Accounting ACCT 526 Final
QUESTIONS AND VERIFIED
CORRECT ANSWERS
GRADED A+ LATEST 100%
GUARANTEED PASS
A 45% contribution margin ratio means that: - CORRECT ANSWER-45% of the company's
revenue is available to cover fixed costs and to contribute toward operating income.
Suppose Motel 6 has annual fixed costs applicable to its rooms of $1.2 million for its 300-room
motel, average daily room rents of $50, and average variable costs of $10 for each room rented.
It operates 365 days per year.
How much net income on rooms will be generated if the motel is completely full throughout the
entire year? - CORRECT ANSWER-$3,180,000
Brant Company manufactures a part for its production cycle. The costs per unit for 5,000 units
of this part are as follows:
Direct materials $3 Direct labor 5 Variable factory overhead 4 Fixed factory overhead 2 Total
costs $14
The fixed factory overhead costs are unavoidable.
Assuming no other use of their facilities, the highest price that Brant Company should be willing
to pay for the part is - CORRECT ANSWER-$12
In a decision to retain or replace equipment, the book value of the old equipment is a: -
CORRECT ANSWER-sunk cost
, A segment of Duke Inc has the following data:
Sales $200,000
Variable expenses $140,000
Fixed expenses $100,000
If this segment is eliminated, what will be the effect on the remaining company? Assume that
50% of the fixed expenses will be eliminated and the rest will be allocated to the segments of
the remaining company. - CORRECT ANSWER-$10,000 decrease
Which of the following are risks of outsourcing the production of a part?
a. unscheduled price increases
b. unreliable delivery
c. all of these are risks of outsourcing
d. unpredictable quality - CORRECT ANSWER-c. all of these are risks of outsourcing
If a plant is operating at full capacity and receives a one-time opportunity to accept an order at
a special price below its usual price, then - CORRECT ANSWER-the order will likely be rejected
A job order cost system traces direct materials cost to a particular job by means of: - CORRECT
ANSWER-materials requisitions
In a manufacturing company, the Cost of Goods Manufactured (COGM) is equal to: - CORRECT
ANSWER-the beginning inventory of work in process, plus total manufacturing costs, less the
ending inventory of work in process
QUESTIONS AND VERIFIED
CORRECT ANSWERS
GRADED A+ LATEST 100%
GUARANTEED PASS
A 45% contribution margin ratio means that: - CORRECT ANSWER-45% of the company's
revenue is available to cover fixed costs and to contribute toward operating income.
Suppose Motel 6 has annual fixed costs applicable to its rooms of $1.2 million for its 300-room
motel, average daily room rents of $50, and average variable costs of $10 for each room rented.
It operates 365 days per year.
How much net income on rooms will be generated if the motel is completely full throughout the
entire year? - CORRECT ANSWER-$3,180,000
Brant Company manufactures a part for its production cycle. The costs per unit for 5,000 units
of this part are as follows:
Direct materials $3 Direct labor 5 Variable factory overhead 4 Fixed factory overhead 2 Total
costs $14
The fixed factory overhead costs are unavoidable.
Assuming no other use of their facilities, the highest price that Brant Company should be willing
to pay for the part is - CORRECT ANSWER-$12
In a decision to retain or replace equipment, the book value of the old equipment is a: -
CORRECT ANSWER-sunk cost
, A segment of Duke Inc has the following data:
Sales $200,000
Variable expenses $140,000
Fixed expenses $100,000
If this segment is eliminated, what will be the effect on the remaining company? Assume that
50% of the fixed expenses will be eliminated and the rest will be allocated to the segments of
the remaining company. - CORRECT ANSWER-$10,000 decrease
Which of the following are risks of outsourcing the production of a part?
a. unscheduled price increases
b. unreliable delivery
c. all of these are risks of outsourcing
d. unpredictable quality - CORRECT ANSWER-c. all of these are risks of outsourcing
If a plant is operating at full capacity and receives a one-time opportunity to accept an order at
a special price below its usual price, then - CORRECT ANSWER-the order will likely be rejected
A job order cost system traces direct materials cost to a particular job by means of: - CORRECT
ANSWER-materials requisitions
In a manufacturing company, the Cost of Goods Manufactured (COGM) is equal to: - CORRECT
ANSWER-the beginning inventory of work in process, plus total manufacturing costs, less the
ending inventory of work in process
