Practice Test 2 New for Summer 2010 (1)

Practice Test 2 New for Summer 2010 (1) - BUS 202 Spring...

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BUS 202 Spring 2010 Test 2 Student: ___________________________________________________________________________ 1. Expense A is a fixed cost; expense B is a variable cost. During the current year the activity level has increased, but is still within the relevant range. In terms of cost per unit of activity, we would expect that: A. expense A has remained unchanged. B. expense B has decreased. C. expense A has decreased. D. expense B has increased. 2. Given the cost formula Y = $12,000 + $6X, total cost at an activity level of 8,000 units would be: A. $20,000 B. $60,000 C. $12,000 D. $48,000 3. Kalbach Corporation, a manufacturing company, has provided the following financial data for November: The company had no beginning or ending inventories. The contribution margin for November was: A. $285,000 B. $166,000 C. $310,000 D. $36,000
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4. Pilkinton Corporation has provided its contribution format income statement for July. The company produces and sells a single product. If the company sells 10,300 units, its total contribution margin should be closest to: A. $49,211 B. $391,400 C. $407,400 D. $376,200 5. North Company sells a single product. The product has a selling price of $30 per unit and variable expenses of 70% of sales. If the company's fixed expenses total $60,000 per year, then it will have a break-even of: A. $60,000 B. $85,714 C. $42,000 D. $200,000 Hurst Co. manufacturers and sells a single product. Price and cost data regarding this product are as follows: 6. The break-even point in units per year is: A. 15,200 units B. 26,600 units C. 38,000 units D. 40,000 units
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7. The standards that allow for no machine breakdowns or other work interruptions and that require peak efficiency at all times are referred to as: A. normal standards. B. practical standards.
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This note was uploaded on 06/04/2011 for the course ACCOUNTING 2156 taught by Professor Cheryl during the Spring '09 term at Central Community College.

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Practice Test 2 New for Summer 2010 (1) - BUS 202 Spring...

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