Final Exam B - CONCORDIA UNIVERSITY Course No Examination...

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+ CONCORDIA UNIVERSITY Course: Managerial Accounting, No.: COMM 305 & ACCO. 240 Sections: All Examination: Alternate Final Date: June, 2006 No. of Pages: 9 including the cover page Material Allowed: Non-programmable calculators and dictionaries Special Instructions: Answer all multiple choice questions in the Answer Sheet form no. 4521 Return the exam questions with your answers. Student Name: Student ID No.: Section: Instructor: ACCO240-COMM 305 Alternate Final Exam Summer 2006 page 1
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QUESTION I. 22.5 POINTS SELECT THE BEST ANSWER: 1.5 POINTS EACH QUESTION. 1. A responsibility centre that incurs costs (and expenses) and generates revenues is classified as a(n) a. cost centre. b. revenue centre. c. profit centre. d. investment centre. e. none of the above 2. The most useful measure for evaluating a manager's performance in controlling revenues and costs in a profit centre is 3. Pentecost Corporation desires to earn target net income of $40,000. If the selling price per unit is $30, unit variable cost is $24, and total fixed costs are $160,000, the number of units that the company must sell to earn its target net income is 4. Juniper, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Juniper’s break-even point? 5. Guerry Company applies overhead on the basis of machine hours. Given the following data, calculate overhead applied and the under- or over-application of overhead for the period: Estimated annual overhead cost $600,000 Actual annual overhead cost $575,000 Estimated machine hours 150,000 Actual machine hours 140,000 a. $560,000 applied and $15,000 under-applied b. $600,000 applied and $15,000 over-applied c. $560,000 applied and $15,000 over-applied d. $575,000 applied and neither under- nor over-applied e. none of the above ACCO240-COMM 305 Alternate Final Exam Summer 2006 page 2
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6. Given the following information for Satoko Company: Sales $1,000,000; Controllable Margin $150,000; Average Operating Assets $500,000. The company's ROI is: 7. The starting point of a master budget is the preparation of the: Use the following information for questions 8 and 9. Thorton Company estimates its sales at 80,000 units in the first quarter and that sales will increase by 8,000 units each quarter over the year. The company wants an ending inventory of finished goods equal to 25% of the sales of the following quarter. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale.
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