ACC561 Final Exam Complete Solution TEST 3

Question: #6401

1.     _____ refers to accounting information developed for managers
     within an organization.

     a.     Internal auditing
     b.     Managerial accounting
     c.     Financial accounting
d.     Tax accounting

2.     Ethical accountants are important to society because _____.
a.     they pay their taxes
b.     the information produced is reliable
c.     they will not go to prison and waste taxpayers’ money
d.     none of these answers is correct

3.     Performance reports _____.

     a.     are quantitative expressions of action plans
b.     provide feedback by comparing results with plans and by highlighting deviations from plans
c.     are deviations from a plan
     d.     ignore areas that are presumed to be running smoothly

4.     Output measures of both resources and activities are _____.

     a.     cost drivers
     b.     stages of production
     c.     fixed activities
d.     variable activities

5.     An accountant may have difficulty classifying costs as fixed or variable because _____.

     a.     costs may behave in a nonlinear way
     b.     costs may be affected by more than one cost driver
     c.     the decision situation may cause the costs to be fixed in the short term
     d.     all of these answers are correct

6.      If the proportions in a sales mix change, the _____.

     a.     contribution margin per unit increases
     b.     break even point will remain the same
     c.     cost volume profit relationship also changes
     d.     net income will not be altered

7.      _____ will decrease a company's break-even point.

     a.     Reducing its total fixed costs
     b.     Decreasing contribution margin per unit
     c.    Increasing variable cost per unit
d.     Decreasing the selling price per unit

8.     Costs that change abruptly at intervals of activity because the resources and their costs come in indivisible chunks are called ¬¬¬¬¬_____.

     a.     mixed costs
     b.     variable costs
     c.     fixed costs
     d.     step costs

9.                      _____ arise as a result of strategic decisions about the scale and scope of an
      organization's activities.

     a.     Capacity costs
     b.     Discretionary costs
     c.     Mixed costs
     d.     Engineered costs

10.     _____ is the first step in estimating or predicting costs as a function of appropriate cost drivers.

     a.     Cost measurement
     b.     Cost determination
     c.     Cost behavior investigation
d.     Cost driver identification

Solution: #6409

ACC561 Final Exam Complete Solution TEST 3 From Business Accounting

ACC561 FINAL EXAM TEST 3 1. _____ refers to accounting information developed for managers within an organization. a. Internal auditing b. Managerial accounting c. Financial accounting d. Tax accounting B 2. Ethical accountants are important to society because _____. a. they pay their taxes b. the information produced is reliable c. they will not go to prison and waste taxpayers’ money d. none of these answers is correct B 3. Performance reports _____. a. are quantitative expressions of action plans b. provide feedback by comparing results with plans and by h...