Multiple-Choice: Please circle the best answer

Subject:AccountingPrice:4.87 Bought7

Share With

Multiple-Choice: Please circle the best answer. Each question is worth 3 points. 

1)    Which of the following should not be included as part of manufacturing overhead at a company that makes office furniture?
A.    Sheet steel in a file cabinet made by the company.
B.    Manufacturing equipment depreciation.
C.    Insurance on production equipment.
D.    Taxes on a factory building.

2.    Iadanza Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $195.70 per unit.

The best estimate of the total contribution margin when 6,300 units are sold is:
 A. $752,220
B. $638,190
C. $100,170
D. $177,030

3.    The following data pertains to activity and costs for two months:

Assuming that these activity levels are within the relevant range, the mixed cost for July was:
A. $15,000
 
B. $10,000
C. $35,000
D. $40,000

4.    East Company manufactures and sells a single product with a positive contribution margin. If the selling price and the variable expense per unit both increase 5% and fixed expenses do not change, what is the effect on the contribution margin per unit and the contribution margin ratio?

A.    Option A
B.    Option B
C.    Option C
D.    Option D
5.    The contribution margin ratio is 30% for the Honeyville Company and the break-even point in sales is $150,000. If the company's target net operating income is $60,000, sales would have to be:
A. $200,000
B. $350,000
C. $250,000
D. $210,000
 

6.    The following information relates to Clyde Corporation which produced and sold 50,000 units last month.

There were no beginning or ending inventories. Production and sales next month are expected to be 40,000 units. The company's unit contribution margin next month is expected to be:
A. $16.63
B. $3.10
C. $7.98
D. $13.30

7.    When a credit sale is made with terms of 2/10, n/30 on February 24th, 2012 and the customer's check is received on March 7th, which of the following is true about the March 7 journal entry?
A.    There will be a debit to sales discounts on March 7.
B.    There will be a credit to sales discounts on March 7.
C.    The debit to cash will be more than the credit to accounts receivable on March 7.
D.    The debit to cash will equal the credit to accounts receivable on March 7.

8.    Which of the following statements about a periodic inventory system is true?
A.    Companies determine cost of goods sold only at the end of the accounting period.
 
B.    Companies continuously maintain detailed records of the cost of each inventory purchase and sale.
C.    The periodic system provides better control over inventories than a perpetual system.
D.    The increased use of computerized systems has increased the use of the periodic system.

9.    In a perpetual inventory system, which accounts will the seller credit when merchandise is returned by a customer?
A.    Sales Returns and Allowances and Accounts Receivable
B.    Accounts Receivable and Cost of Goods Sold
C.    Inventory and Cost of Goods Sold
D.    Sales Returns and Allowances and Inventory

10.    Bold Company's 2010 income statement reported total sales revenue of $250,000. During 2010, accounts receivable decreased by $20,000 and accounts payable increased $10,000. How much cash was collected from customers during 2010?
A. $230,000
B. $270,000
C. $250,000
D. $280,000