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University of Connecticut
School of Business
Managerial Accounting - Accounting 2101
Exam 2 – SS1 2014 (Some questions have 4 options to select and others have 5)
1.
Consider the following statements about companies that are involved with international operations:
(I) Budgeting for these firms are highly impacted by fluctuating values in foreign currencies.
(II) Multinational firms may encounter hyperinflationary economies.
(III) Such organizations often face changing laws and political climates that affect business activity.
Which of the above statements is (are) true?
A)
I only.
B)
III only.
C)
I and II.
D)
II and III.
E)
I, II, and III.
2.
The master budget for a manufacturing company contains the following components, among others: (1) direct-material budget, (2) direct labor budget, (3) production budget, and (4) cash budget. Which of these components would be prepared first and which would be prepared last within this combination of budgets?
First Last
A)
1
4
B)
1
2
C)
3
4
D)
3
2
E)
4
1
Use the following to answer question 3:
Evergreen Corp. has provided the following data:
Sales per period 1,000 units
Selling price $40 per unit
Variable manufacturing cost $12 per unit
Selling expenses $5,100 plus 5% of selling price
Administrative expenses $3,000 plus 20% of selling price
3.
The margin of safety would be:
A)
$18,000.
B)
$28,560.
C)
$24,000.
D)
$10,000.
E)
None of the above.
4.
The salaries of a manufacturing plant's management are said to arise from:
A)
unit-level activities.
B)
batch-level activities.
C)
facility-level activities.
D)
product-sustaining activities.
E)
direct-cost activities.
5.
An examination of Shelby Corporation's inventory accounts revealed the following information:
Raw materials, June 1: 46,000 pounds
Raw materials, June 30: 51,000 pounds
Purchases of raw materials
School of Business
Managerial Accounting - Accounting 2101
Exam 2 – SS1 2014 (Some questions have 4 options to select and others have 5)
1.
Consider the following statements about companies that are involved with international operations:
(I) Budgeting for these firms are highly impacted by fluctuating values in foreign currencies.
(II) Multinational firms may encounter hyperinflationary economies.
(III) Such organizations often face changing laws and political climates that affect business activity.
Which of the above statements is (are) true?
A)
I only.
B)
III only.
C)
I and II.
D)
II and III.
E)
I, II, and III.
2.
The master budget for a manufacturing company contains the following components, among others: (1) direct-material budget, (2) direct labor budget, (3) production budget, and (4) cash budget. Which of these components would be prepared first and which would be prepared last within this combination of budgets?
First Last
A)
1
4
B)
1
2
C)
3
4
D)
3
2
E)
4
1
Use the following to answer question 3:
Evergreen Corp. has provided the following data:
Sales per period 1,000 units
Selling price $40 per unit
Variable manufacturing cost $12 per unit
Selling expenses $5,100 plus 5% of selling price
Administrative expenses $3,000 plus 20% of selling price
3.
The margin of safety would be:
A)
$18,000.
B)
$28,560.
C)
$24,000.
D)
$10,000.
E)
None of the above.
4.
The salaries of a manufacturing plant's management are said to arise from:
A)
unit-level activities.
B)
batch-level activities.
C)
facility-level activities.
D)
product-sustaining activities.
E)
direct-cost activities.
5.
An examination of Shelby Corporation's inventory accounts revealed the following information:
Raw materials, June 1: 46,000 pounds
Raw materials, June 30: 51,000 pounds
Purchases of raw materials