ACCT 2121 Mid-term
Exam 2022
MCQ
Q1 (1 point)
In multiproduct situations, when the sales mix shifts toward the product with the highest
contribution margin per unit, then:
A) total revenues will decrease
B) breakeven quantity will increase
C) total contribution margin will decrease
D) operating income will increase
Q2 (1 point)
Hope company produces and sells 500 units of its only product per month at the selling price of
$1,200. The variable manufacturing cost of the 500 units is $90,000 and the variable
nonmanufacturing cost totals $60,000. Total manufacturing fixed cost is $100,000 and total
nonmanufacturing fixed cost is $10,000. How would the monthly operating income change if
sales units increase by 20%.
A) operating income is increased by $90,000
B) operating income is increased by $45,000
C) operating income is increased by $120,000
D) operating income is increased by $118,000
Q3 (1 point)
Which of the following statements refers to management accounting information?
A) There are some regulatory requirements for how information is collected and reported
B) The information is generally about historical firm performance
C) The audience tends to be managers, stockholders, tax auditors, and regulators
D) It affects the how performance is measured for different departments within a firm
Q4 (1 point)
More cost pools:
A) always result in better estimates of indirect costs
B) seldom result in better estimates of indirect costs
C) are usually beneficial if the pattern of demand varies across resources
D) result in lower estimates of total indirect costs
Q5 (1 point)
Activity-based costing systems provide better product costs when they
A) employ more activity cost drivers
B) employ fewer activity cost drivers
C) identify and cost more resource consumption differences among products
D) always yield more accurate product costs than traditional cost systems
Q6 (1 point)
Which of the following is an example of an inventoriable cost for a firm’s subsidiary factory?
,A) Depreciation on headquarter building
B) Salaries of safeguards at the distribution building
C) Depreciation on factory equipment
D) Salesmen’s salary expenses
Q7 (1 point)
Which statement is TRUE?
A) All materials costs are direct costs.
B) Because of a cost-benefit tradeoff, some costs that are traceable may be treated as indirect
costs.
C) All fixed costs are indirect costs.
D) None of indirect costs are traceable to cost objects.
Q8 (1 point)
Suppose manufacturing overhead cost in manufacturing overhead control account is
$15,000, manufacturing overhead cost under Work-in-Process account is $10,000. Period-
end adjustment of manufacturing overhead using proration approach results in the side
change to the journal entry of COGS account, and a change in operating income
compared with write-off to COGS approach.
A) Credit; Smaller
B) Credit; Larger
C) Debit; Smaller
D) Debit; Larger
The following question applies to Q9 and Q10.
Olympia Corp produces two types of boards: a standard and a deluxe model. The following
activity and cost information has been compiled.
Number of Number of Number of total
Product Setups Components Direct Labor Hours
Standard 20 10 375
Deluxe 30 15 225
Overhead costs $25,000 $35,000
Q9 (1 point)
Assume a traditional costing system applies the $60,000 of overhead costs based on direct
labor hours. What is the total amount of overhead costs assigned to the Deluxe model?
A) $20,000
B) $22,500
C) $25,000
D) $35,250
Q10 (1 point)
Number of setups and number of components are identified as activity-cost drivers for
, overhead costs. Assuming an activity-based costing system is used, what is the total amount
of overhead costs assigned to the standard model?
A) $10,000
B) $14,500
C) $24,000
D) $30,000
Q11 (1 point)
Which of the following is true about management accounting information?
A) It is prepared based on cost-benefit analysis
B) It is only used by top managers to make internal business decisions
C) It focuses on the past-oriented financial performance of a company
D) It only measures the cash transactions of a company
Q12 (1 point)
Which of the following is NOT the reason for firms to care about sustainability?
A) To attract investors
B) To attract employees
C) To avoid litigation concerns
D) To achieve short-term financial goals
Q13 (1 point)
Total costs are $180,000 when 10,000 units are produced; of this amount, variable costs are
$80,000. What are the total costs when 15,000 units are
produced? A) 214,800
B) 220,000
C) 234,000
D) Total costs cannot be calculated based on the information presented
Q14 (1 point)
Which of the following is NOT the indirect costs to take the midterm of ACCT 2121?
A) Tuition paid to the CUHK
B) The cost of time you spend to take the midterm of ACCT 2121
C) The expense of your laptop
D) The cost of dinner you have before the exam
Q15 (1 point)
Suppose a car manufacturer has a cost function as y = a + b*x. If there is an increase in the
cost of each engine (as an input to produce a car) by the amount of $c, which of the following
is the new cost function?
A) y = (a+c) + b*x
B) y = a + (b+c)*x
C) y = a + c*x
D) y = a + b*c*x
Exam 2022
MCQ
Q1 (1 point)
In multiproduct situations, when the sales mix shifts toward the product with the highest
contribution margin per unit, then:
A) total revenues will decrease
B) breakeven quantity will increase
C) total contribution margin will decrease
D) operating income will increase
Q2 (1 point)
Hope company produces and sells 500 units of its only product per month at the selling price of
$1,200. The variable manufacturing cost of the 500 units is $90,000 and the variable
nonmanufacturing cost totals $60,000. Total manufacturing fixed cost is $100,000 and total
nonmanufacturing fixed cost is $10,000. How would the monthly operating income change if
sales units increase by 20%.
A) operating income is increased by $90,000
B) operating income is increased by $45,000
C) operating income is increased by $120,000
D) operating income is increased by $118,000
Q3 (1 point)
Which of the following statements refers to management accounting information?
A) There are some regulatory requirements for how information is collected and reported
B) The information is generally about historical firm performance
C) The audience tends to be managers, stockholders, tax auditors, and regulators
D) It affects the how performance is measured for different departments within a firm
Q4 (1 point)
More cost pools:
A) always result in better estimates of indirect costs
B) seldom result in better estimates of indirect costs
C) are usually beneficial if the pattern of demand varies across resources
D) result in lower estimates of total indirect costs
Q5 (1 point)
Activity-based costing systems provide better product costs when they
A) employ more activity cost drivers
B) employ fewer activity cost drivers
C) identify and cost more resource consumption differences among products
D) always yield more accurate product costs than traditional cost systems
Q6 (1 point)
Which of the following is an example of an inventoriable cost for a firm’s subsidiary factory?
,A) Depreciation on headquarter building
B) Salaries of safeguards at the distribution building
C) Depreciation on factory equipment
D) Salesmen’s salary expenses
Q7 (1 point)
Which statement is TRUE?
A) All materials costs are direct costs.
B) Because of a cost-benefit tradeoff, some costs that are traceable may be treated as indirect
costs.
C) All fixed costs are indirect costs.
D) None of indirect costs are traceable to cost objects.
Q8 (1 point)
Suppose manufacturing overhead cost in manufacturing overhead control account is
$15,000, manufacturing overhead cost under Work-in-Process account is $10,000. Period-
end adjustment of manufacturing overhead using proration approach results in the side
change to the journal entry of COGS account, and a change in operating income
compared with write-off to COGS approach.
A) Credit; Smaller
B) Credit; Larger
C) Debit; Smaller
D) Debit; Larger
The following question applies to Q9 and Q10.
Olympia Corp produces two types of boards: a standard and a deluxe model. The following
activity and cost information has been compiled.
Number of Number of Number of total
Product Setups Components Direct Labor Hours
Standard 20 10 375
Deluxe 30 15 225
Overhead costs $25,000 $35,000
Q9 (1 point)
Assume a traditional costing system applies the $60,000 of overhead costs based on direct
labor hours. What is the total amount of overhead costs assigned to the Deluxe model?
A) $20,000
B) $22,500
C) $25,000
D) $35,250
Q10 (1 point)
Number of setups and number of components are identified as activity-cost drivers for
, overhead costs. Assuming an activity-based costing system is used, what is the total amount
of overhead costs assigned to the standard model?
A) $10,000
B) $14,500
C) $24,000
D) $30,000
Q11 (1 point)
Which of the following is true about management accounting information?
A) It is prepared based on cost-benefit analysis
B) It is only used by top managers to make internal business decisions
C) It focuses on the past-oriented financial performance of a company
D) It only measures the cash transactions of a company
Q12 (1 point)
Which of the following is NOT the reason for firms to care about sustainability?
A) To attract investors
B) To attract employees
C) To avoid litigation concerns
D) To achieve short-term financial goals
Q13 (1 point)
Total costs are $180,000 when 10,000 units are produced; of this amount, variable costs are
$80,000. What are the total costs when 15,000 units are
produced? A) 214,800
B) 220,000
C) 234,000
D) Total costs cannot be calculated based on the information presented
Q14 (1 point)
Which of the following is NOT the indirect costs to take the midterm of ACCT 2121?
A) Tuition paid to the CUHK
B) The cost of time you spend to take the midterm of ACCT 2121
C) The expense of your laptop
D) The cost of dinner you have before the exam
Q15 (1 point)
Suppose a car manufacturer has a cost function as y = a + b*x. If there is an increase in the
cost of each engine (as an input to produce a car) by the amount of $c, which of the following
is the new cost function?
A) y = (a+c) + b*x
B) y = a + (b+c)*x
C) y = a + c*x
D) y = a + b*c*x
