IU Bus-A 100 Test 1 (Managerial
Accounting) Final Exam Questions
Fully Solved 2025-2026 Updated.
Which of the following is true?
a. Total fixed costs plus total variable costs will always equal total sales
b. The contribution margin will always equal fixed costs plus net income
c. Variable costs per unit will vary depending on the level of production
d. Fixed costs per unit always stay the same - Answer b. The contribution margin will always
equal fixed costs plus net income
Variable costs expressed on a per unit basis:
a. Should be ignored in making decisions since they cannot change
b. Increase with increases in activity
c. Decrease with increases in activity
d. Are not affected by activity - Answer d. Are not affected by activity
Chips - N - Salsa Corporation, a merchandising company, reported the following results for the
month:
Sales
$60,000
Cost of goods sold (all variable)
$2,200
Total variable selling expense
$14,000
Total fixed selling expense
$14,000
Total variable administrative expense
$1,400
Total fixed administrative expense
$18,000
, Which type of accounting information is intended to satisfy the needs of internal users of
accounting information
a. Auditing
b. Financial Accounting
c. Tax Accounting
d. Managerial Accounting - Answer d. Managerial Accounting
Which of the following is NOT found on the income statement?
a. Sales/Revenue
b. Costs of goods sold
c. Cash
d. Utilities expense - Answer c. Cash
A company sells a fire pit for $400 per unit and has $45,000 in fixed costs. The variable cost per
unit is $325.
What is the net income (loss) if the company sells 542 units? - Answer Net loss of ($4,3500
A company sells a fire pit for $400 per unit and has $45,000 in fixed costs. The variable cost per
unit is $325.
How many units does the company need to sell to breakeven? - Answer 600 unites
If the margin of safety is 0, then
a. The margin of safety cannot be less than or equal to 0
b. The company will record a net loss
c. The company is breaking even
d. The company will earn a small profit - Answer c. The company is breaking even
In the cost volume profit (CVP) graph:
a. breakeven points are not represented on a CVP graph
b. The margin of safety is located where the total revenue line intersects with the total cost line
c. Losses are represented by the area where the total cost line is above the total revenue line
d. Losses are represented by the area where the total revenue line is above the total costs line -
Accounting) Final Exam Questions
Fully Solved 2025-2026 Updated.
Which of the following is true?
a. Total fixed costs plus total variable costs will always equal total sales
b. The contribution margin will always equal fixed costs plus net income
c. Variable costs per unit will vary depending on the level of production
d. Fixed costs per unit always stay the same - Answer b. The contribution margin will always
equal fixed costs plus net income
Variable costs expressed on a per unit basis:
a. Should be ignored in making decisions since they cannot change
b. Increase with increases in activity
c. Decrease with increases in activity
d. Are not affected by activity - Answer d. Are not affected by activity
Chips - N - Salsa Corporation, a merchandising company, reported the following results for the
month:
Sales
$60,000
Cost of goods sold (all variable)
$2,200
Total variable selling expense
$14,000
Total fixed selling expense
$14,000
Total variable administrative expense
$1,400
Total fixed administrative expense
$18,000
, Which type of accounting information is intended to satisfy the needs of internal users of
accounting information
a. Auditing
b. Financial Accounting
c. Tax Accounting
d. Managerial Accounting - Answer d. Managerial Accounting
Which of the following is NOT found on the income statement?
a. Sales/Revenue
b. Costs of goods sold
c. Cash
d. Utilities expense - Answer c. Cash
A company sells a fire pit for $400 per unit and has $45,000 in fixed costs. The variable cost per
unit is $325.
What is the net income (loss) if the company sells 542 units? - Answer Net loss of ($4,3500
A company sells a fire pit for $400 per unit and has $45,000 in fixed costs. The variable cost per
unit is $325.
How many units does the company need to sell to breakeven? - Answer 600 unites
If the margin of safety is 0, then
a. The margin of safety cannot be less than or equal to 0
b. The company will record a net loss
c. The company is breaking even
d. The company will earn a small profit - Answer c. The company is breaking even
In the cost volume profit (CVP) graph:
a. breakeven points are not represented on a CVP graph
b. The margin of safety is located where the total revenue line intersects with the total cost line
c. Losses are represented by the area where the total cost line is above the total revenue line
d. Losses are represented by the area where the total revenue line is above the total costs line -
