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

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