E3practice - AMIS 212 Module 3 This set of 40 questions in...

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AMIS 212 Module 3 This set of 40 questions, in two parts, some taken from prior examinations, covers topics in Chapters 10, 11, 12, 13, and 14. The purpose of sample multiple choice questions is to acquaint you with the style and substance of typical exam questions on this material. As such, it is an exam preparation resource not a template for the exam on the third module material. Please be aware that: 1. multiple choice format questions are only one of many resources available to prepare for testing events – reading textbook chapters and working through chapter examples, studying the end-of-chapter review problem and accompanying solution, and reviewing assigned homework items and the published solutions may be more powerful methods to increase your understanding of the topics covered in the course. 2. the exam questions used this quarter will be similar but different from these example questions – understanding the main concepts in each chapter is critical to success on the testing events; remembering a sample question may be of some help but the format of questions on the same topic often differs rendering memory a distant second choice to understanding. 3. the answer key is listed on the last page of this document . The Questions: Part 1 1. Fragrance, Inc., has two divisions: the Cologne Division and the Bottle Division. The Bottle Division produces containers that can be used by the Cologne Division. The Bottle Division's variable manufacturing cost is $2, shipping cost to external customers is $0.10, and the external sales price is $3. No shipping costs are incurred on sales to the Cologne Division and the Cologne Division can purchase similar containers in the external market for $2.50, which includes shipping costs. The maximum amount the Cologne Division would be willing to pay for each bottle transferred would be: a. $2.90. b. $2.00. c. $2.50. d. $2.10. Page 1 of 16 10/13/2011
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AMIS 212 Module 3 3. Division A sells soybean paste internally to Division B, which, in turn, produces soybean burgers that sell for $5 per pound. Division A incurs costs of $0.75 per pound, while Division B incurs additional variable costs of $2.50 per pound. What is Division B's contribution margin per pound, assuming the transfer price of the soybean paste is set at $1.25 per pound? a. $0.500 b. $0.875 c. $1.250 d. $1.625 4. The following information pertains to Smith Company: Average operating assets $250,000 Net income 50,000 Sales 500,000 Required rate of return 12 percent The residual income is: a. $50,000. b. $30,000. c. $20,000. d. $60,000. 5. The following information is for West Corporation: Direct Material Standard price per unit of input $20 Actual price per unit of input $18 Standard inputs allowed per unit of output 2 pounds Actual units of input bought and used 7,750 pounds Actual units of output 3,750 units What is the total direct material variance?
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E3practice - AMIS 212 Module 3 This set of 40 questions in...

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