ACT5060Midterm-Winter 2011

ACT5060Midterm-Winter 2011 - ACT 5060 Midterm Exam 1 Which...

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ACT 5060 Midterm Exam ___________________________________________________________ 1. Which of the following is not an example of a product cost at a gym? A. Salary paid to instructors. B. Corporate office rent. C. Supplies D. Utility cost in the gymnasium. 2. Gross margin equals: A. Revenues less product costs. B. Revenues less period costs. C. Revenues less selling and administrative expenses. D. Revenues less depreciation expense. 3. Metal used to make components is an example of: A. Direct Labor B. Variable Manufacturing Overhead C. Direct Materials D. Fixed Manufacturing Overhead 4. Which of the following is not an example of a direct material? A. Steel. B. Packaging Materials. C. Leather. D. Canvas. 5. Which account would not be shown under inventory in a manufacturing firm's balance sheet? A. Work-in-Process. B. Merchandising Inventory. C. Finished Goods. D. Held on Consignment. 6. Aspen Company has sales of $2,000,000, cost of goods sold of $200,000, and selling and administrative costs of $500,000. Aspen Company's gross margin is: A. $1,800,000. B. $1,500,000. C. $1,300,000. D. $1,700,000.
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7. Suppose Max's Shuttle Service wants to earn a profit before taxes of $375,000 in the coming year. Max's selling price is $40, its variable cost per unit is $20, and its fixed costs are $150,000. How many tickets must the company sell? A. 26,520 B. 26,250 C. 18,750 D. 11,250 E. 8 A firm performs CVP analysis for three primary purposes: A. calculating measures that help assess operating risk B. evaluating the profit impact of short-term decision alternatives C. profit planning D. All of the Above 9. Which of the following is most likely a primary user of managerial accounting? A. Tax Authorities. B. Employees. C. Creditors. D. Shareholders. 10. Which of the following is a characteristic of financial accounting? A. Periodicity of reporting is often generated on an as-needed basis. B. Focus is on estimates on future performance. C. Governed by Generally Accepted Accounting Principles (GAAP) D. Information relevance valued most. 11 ABC uses which of the following as the denominator volume when calculating allocations rates: A. Unused capacity. B. Budgeted volume. C. Practical capacity. D. Actual volume. 12. ABC Systems: A. Allows us to estimate to cost of capacity resources consumed by each product accurately when capacity costs are grouped into carefully designed cost pools. B. Frequently uses practical capacity as the denominator value when calculating
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ACT5060Midterm-Winter 2011 - ACT 5060 Midterm Exam 1 Which...

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