Need help with managerial accounting questions, 25 questions


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Need help with managerial accounting questions, 25 questions total. Managerial Accounting Final.pdf THE GEORGE WASHINGTON UNIVERSITY – Fall 2013 Final Exam 1. Select the incorrect statement regarding costs and expenses. A. Some costs are initially recorded as expenses while others are initially recorded as assets. B. Expenses are incurred when assets are used to generate revenue. C. Manufacturing- related costs are initially recorded as expenses. D. Non- manufacturing costs should be expenses in the period in which they are incurred. 2. During its first year of operations, the Bloomington Cornbelters Corporation (BCC) paid $4,000 for direct materials and $8,500 for production workers’ wages. Lease payments and utilities on the production facilities amounted to $7,500 while general, selling, and administrative expenses totaled $3,000. The company produced 5,000 units and sold 4,000 units at a price of $7.50 a unit. What was BCC’s net income for the first year in operation? A. $11,000 B. $7,000 C. $14,000 D. $20,000 3. Toews’ Jersey and Associates incurred $30,000 of fixed cost and $40,000 of variable cost when 1,000 units of product were made and sold. If the company’s volume doubles, the cost per unit will A. Stay the same B. Double as well C. Increase but will not double D. Decrease 4. For 2013, Bob’s Machine Shack sold 100,000 units of its product for $20 each. The variable cost per unit was $12, and Bob’s margin of safety was 30,000 units. What was the amount of Bob’s total fixed costs? A. $560,000 B. $800,000 C. $1,200,000 D. $360,000 Confidential Page 1 9/1/13 THE GEORGE WASHINGTON UNIVERSITY – Fall 2013 Final Exam 5. Here is some information about the Kane Shaw and Crowford Corporation’s (KSCC) operations. Kane Shaw and Crowford Corporation Direct raw materials used $17,000 Direct labor wages and salaries $33,000 Sales salaries $25,000 Depreciation on manufacturing equipment $3,000 Rent on manufacturing facilities $4,000 Administrative supplies and utilities $5,000 Sales revenue $105,000 Units produced 4,000 Units sold 4,000 KSCC’s work in process inventory at the beginning of 2013 was $12,000, and work in process inventory at the end of 2013 was $10,000. KSCC’s cost of goods manufactured in 2013 equals A. $77,000 B. $89,000 C. $59,000 D. $52,000 6. Here is some information from the internal records of Laxter Pharmaceutical Corporation. Item Total contribution margin at break even Break even Value Sales revenue per unit Value $550,000 105,000 units $51 What is the leverage ratio at the breakeven point if the leverage ratio is defined as total fixed costs divided by total variable costs? A. 0.1145 B. 0.1375 C. 0.2157 D. 0.2750 E. None of these 7. Select the incorrect statement from the following: A. The cost object determines whether a cost is classified as direct or indirect B. The same cost cannot be classified as both direct and indirect C. Relevant costs can include direct and indirect costs D. Direct costs can display a fixed or variable behavior pattern Confidential Page 2 9/1/13 THE GEORGE WASHINGTON UNIVERSITY – Fall 2013 Final Exam 8. At the beginning of 2013, Barksdale Corporation estimated that its total annual fixed overhead costs amount to $50,000. Further, Barksdale estimated that its volume of production would be 2,000 units of product. Based on these estimates, Barksdale computed a predetermined overhead rate that was used to allocate overhead costs to the products made in 2013. As predicted, actual fixed overhead costs did amount to $50,000. However, actual volume of production was only 1,800 units of product. Based on this information alone, A. Product costs used for decision- making in 2013 were accurate B. Product costs used for decision- making in 2013 overstated the costs C. Product costs used for decision- making in 2013 understated the costs D. The answer cannot be determined from the information provided 9. Which of the following statements is true? A. Any co

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