Acc 329 Exam I Fall 2010
Multiple Choice
1. The person MOST likely to use management accounting information is a(n): A. banker evaluating a credit application B. Shareholder evaluating a stock investment C. Governmental taxing authority D. Assembly department supervisor
2. Management accounting A. focuses on estimating future revenues, costs, and other measures to forecast activities and their results. B. provides information about the company as a whole. C. reports information that has occurred in the past that is verifiable and reliable. D. provides information that is generally available only on a quarterly or annual basis.
3. Within the relevant range, if there is a change in the level of the cost driver then A. fixed and variable costs per unit will change. B. fixed and variable costs per unit will remain the same. C. fixed costs per unit will remain the same and variable costs per unit will change. D. fixed costs per unit will change and variable costs per unit will remain the same.
4. The strategy MOST likely to reduce the breakeven point would be to A. increase both the fixed costs and the contribution margin. B. decrease both the fixed costs and the contribution margin. C. decrease the fixed costs and increase the contribution margin. D. increase the fixed costs and decrease the contribution margin.
5. Southwestern College is planning to hold a fundraising banquet at one of the local country clubs. It has two options for the banquet:
OPTION 1: Crestview Country Club a. Fixed rental cost of $1,000. b. $12 per person for food.
OPTION 2: Tallgrass Country Club a. Fixed rental cost of $3,000. b. $8 per person for food.
Southwestern College has budgeted $1,800 for administrative and marketing expenses. It plans
1. The person MOST likely to use management accounting information is a(n): A. banker evaluating a credit application B. Shareholder evaluating a stock investment C. Governmental taxing authority D. Assembly department supervisor
2. Management accounting A. focuses on estimating future revenues, costs, and other measures to forecast activities and their results. B. provides information about the company as a whole. C. reports information that has occurred in the past that is verifiable and reliable. D. provides information that is generally available only on a quarterly or annual basis.
3. Within the relevant range, if there is a change in the level of the cost driver then A. fixed and variable costs per unit will change. B. fixed and variable costs per unit will remain the same. C. fixed costs per unit will remain the same and variable costs per unit will change. D. fixed costs per unit will change and variable costs per unit will remain the same.
4. The strategy MOST likely to reduce the breakeven point would be to A. increase both the fixed costs and the contribution margin. B. decrease both the fixed costs and the contribution margin. C. decrease the fixed costs and increase the contribution margin. D. increase the fixed costs and decrease the contribution margin.
5. Southwestern College is planning to hold a fundraising banquet at one of the local country clubs. It has two options for the banquet:
OPTION 1: Crestview Country Club a. Fixed rental cost of $1,000. b. $12 per person for food.
OPTION 2: Tallgrass Country Club a. Fixed rental cost of $3,000. b. $8 per person for food.
Southwestern College has budgeted $1,800 for administrative and marketing expenses. It plans