SampleCostExam1_1

SampleCostExam1_1 - Central Missouri State University Cost...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Central Missouri State University SAMPLE EXAM #1 A Sample of the Types of Questions Dr. Fessler Asks on His Exams. .. (30 minute time limit) 1. At a breakeven point of 400 units sold, the total variable costs were $400 and the total fixed costs were $200. What will the 401st unit sold contribute to income before income taxes? a. $0 b. $0.50 c. $1.00 d. $1.50 e. $200 2. In a make or buy decision: a. Only the variable costs are relevant b. Only the fixed costs are relevant c. Both the variable costs and the fixed costs which will continue regardless of the decision are relevant d. Both the variable costs and the fixed costs which are avoidable are relevant e. All variable and fixed costs are relevant 3. The Letter Company makes products A and B in a joint process from a single input, R. During a typical production run, 50,000 units of R yield 20,000 units of A and 30,000 units of B at the split-off point. Joint production costs total $90,000 per production run. The unit selling price for A is $4.00 and for B is $3.80 at the split-off point. However, B can be processed further at a total cost of $60,000 and then sold for $7.00 per unit. In a decision between selling B at the split-off point or processing B further,
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/08/2010 for the course ACCT 3506 taught by Professor Mark during the Spring '10 term at UCM.

Page1 / 5

SampleCostExam1_1 - Central Missouri State University Cost...

This preview shows document pages 1 - 2. Sign up to view the full document.

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