FINAL.docx - AC 680 Final Exam Question 1 T/F(30 Points...

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AC 680Final ExamQuestion 1 T/F (30 Points) write only the correct answer2.The contribution-margin ratio is calculated as unit contribution margin divided by the selling price per unit.TRUE
3.The difference between budgeted sales revenue and break-even sales revenue is the operatingleverage. .The break-even point is thatlevel of activity where total revenue equals total cost.
4.Cost-volume-profit analysis is based on certain general assumptions. One of these assumptions is that product prices will remain constant as volume varies within the relevant range.
1.The break-even point is thatlevel of activity where total revenue equals total cost.
5.The extent to which an organization uses fixed costs in its cost structure is measured by financial leverage.
6.Fixed manufacturing overhead is not inventoried under absorption costing.
7.Variable manufacturing overhead becomes part of a unit's cost when variable costing is used.
8.Absorption costing is required for tax purposes.
9.When units sold exceed units produced, absorption-costing income will be lower than variable-costing income.
10. For external-reporting purposes, generally accepted accounting principles require that netincome be based on variable costing.
11. The comprehensive set of budgets that serves as a company's overall financial plan is commonly known as the financial budget.
12. A company's sales forecast would likely not consider general economic and industry trends.
13. Sainte Claire Corporation has a highly automated production facility. Production volume and management judgment are the two factors that would likely have the most direct influence on the company's manufacturing overhead budget.
14. The budgeting technique that helps managers assess the company's future and know if they are reaching their performance goals is called life-cycle budgeting.
15. That employees make little effort to achieve budgetary goals is an outcome sometimes associated with participative budgeting.
Question 2 MC (30 Points) write only the correct answer1.Which of the following occurs if a company was able to reduce its variable cost per unit?

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