Exam 1
EXAM 1
Question 1 1.5 out of 1.5 points
Managerial accounting stresses accounting concepts and procedures that are relevant to preparing reports for
Selected Answer: internal users of accounting information.
Correct Answer: internal users of accounting information.
Question 2 1.5 out of 1.5 points
The principle that managers follow when they only investigate departures from the plan that appear to be significant is commonly known as
Selected Answer: management by exception.
Correct Answer: management by exception.
Question 3 1.5 out of 1.5 points
Which of the following costs does not change when the level of business activity changes?
Selected Answer: total fixed costs
Correct Answer: total fixed costs
Question 4 1.5 out of 1.5 points
Which of the following is not likely to be a fixed cost?
Selected Answer: direct materials
Correct Answer: direct materials
Question 5 1.5 out of 1.5 points
A sunk cost is a cost
Selected Answer: incurred in the past which is not relevant to present decisions.
Correct Answer: incurred in the past which is not relevant to present decisions.
Question 6 1.5 out of 1.5 points
In a period when anticipated production is 10,000 units, budgeted variable costs are $85,000 and budgeted fixed costs are $45,000. If 12,000 units are actually produced, what is the expected total cost?
Selected Answer: $147,000
Correct Answer: $147,000
Question 7 1.5 out of 1.5 points
Variable cost per unit
Selected Answer: does not change when the number of units produced increases.
Correct Answer: does not change when the number of units produced increases.
Question 8 1.5 out of 1.5 points
You own a car and are trying to decide whether or not to trade it in and buy a new car. Which of the following costs is an opportunity cost in this situation?
Selected Answer: the trip to Europe that you will not be able to take if you buy the car
Correct Answer: the trip to Europe that
Question 1 1.5 out of 1.5 points
Managerial accounting stresses accounting concepts and procedures that are relevant to preparing reports for
Selected Answer: internal users of accounting information.
Correct Answer: internal users of accounting information.
Question 2 1.5 out of 1.5 points
The principle that managers follow when they only investigate departures from the plan that appear to be significant is commonly known as
Selected Answer: management by exception.
Correct Answer: management by exception.
Question 3 1.5 out of 1.5 points
Which of the following costs does not change when the level of business activity changes?
Selected Answer: total fixed costs
Correct Answer: total fixed costs
Question 4 1.5 out of 1.5 points
Which of the following is not likely to be a fixed cost?
Selected Answer: direct materials
Correct Answer: direct materials
Question 5 1.5 out of 1.5 points
A sunk cost is a cost
Selected Answer: incurred in the past which is not relevant to present decisions.
Correct Answer: incurred in the past which is not relevant to present decisions.
Question 6 1.5 out of 1.5 points
In a period when anticipated production is 10,000 units, budgeted variable costs are $85,000 and budgeted fixed costs are $45,000. If 12,000 units are actually produced, what is the expected total cost?
Selected Answer: $147,000
Correct Answer: $147,000
Question 7 1.5 out of 1.5 points
Variable cost per unit
Selected Answer: does not change when the number of units produced increases.
Correct Answer: does not change when the number of units produced increases.
Question 8 1.5 out of 1.5 points
You own a car and are trying to decide whether or not to trade it in and buy a new car. Which of the following costs is an opportunity cost in this situation?
Selected Answer: the trip to Europe that you will not be able to take if you buy the car
Correct Answer: the trip to Europe that