Managerial Accounting Exam
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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:
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 a. contribution margin. b. contribution net income. c. contribution gross profit. d. controllable margin. e. none of the above
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 a. 13,333. b. 33,333. c. 20,000. d. 26,667. e. none of the above
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? a. 4,600 units b. 5,600 units c. 6,200 units d. 2,133 units e. none of the above
5. Guerry Company applies overhead on the basis of machine hours. Given the
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:
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 a. contribution margin. b. contribution net income. c. contribution gross profit. d. controllable margin. e. none of the above
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 a. 13,333. b. 33,333. c. 20,000. d. 26,667. e. none of the above
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? a. 4,600 units b. 5,600 units c. 6,200 units d. 2,133 units e. none of the above
5. Guerry Company applies overhead on the basis of machine hours. Given the