BA225 Final ExamSol

BA225 Final ExamSol - BA225 Final Exam (A+) Guaranteed...

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BA225 Final Exam (A+) Guaranteed Points Awarded 100.00 Points Missed 0.00 Percentage 100.0% 1. Johansson Company developed the following static budget at the beginning of the company's accounting period: If actual production totals 8,400 units, the flexible budget would show variable costs of: A) $16,400. B) $ 4,000. C) $ 4,100. D) $4,200. Points Earned: 2.0/2.0 Correct Answer(s): D 2. Pace Company makes computer chips. Sam is manager of the company's maintenance department. Because his maintenance technicians are so well trained in maintaining expensive and sensitive circuit board stamping equipment, Sam has been authorized to contract to perform maintenance for outside customers. In this company, the maintenance department is likely organized as: A) a cost center. B) a revenue center. C) a profit center. D) an investment center. Points Earned: 2.0/2.0 Correct Answer(s): C 3. Which of the following would NOT be represented in the financing activities section of the statement of cash flows? A) Purchased a new office building. B) Purchased treasury stock.
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C) Made installment payment on long-term note payable. D) Issued preferred stock. Points Earned: 2.0/2.0 Correct Answer(s): A 4. A customary assumption in capital budgeting analysis is that: A) the desired rate of return includes the effects of compounding. B) the cash inflows generated by the investment are reinvested at the desired rate of return. C) annual cash flows occur at the end of each period. D) All of the above Points Earned: 2.0/2.0 Correct Answer(s): D 5. Lighthouse Tours provide seven-day guided tours along the New England coast. The company pays its guides a total of $100,000 per year. The average cost of supplies, lodging and food per customer is $500. The company expects a total of 500 customers during the period January - June, and a total of 1,500 customers from July through December. Lighthouse wants to earn $200 per customer. For promotional reasons the company desires to charge the same price throughout the year. Based on this information, what is the correct price per customer? (round to nearest dollar) A) $550 B) $600 C) $750 D) $800 Points Earned: 2.0/2.0 Correct Answer(s): C 6. If a company misclassifies a general, selling and administrative cost as a product cost in a period when production exceeds sales A) net income will be understated. B) total assets will be understated. C) cash flow will be unaffected. D) All of the above. Points Earned: 2.0/2.0 Correct Answer(s): C 7. Moore Company allocates overhead on the basis of direct labor hours. It allocates overhead costs of $6,400 to two different jobs as follows: Job 1: (10 hours) = $3,200 Job 2: (10 hours) = $3,200 Assume that, then, the production process for Job 1 was automated. Now Job 1 requires only 2 hours of direct labor but four hours of mechanical processing. As a result, total overhead increases to $8,500. With the change in the production process for job 1, A) The amount of overhead assigned to each product will increase. B) The amount of overhead assigned to Job 2 will increase.
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BA225 Final ExamSol - BA225 Final Exam (A+) Guaranteed...

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