completed the exam below, you must enter your answers in the Assignments section of
Blackboard on the answer sheet provided.
Your answer sheet is due by 5pm on Wednesday, December 3, 2008; print or save your conformation page to
verify that your assignment was successfully submitted.
If you have any clarification questions about the exam,
please post a note on the ACC 310F Class Q&A Discussion Board located in the Communication section of
For time value of money questions use the related tables located in Appendix B of the textbook; otherwise, you
should round your factor to the nearest 4 decimals places.
Your final answer should be rounded to the nearest
A company's flexible budget for 12,000 units of production showed sales, $48,000; variable costs, $18,000;
and fixed costs, $16,000. The operating income expected if the company produces and sells 16,000 units is:
02. An opportunity cost:
Is an unavoidable cost.
Requires a current outlay of cash.
Is the lost benefit of choosing an alternative course of action.
Is irrelevant in decision making.
None of the above
03. You decided that its time to start preparing for retirement so you opened an investment account and made an
initial deposit of $10,000.
You are going to retire in 40 years and vow to make a deposit in your retirement
account of $3,600 per year.
If your account earns 8% interest, how much will be in your account when you
Carla’s Coffee sells a variety of coffees and pastries.
In a recent budget performance report, there was a
quantity variance related to milk.
All of the following may help explain that variance except:
A. Several gallons of milk were accidentally allowed to spoil.
B. Milk was purchased from a different supplier than the one normally used.
A case of milk was stolen from the refrigerator.
D. Employees did not use the measuring equipment properly.
E. All of the above
The Olinda Corporation offers its two hundred employees a free membership at Lean & Mean, a local area
The following total costs are related to that contract (a) initial membership fee $500 (b)
monthly service charge $9,100 and (c) contract cancellation fee $2,500.
The company is considering