Mid-Term A - CONCORDIA UNIVERSITY DEPARTMENT OF ACCOUNTANCY...

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CONCORDIA UNIVERSITY MANAGERIAL ACCOUNTING DEPARTMENT OF ACCOUNTANCY COMM 305 & ACCO 240 JOHN MOLSON SCHOOL OF BUSINESS ALL SECTIONS ALL SECTIONS MID TERM EXAMINATION FALL 2006 PLEASE READ THIS PAGE – IT CONTAINS IMPORTANT INFORMATION 1. This examination will last Three (3) hours and consists of Five (5) Questions printed on Nine (9) pages including this page. Make sure your copy of the exam is complete before starting. 2. Write all your answers (including answers to multiple-choice statements) in the lined examination answer booklet that has been provided to you separately. You may answer the Questions in any order. In front of the booklet place the number associated to the order in which they are done. 3. Your answers may be written in pencil or ink. 4. Read the Questions carefully and budget your time carefully. Show details of all work and calculations in order to benefit from part marks , except for Multiple-choice questions. Attempt all Questions. 5. This is a closed book examination; no reference to notes, etc. is allowed. However, a silent hand-held four-function calculator and one standard (not electronic) dictionary are permitted. 6. Invigilators will not answer questions , unless you think there is an error in the examination questionnaire. 7. When you have finished submit your exam booklet(s) and this questionnaire. Please enumerate your exam booklets. Question Topic Marks 1 Multiple-choice 22.5 2 Activity costing 17.5 3 Job cost and manufacturing cost 20 4 Process costing 20 5 CVP analysis 20 1
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Total 100 2
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QUESTION 1. (22.5, 15 multiple choice questions 1.5 marks each) 40 minutes Choose the best answer for each of the following. Write your answer only in the lined booklet that has been provided to you separately. 1. Ed Green Corporation has two divisions; Outdoor Sports and Indoor Sports. The sales mix is 60% for Outdoor Sports and 40% for Indoor Sports. Green incurs $2,420,000 in fixed costs. The contribution margin ratio for the Outdoor Sports Division is 40%, while for the Indoor Sports Division it is 50%. The breakeven point in dollars is: a. $985,600. b. $4,869,565. c. $4,977,777. d. $5,500,000. e. None of the above. 2. Which of the following is not a benefit of activity-based costing? a. More accurate product costing b. Enhanced control over overhead costs c. Better management decisions d. Less costly to use e. None of the above. 3. Phi Kappa is planning to hold a seminar for students at the University Centre. It has two options: OPTION 1: Fixed rental cost of $1,000 and $12 per person for books or OPTION 2: Fixed rental cost of $3,000 and $8 per person for books Tickets will be $5 per student. Other items will be donated by recruiters wishing to network with students. Which option will cause the biggest loss if very few students attend? a.
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Mid-Term A - CONCORDIA UNIVERSITY DEPARTMENT OF ACCOUNTANCY...

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