ACCT 346 Final Exam

ACCT 346 Final Exam

Page 1
1.(TCO 1) A difference between
actual costs and planned costs
2.(TCO 1) Which of the
following is not likely
to be a fixed cost?
3.(TCO 2) Which of the
following is not a manufacturing cost?
4.(TCO 2) A job-order
costing system is likely used by a
5.(TCO 3) Equivalent units
are calculated by
6.(TCO 3) The Freedom
Corporation’s painting department had a beginning inventory of 580 units, which
had direct material costs of $22,715. During June, 9,290 units were started and
costs of $1,268,085 were incurred for direct material. Ending inventory
consists of 1,000 units, which are 35% complete with respect to direct
material. What is the cost per equivalent unit for direct material?
7.(TCO 4) Which of the
following is not an assumption of C-V-P analysis?
8.(TCO 4) The contribution
margin per unit is the difference between
9.(TCO 5) Full costing
10.(TCO 5) Which of the
following is not true
when units sold exceed units produced?
11.(TCO 6) Cost-plus
contracts are common in which of the following industries?
12.(TCO 6) Which of the
following is not generally true when a company compares ABC and traditional
costing?
13.(TCO 7) Fixed costs that
will be eliminated if a particular course of action is undertaken are called

Page 2
1.(TCO 7) Two or more
products that result from common inputs are called
2.(TCO 8) Activity based
pricing seeks to
3.(TCO 8) When deciding to
accept or reject a special order, which of the following costs would most
likely not be relevant?
4.(TCO 9) Present value
techniques
5.(TCO 9) The internal
rate of return
6.(TCO 10) A method of
budget preparation that requires all budgeted amounts to be justified by the
department, even if the amounts were supported in prior periods, is called
7.(TCO 10) Which budget is
prepared first?
8.(TCO 10) The difference
between standard costs and budgeted costs is that standard costs
9.(TCO 10) The overhead
volume variance indicates that
10.(TCO 10) A subunit that
has responsibility for controlling cost but not revenues is a(n)
11.(TCO 10) Which of the
following is not an
advantage of decentralization for a company?
12.(TCO 10) The ratio that
measures the return earned independently of how the firm is financed is the

Page 3
1.(TCO 1) Distinguish between product
costs and period costs. Define both types of costs and provide examples.
2.(TCO 6) Pacific Airlines
has three service departments; ticketing, baggage handling, and aircraft
maintenance. Costs of these departments are allocated to two revenue producing
departments, domestic and international flights. Costs for the service
departments are not separated into fixed and variable and the totals
are as follows:
3.(TCO 10) Gina’s Boutique
makes custom jewelry. One item, the guru necklace, is a best seller and
sales in units for the first quarter are as follows:
4.(TCO 2) Singleton Company is
trying to determine a predetermined manufacturing overhead. Estimated
overhead for the upcoming year is $600,000. Budgeted machine hours are
120,000 hours, and budgeted labor hours are 15,000 hours at a rate of $20.00
per hour. Compute the predetermined overhead rate based on:

Page 4
1.(TCO 9) A project will
require an initial investment of $600,000 and is expected to generate the
following cash flows:
2.(TCO 4) Legal Docs Inc is a
legal services firm that files incorporation papers for small
businesses. They charge $1,000 per application. This year’s income
statement shows the following:
3.(TCO 5) The following
data has been taken from Air-Tite company in its first year of business.