ACG 2071 Exam 1 FSU Questions with Correct Answers Already Passed Latest 2025
planning involves - Answers setting goals and objectives
pillars of managerial accounting - Answers controlling, decision making, planning
business management perspectives that go beyond the numbers to enable intelligent planning,
controlling, and decision making include: - Answers 1. enterprise risk management perspective
2. corporate social responsibility perspective
3. leadership perspective
Adventure Holiday sells thousands of tour packages each month through its various branches. A branch
manager's salary would be a(n) _________ of selling a tour package. - Answers indirect cost
A ___________ is a cost that is incurred to support a number of cost objects but cannot be traced to
them individually. - Answers common cost
Adventure Holiday sells thousands of tour packages each month through its various branches. A branch
manager's salary would be a(n) _________ of the branch. - Answers direct cost
manufacturing cost categories include: - Answers direct labor, direct materials, manufacturing overhead
Materials that become an integral part of the finished product and whose costs can be conveniently
traced to the finished product are called - Answers direct materials
also known as "touch labor" - Answers direct labor
Items such as indirect materials, indirect labor, maintenance and repairs on production equipment,
depreciation, and insurance on manufacturing facilities are included in - Answers manufacturing
overhead costs
what is common to both prime cost and conversion cost? - Answers direct labor
Property taxes associated with a company's administrative facility are considered - Answers non
manufacturing costs
The _________ requires that the costs incurred to generate a particular revenue should be recognized
as expenses in the same period that the revenue is recognized. - Answers matching principle
If a firm increases its activity level, - Answers some costs will change, other costs will remain the same
Cyber Devices manufactures PCTV products that enable people to watch television content on their
computers. It sells its product to retailers for $50. A tuner component that goes into each of these
devices costs $5 to acquire. The total variable cost at an activity level of 1,000 units equals - Answers
$5,000
, - total variable cost - $5 x 1,000 = $5,000
A fixed cost is a cost which - Answers remains constant in total with changes in the level of activity
In a small manufacturing facility, one welder is needed for every 200 hours of machine-hours or fewer in
a month. The welder is paid a monthly salary of $2,500. If the total monthly requirement is 1,300
machine-hours, the total salaried employee expense is - Answers $17,500
- The company would need 7 welders (7 × $2,500 = $17,500) to complete the work. The relevant range
here is 1,201 to 1,400 machine-hours
In the equation, Y = a + bX, X represents - Answers the level of activity
differential costs are always - Answers future costs that differ between alternatives and are relevant in
making business decisions.
what is always an irrelevant cost? - Answers sunk costs
opportunity costs - Answers - the potential benefit that is given up when one alternative is selected over
another.
- not usually found in accounting records.
- must be explicitly considered in every decision a manager makes.
the traditional income statement uses - Answers costs of goods sold and selling & administrative
expenses
Audio Corporation purchased $20,000 of DVDs during the current year. The company had DVD inventory
of $15,000 at the beginning of the year. An end of the year audit revealed that the company had DVD
inventory of $10,000. The amount that would be reported as cost of goods sold in the income statement
for the current year is - Answers $25,000
- Cost of goods sold = $15,000 + $20,000 − $10,000 = $25,000
contribution approach - Answers it separates costs into fixed and variable categories
Davidson Company has sales of $100,000, variable cost of goods sold of $40,000, variable selling
expenses of $15,000, variable administrative expenses of $5,000, fixed selling expenses of $7,000, and
fixed administrative expenses of $9,000. What is Davidson's contribution margin? - Answers $40,000
- Contribution margin = $100,000 − ($40,000 + $15,000 + $5,000) = $100,000 − $60,000 = $40,000
The direct materials required to manufacture each unit of product are listed on a - Answers bill of
materials
In the cost formula (Y = a + bX) that is used to estimate the total manufacturing overhead cost for a
given period, the letter "a" refers to the estimated - Answers total fixed manufacturing overhead cost
planning involves - Answers setting goals and objectives
pillars of managerial accounting - Answers controlling, decision making, planning
business management perspectives that go beyond the numbers to enable intelligent planning,
controlling, and decision making include: - Answers 1. enterprise risk management perspective
2. corporate social responsibility perspective
3. leadership perspective
Adventure Holiday sells thousands of tour packages each month through its various branches. A branch
manager's salary would be a(n) _________ of selling a tour package. - Answers indirect cost
A ___________ is a cost that is incurred to support a number of cost objects but cannot be traced to
them individually. - Answers common cost
Adventure Holiday sells thousands of tour packages each month through its various branches. A branch
manager's salary would be a(n) _________ of the branch. - Answers direct cost
manufacturing cost categories include: - Answers direct labor, direct materials, manufacturing overhead
Materials that become an integral part of the finished product and whose costs can be conveniently
traced to the finished product are called - Answers direct materials
also known as "touch labor" - Answers direct labor
Items such as indirect materials, indirect labor, maintenance and repairs on production equipment,
depreciation, and insurance on manufacturing facilities are included in - Answers manufacturing
overhead costs
what is common to both prime cost and conversion cost? - Answers direct labor
Property taxes associated with a company's administrative facility are considered - Answers non
manufacturing costs
The _________ requires that the costs incurred to generate a particular revenue should be recognized
as expenses in the same period that the revenue is recognized. - Answers matching principle
If a firm increases its activity level, - Answers some costs will change, other costs will remain the same
Cyber Devices manufactures PCTV products that enable people to watch television content on their
computers. It sells its product to retailers for $50. A tuner component that goes into each of these
devices costs $5 to acquire. The total variable cost at an activity level of 1,000 units equals - Answers
$5,000
, - total variable cost - $5 x 1,000 = $5,000
A fixed cost is a cost which - Answers remains constant in total with changes in the level of activity
In a small manufacturing facility, one welder is needed for every 200 hours of machine-hours or fewer in
a month. The welder is paid a monthly salary of $2,500. If the total monthly requirement is 1,300
machine-hours, the total salaried employee expense is - Answers $17,500
- The company would need 7 welders (7 × $2,500 = $17,500) to complete the work. The relevant range
here is 1,201 to 1,400 machine-hours
In the equation, Y = a + bX, X represents - Answers the level of activity
differential costs are always - Answers future costs that differ between alternatives and are relevant in
making business decisions.
what is always an irrelevant cost? - Answers sunk costs
opportunity costs - Answers - the potential benefit that is given up when one alternative is selected over
another.
- not usually found in accounting records.
- must be explicitly considered in every decision a manager makes.
the traditional income statement uses - Answers costs of goods sold and selling & administrative
expenses
Audio Corporation purchased $20,000 of DVDs during the current year. The company had DVD inventory
of $15,000 at the beginning of the year. An end of the year audit revealed that the company had DVD
inventory of $10,000. The amount that would be reported as cost of goods sold in the income statement
for the current year is - Answers $25,000
- Cost of goods sold = $15,000 + $20,000 − $10,000 = $25,000
contribution approach - Answers it separates costs into fixed and variable categories
Davidson Company has sales of $100,000, variable cost of goods sold of $40,000, variable selling
expenses of $15,000, variable administrative expenses of $5,000, fixed selling expenses of $7,000, and
fixed administrative expenses of $9,000. What is Davidson's contribution margin? - Answers $40,000
- Contribution margin = $100,000 − ($40,000 + $15,000 + $5,000) = $100,000 − $60,000 = $40,000
The direct materials required to manufacture each unit of product are listed on a - Answers bill of
materials
In the cost formula (Y = a + bX) that is used to estimate the total manufacturing overhead cost for a
given period, the letter "a" refers to the estimated - Answers total fixed manufacturing overhead cost
