ACCOUNTING 6321 FINAL EXAM,


Question Description:

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ACCOUNTING 6321 FINAL EXAM, Chapters 7 to 12 Instructions Read the instructions carefully and completely before starting the exam. After reading the instructions, read each question/problem carefully. Identify each requirement per question/problem. This exam is open-book and open notes (your book and your notes, not someone else’s – that’s cheating). Be sure to complete all 19 questions. You will see a large “The end of Final Exam” printed at the end of the test. Solution file: Create your solution file using MS Excel. For the multiple choice questions, simply give the question number and your answer (A,B,C, or D). For True/False, simply give T or F. Do NOT include the question in your solution file. Show each step of your work for the exercises & problems. This will help me give partial credit. Clearly label the answers to your problem. If I cannot easily find your answers, you will not receive credit for them. Save your solution file with the name “6321 Final Exam (your first and last name)”. Submission: You must send the file to me via CLASS EMAIL in Blackboard. Send the solution file using the subject line “Final Exam (your last name)”. Due Date: Your exam is due the earlier of three (3) days (or 72 hours) from the time you downloaded this file or Monday, May 11th at 8am for non-graduating students/Saturday May 9 th at noon for graduating students. Note that Blackboard timestamps when you download the file, so I will know if you turn it in late. I will deduct 5 points for every hour your exam is late, for a maximum of 15 pts per day, so be on time. Cheating: This exam in NOT a collaborative effort. You need to complete the exam on your own efforts without any help from others or the internet. YOU ARE NEITHER TO RECEIVE NOR GIVE HELP ON THIS EXAM! I will give a grade of ZERO to all parties with no appeals for any shared work or plagiarism (or appearance thereof) to any degree on this exam. Depending on the extent of plagiarism or sharing, an F may be given for the ENTIRE exam. For blatant cases, I will give an F for the course. Please do not disappoint me or yourselves. Also, do not share this file with any other students now or in the future. Do not discuss this exam with your classmates until after the due date. In addition, remember the honor pledge: “On my honor, I have followed the DBU Honor Code while completing this exam.” Please take it seriously. Grading: Multiple Choice questions 1-8 are worth 2 points each. Exercises 9-13 are worth 5 pts each. Problems 14 – 19 are worth 10 pts each. You have 1 bonus point built in. Section 1 Multiple Choice/True False – 2 pts each 1. Which of the following statements describes a legitimate disadvantage of cost-based pricing? A) B) C) D) Marginal costs and revenues are difficult to measure. Determining the amount a customer is willing to pay may require estimation. Customers may not be willing to pay the price determined by the procedure. Most cost data are not readily available. 2. A) B) C) D) Generally, the first of the following budgets to be prepared is the: Cash budget Operations budget Sales budget Purchases budget 3. A static budget is a budget prepared before the beginning of the budget period based on expected level of operations; whereas, a flexible budget is prepared after the fact based on actual operations. True or False 4. Assume the following information for a product line: Sales revenue Variable manufacturing costs Fixed manufacturing costs Variable selling/administrative costs Fixed selling/administrative costs $2,200,000 200,000 150,000 120,000 100,000 What is the product line’s contribution margin? A) $1,650,000 B) $1,880,000 C) $1,780,000 D) $ 900,000 5. The accounting rate of return method requires dividing a project’s annual cash inflows by the economic life of the project. True or False 6. Urbana Corporation is considering the p

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