Peaceful Pastures
Mid-term Exam |
Page: | 1 2 3 | 1. | Question : | (TCO 1) The goal of managerial accounting is to provide information that managers need for | | | Student Answer: | | planning. | | | | control. | | | | decision making. | | | | All of the above answers are correct. | | Instructor Explanation: | Chapter 1, Page 4 | | | | Points Received: | 4 of 4 | | Comments: | | | | 2. | Question : | TCO 1) Which of the following statements regarding fixed costs is true? | | | Student Answer: | | When production increases, fixed cost per unit increases. | | | | When production decreases, total fixed costs decrease. | | | | When production increases, fixed cost per unit decreases. | | | | When production decreases, total fixed costs increase. | | Instructor Explanation: | Chapter 1, Page 9 | | | | Points Received: | 4 of 4 | | Comments: | | | | 3. | Question : | (TCO 1) A retailer purchased some trendy clothes that have gone out of style and must be marked down to 40% of the original selling price in order to be sold. Which of the following is a sunk cost in this situation? | | | Student Answer: | | the current selling price | | | | the original selling price | | | | the original purchase price | | | | the anticipated profit | | Instructor Explanation: | Chapter 1, Page 9 | | | | Points Received: | 4 of 4 | | Comments: | | | | 4. | Question : | (TCO 1) Shula’s 347 Grill has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,700; depreciation, $800; and other fixed costs, $600. Each steak dinner sells for $14.00 each. How much is the budgeted variable cost per unit? | | | Student Answer: | | $5.80 | | | | $7.74 | | | | $6.68 | | | | $3.25 | | Instructor Explanation: | Chapter 1,
Page: | 1 2 3 | 1. | Question : | (TCO 1) The goal of managerial accounting is to provide information that managers need for | | | Student Answer: | | planning. | | | | control. | | | | decision making. | | | | All of the above answers are correct. | | Instructor Explanation: | Chapter 1, Page 4 | | | | Points Received: | 4 of 4 | | Comments: | | | | 2. | Question : | TCO 1) Which of the following statements regarding fixed costs is true? | | | Student Answer: | | When production increases, fixed cost per unit increases. | | | | When production decreases, total fixed costs decrease. | | | | When production increases, fixed cost per unit decreases. | | | | When production decreases, total fixed costs increase. | | Instructor Explanation: | Chapter 1, Page 9 | | | | Points Received: | 4 of 4 | | Comments: | | | | 3. | Question : | (TCO 1) A retailer purchased some trendy clothes that have gone out of style and must be marked down to 40% of the original selling price in order to be sold. Which of the following is a sunk cost in this situation? | | | Student Answer: | | the current selling price | | | | the original selling price | | | | the original purchase price | | | | the anticipated profit | | Instructor Explanation: | Chapter 1, Page 9 | | | | Points Received: | 4 of 4 | | Comments: | | | | 4. | Question : | (TCO 1) Shula’s 347 Grill has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,700; depreciation, $800; and other fixed costs, $600. Each steak dinner sells for $14.00 each. How much is the budgeted variable cost per unit? | | | Student Answer: | | $5.80 | | | | $7.74 | | | | $6.68 | | | | $3.25 | | Instructor Explanation: | Chapter 1,