2510 Midterm
YORK UNIVERSITY Faculty of Liberal Arts & Professional Studies; School of Administrative Studies ADMS2510 3.0 Mid-Term Examination #2 Sunday 27 rd November 2011: 10am - noon Instructors: Alison Beavis, John Parkinson Location: Section: A
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Instructions: a. b. c. d. e. f. g.
CLH I E I L D F L
Day/time Tuesday 4-7 Thursday 4-7 Monday 7-10 Wednesday 4-7 Internet section (separate exam) Friday 11.30 -2.30 Monday 4-7
You must complete the Scantron sheet with a pencil. Put your name and student number at the top of the Scantron sheet provided. This is a closed book examination and no collaboration is allowed. There are of 50 questions in total; they are equally weighted. Answer all the questions on the Scantron sheet provided. Use the back of a page of the question paper for rough workings. Place your photo identification on your desk during the examination to facilitate verification.
Name: - - - - - - - - - - - Date: 1. In the preparation of financial statements using variable costing, fixed manufacturing overhead is treated as a period cost. A) True B) False 2. Under variable costing, the unit product cost contains some fixed manufacturing overhead cost. A) True B) False 3. When the number of units in work~in-process and finished goods inventories increase, absorption costing operating income will typically be greater than variable costing operating income. A) True B) False 4. Sales volume is the only driver of operating income under absorption costing. A) True B) False 5. Since variable costing emphasizes costs by behaviour, it works well with cost-volume profit analysis. A) True B) False 6. Under variable costing, it may be possible to report a positive operating income even if the company sells less than the break-even volume of sales. A) True B) False 7. During the most recent year, Evans Company had operating income of $90,000 using absorption costing and $84,000 using variable costing. The
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D
E F
G
H
Instructions: a. b. c. d. e. f. g.
CLH I E I L D F L
Day/time Tuesday 4-7 Thursday 4-7 Monday 7-10 Wednesday 4-7 Internet section (separate exam) Friday 11.30 -2.30 Monday 4-7
You must complete the Scantron sheet with a pencil. Put your name and student number at the top of the Scantron sheet provided. This is a closed book examination and no collaboration is allowed. There are of 50 questions in total; they are equally weighted. Answer all the questions on the Scantron sheet provided. Use the back of a page of the question paper for rough workings. Place your photo identification on your desk during the examination to facilitate verification.
Name: - - - - - - - - - - - Date: 1. In the preparation of financial statements using variable costing, fixed manufacturing overhead is treated as a period cost. A) True B) False 2. Under variable costing, the unit product cost contains some fixed manufacturing overhead cost. A) True B) False 3. When the number of units in work~in-process and finished goods inventories increase, absorption costing operating income will typically be greater than variable costing operating income. A) True B) False 4. Sales volume is the only driver of operating income under absorption costing. A) True B) False 5. Since variable costing emphasizes costs by behaviour, it works well with cost-volume profit analysis. A) True B) False 6. Under variable costing, it may be possible to report a positive operating income even if the company sells less than the break-even volume of sales. A) True B) False 7. During the most recent year, Evans Company had operating income of $90,000 using absorption costing and $84,000 using variable costing. The