Exam 2 Practice - Practice Questions for Exam 2(Chapters 2 24 25 and Appendix B These practice questions do not cover every topic that may appear

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Practice Questions for Exam 2 (Chapters 2, 24, 25 and Appendix B) These practice questions do not cover every topic that may appear on the actual exam, but they should be a part of your exam preparation. You should also study your class notes, homework, group activities, practice problems as well as the assigned reading from the textbook. Time value of money tables will be provided on the exam. 01. Which department is often responsible for a direct materials variance based on purchase price? A. The accounting department B. The production department C. The purchasing department D. The budgeting department 02. When deciding whether to keep or replace equipment which of the following would be considered a sunk cost? A. Cost savings from the purchase of the new equipment B. Cost of the new equipment C. Cost of the old equipment D. Trade-in value of the old equipment 03. A planning budget based on a single predicted amount of sales or production volume is called a: A. Sales budget. B. Standard budget. C. Flexible budget. D. Fixed budget. E. Variable budget. 04. When collection is made on Accounts Receivable, A. total assets will remain the same. B. equity will increase. C. total assets will increase. D. total assets will decrease. 05. The amount you must deposit now in your savings account, paying 6% interest, in order to accumulate $3,000 for a down payment 5 years from now on a new car (rounded to the nearest whole dollar) is A. $600 B. $2,242 C. $2,239 D. $2,100 06. Which of the following statements is correct concerning the comparison of differences between actual and planned results? A. The difference must be reported on external financial statements. B. The differences always require investigation. C. It reflects information from the static budget. D. It enables managers to take corrective action when differences are significant.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
07. Product A has a sales price of $10 per unit. Based on a 10,000-unit production level, the variable costs are $6 per unit and the fixed costs are $3 per unit. Using a flexible budget for 12,500 units, what is the budgeted operating income from Product A?
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/31/2009 for the course ACC 310F taught by Professor Verduzco during the Fall '07 term at University of Texas at Austin.

Page1 / 6

Exam 2 Practice - Practice Questions for Exam 2(Chapters 2 24 25 and Appendix B These practice questions do not cover every topic that may appear

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online