Financial Accounting Exam Paper
Name____________________________ Date ACCT 2302 Exam 1 CRN 14948
Multiple Choice: 2 Points each question:
1. An employee is dissatisfied with the resolution of an ethical conflict with his supervisor at his place of employment. According to the Institute of Management Accountants, the employee's next step should be to
A. contact the IMA.
B. contact the next level of management who is not involved in the ethical conflict.
C. make the president of the company aware of the ethical conflict. D. report the incident to the State Board of Accountancy. E. resign from the company.
2. A direct cost is a cost that is:
A. Identifiable as controllable.
B. Traceable to the company as a whole. C. Does not change with the volume of activity. …show more content…
Classifying costs by behavior with changes in volume of activity involves:
A. Identifying fixed cost and variable cost.
B. Identifying cost of goods sold and operating costs. C. Identifying costs as financial or managerial. D. Identifying costs in a physical manner. E. Identifying both quantitative and qualitative cost factors.
4. A classification of costs that determines whether a cost is expensed to the income statement or capitalized to inventory is:
A. Fixed versus variable.
B. Direct versus indirect. C. Financial versus managerial. D. Service versus manufacturing. E. Product versus period.
5. A fixed cost:
A. Requires the future outlay of cash and is relevant for future decision making. B. Does not change with changes in the volume of activity within the relevant range. C. Is directly traceable to a cost object. D. Changes with changes in the volume of activity within the relevant range. E. Is irrelevant for cost-volume-profit and short-term decision making.
6. Last year, Wesson Company sold 10,000 units of its only product. If sales increase by 12% in the current year, how will unit variable cost and unit fixed cost be affected? Unit Variable Cost
Unit Fixed …show more content…
Choice A
B. Choice B C. Choice C D. Choice D E. Choice E
7. Last year, Gordon Company sold 20,000 units of its only product. If sales increase by 20% in the current year, how will unit variable cost and total fixed cost be affected? Unit Variable Cost
Total Fixed Cost
A) Remains constant
Remains constant
B) Increases
Multiple Choice: 2 Points each question:
1. An employee is dissatisfied with the resolution of an ethical conflict with his supervisor at his place of employment. According to the Institute of Management Accountants, the employee's next step should be to
A. contact the IMA.
B. contact the next level of management who is not involved in the ethical conflict.
C. make the president of the company aware of the ethical conflict. D. report the incident to the State Board of Accountancy. E. resign from the company.
2. A direct cost is a cost that is:
A. Identifiable as controllable.
B. Traceable to the company as a whole. C. Does not change with the volume of activity. …show more content…
Classifying costs by behavior with changes in volume of activity involves:
A. Identifying fixed cost and variable cost.
B. Identifying cost of goods sold and operating costs. C. Identifying costs as financial or managerial. D. Identifying costs in a physical manner. E. Identifying both quantitative and qualitative cost factors.
4. A classification of costs that determines whether a cost is expensed to the income statement or capitalized to inventory is:
A. Fixed versus variable.
B. Direct versus indirect. C. Financial versus managerial. D. Service versus manufacturing. E. Product versus period.
5. A fixed cost:
A. Requires the future outlay of cash and is relevant for future decision making. B. Does not change with changes in the volume of activity within the relevant range. C. Is directly traceable to a cost object. D. Changes with changes in the volume of activity within the relevant range. E. Is irrelevant for cost-volume-profit and short-term decision making.
6. Last year, Wesson Company sold 10,000 units of its only product. If sales increase by 12% in the current year, how will unit variable cost and unit fixed cost be affected? Unit Variable Cost
Unit Fixed …show more content…
Choice A
B. Choice B C. Choice C D. Choice D E. Choice E
7. Last year, Gordon Company sold 20,000 units of its only product. If sales increase by 20% in the current year, how will unit variable cost and total fixed cost be affected? Unit Variable Cost
Total Fixed Cost
A) Remains constant
Remains constant
B) Increases