Accounting 526 Final Exam 2026-2026 ACTUAL
EXAM Newest 2026-2027 Complete 100 Questions
And Correct Detailed Answers (Verified Answers)
Already Graded A+ Brand New Version!!
_____________________________ involves accumulating and reporting revenues and costs on
the basis of the manager who makes the day-to-day decisions about those items. - CORRECT
ANSWER: Responsibility Accounting
_______________________________ involves the preparation of a report for each level of
responsibility, starting at the bottom and working upward through each level. - CORRECT
ANSWER: Responsibility Reporting System
A _____________________ is one that projects budget date at different levels of activity. -
CORRECT ANSWER: Flexible Budget
A ______________________ is one prepared at a single level of activity, generally the activity
level that was used to develop the master budget. - CORRECT ANSWER: Static Budget
A computer system installed last year is an example of:
a.) an avoidable cost
b.) a relevant cost
c.) a sunk cost
d.) a differential cost - CORRECT ANSWER: c.) a sunk cost
A manager of an investment center can improve ROI by:
a.) reducing variable and/or controllable fixed costs
b.) reducing sales
,c.) increasing variable costs
d.) increasing average operating assets - CORRECT ANSWER: a.) reducing variable and/or
controllable fixed costs
A planning function of the budgeting process is that the budget outlines a specific course of
action for the coming period. (True or False) - CORRECT ANSWER: True
amount of increase or decrease in cost that is expected from a course of action as compared with
an alternative - CORRECT ANSWER: Relevant Cost
amount of increase or decrease in revenue expected from a course of action as compared with an
alternative - CORRECT ANSWER: Relevant Revenue
cost that have been incurred in the past and are not relevant to a decision - CORRECT
ANSWER: Sunk Cost
Each of the following budgets is used in preparing the budgeted income statement except for:
a.) direct labor budget
b.) sales budget
c.) capital expenditure budget
d.) selling and administrative budget - CORRECT ANSWER: c.) capital expenditure budget
Employee morale at Dos Santos, Inc., is very high. This type of information is known as:
a.) a qualitative factor
b.) an opportunity cost
c.) a differential factor
d.) a quantitative factor - CORRECT ANSWER: a.) a qualitative factor
, Estimating costs accurately at an early stage in the value chain is crucial to developing a
profitable product. (True or False) - CORRECT ANSWER: TRUE
focuses on the effect of alternative courses of action on the relevant revenues and costs -
CORRECT ANSWER: Incremental Analysis
Managers' motivation and retention can be increased by empowering segment managers to make
decisions is an example of an advantage of _____________________. - CORRECT ANSWER:
Decentralization
Measuring customer profitability only by looking at whether the sales revenue a customer
generates exceeds the cost of goods sold ignores what? - CORRECT ANSWER: it ignores all
selling and administrative costs incurred to provide customer service and support
On a statement of cash flows prepared with the indirect method, financing activities do NOT
include which of the following:
a.) sale of treasury stock
b.) payment of dividends
c.) payment of principal amounts of long-term debts
d.) payment of interest on long-term debts - CORRECT ANSWER: d.) payment of interest on
long-term debts
Positive signs of a successful company as seen on the statement of cash flows do NOT include:
a.) operating activities are the largest source of cash
b.) the sale of a majority of a company's plant assets
c.) investments in property, plant, and equipment
d.) banks are willing to lend money to the company - CORRECT ANSWER: b.) the sale of a
majority of a company's plant assets
Profit center responsibility reports include:
EXAM Newest 2026-2027 Complete 100 Questions
And Correct Detailed Answers (Verified Answers)
Already Graded A+ Brand New Version!!
_____________________________ involves accumulating and reporting revenues and costs on
the basis of the manager who makes the day-to-day decisions about those items. - CORRECT
ANSWER: Responsibility Accounting
_______________________________ involves the preparation of a report for each level of
responsibility, starting at the bottom and working upward through each level. - CORRECT
ANSWER: Responsibility Reporting System
A _____________________ is one that projects budget date at different levels of activity. -
CORRECT ANSWER: Flexible Budget
A ______________________ is one prepared at a single level of activity, generally the activity
level that was used to develop the master budget. - CORRECT ANSWER: Static Budget
A computer system installed last year is an example of:
a.) an avoidable cost
b.) a relevant cost
c.) a sunk cost
d.) a differential cost - CORRECT ANSWER: c.) a sunk cost
A manager of an investment center can improve ROI by:
a.) reducing variable and/or controllable fixed costs
b.) reducing sales
,c.) increasing variable costs
d.) increasing average operating assets - CORRECT ANSWER: a.) reducing variable and/or
controllable fixed costs
A planning function of the budgeting process is that the budget outlines a specific course of
action for the coming period. (True or False) - CORRECT ANSWER: True
amount of increase or decrease in cost that is expected from a course of action as compared with
an alternative - CORRECT ANSWER: Relevant Cost
amount of increase or decrease in revenue expected from a course of action as compared with an
alternative - CORRECT ANSWER: Relevant Revenue
cost that have been incurred in the past and are not relevant to a decision - CORRECT
ANSWER: Sunk Cost
Each of the following budgets is used in preparing the budgeted income statement except for:
a.) direct labor budget
b.) sales budget
c.) capital expenditure budget
d.) selling and administrative budget - CORRECT ANSWER: c.) capital expenditure budget
Employee morale at Dos Santos, Inc., is very high. This type of information is known as:
a.) a qualitative factor
b.) an opportunity cost
c.) a differential factor
d.) a quantitative factor - CORRECT ANSWER: a.) a qualitative factor
, Estimating costs accurately at an early stage in the value chain is crucial to developing a
profitable product. (True or False) - CORRECT ANSWER: TRUE
focuses on the effect of alternative courses of action on the relevant revenues and costs -
CORRECT ANSWER: Incremental Analysis
Managers' motivation and retention can be increased by empowering segment managers to make
decisions is an example of an advantage of _____________________. - CORRECT ANSWER:
Decentralization
Measuring customer profitability only by looking at whether the sales revenue a customer
generates exceeds the cost of goods sold ignores what? - CORRECT ANSWER: it ignores all
selling and administrative costs incurred to provide customer service and support
On a statement of cash flows prepared with the indirect method, financing activities do NOT
include which of the following:
a.) sale of treasury stock
b.) payment of dividends
c.) payment of principal amounts of long-term debts
d.) payment of interest on long-term debts - CORRECT ANSWER: d.) payment of interest on
long-term debts
Positive signs of a successful company as seen on the statement of cash flows do NOT include:
a.) operating activities are the largest source of cash
b.) the sale of a majority of a company's plant assets
c.) investments in property, plant, and equipment
d.) banks are willing to lend money to the company - CORRECT ANSWER: b.) the sale of a
majority of a company's plant assets
Profit center responsibility reports include:
