ACCT 203 Summer 2010 Quiz 3 answer key1 (1)

ACCT 203 Summer 2010 Quiz 3 answer key1 (1) - D) Determine...

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ACCT 203 Quiz #3 Summer 2010 Paul Harley TOTAL TIME ALLOWED IS 15 Minutes for this Quiz 1. Mason Company has the following information with regard to the production and sales of product ABC: selling price per unit is $25, total variable cost per unit is $10, total fixed costs are $30,000. What is the breakeven point in units? A) 1,200 B) 2,000 C) 3,000 D) 4,000 E) None of the above. Answer: 25-10=15 cont margin 30,000/15 = 2000 2. Financial budgets include all the following except the: A. Sales budget. B. Budgeted balance sheet. C. Budgeted income statement. D. Cash budget. Answer A. Sales budget is an operating budget 3. The first step in preparing a master budget is: A) Determine the level of total costs expected to be incurred based on prior year actual results. B) Determine if the company has enough cash to support the level of planned activity. C) Determine the sales budget.
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Unformatted text preview: D) Determine the profit margin the company wants to achieve. E) Determine the breakeven point using cost-volume-profit analysis. Answer: C 4. In cost-volume profit analysis (also called breakeven analysis), when the number of units changes, which of the following will also change: A) Total fixed costs B) Total variable costs C) Total sales revenues D) B and C above E) None of the above Answer: D In order for CVP to work, fixed costs have to remain constant. If units change, both revenue and variable costs change. 5. A budget is best described as: A) A formal statement of a company's future plans. B) A master control device. C) An informal statement of company future plans usually expressed in monetary terms. D) The most crucial component of a company evaluation process. E) The minimum acceptable performance level. Answer: A...
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ACCT 203 Summer 2010 Quiz 3 answer key1 (1) - D) Determine...

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