ACCT 2302 – Fall 2022 #1

Question 1

How do you determine equivalent units of production for a department?

By adding together the number of units transferred out plus the equivalent units in ending WIP

By subtracting the number of units transferred out minus the equivalent units in ending WIP

By adding together the number of units transferred out plus the equivalent units in beginning WIP

By adding the number of units transfer out and subtract the equivalent units in ending

Answer 1

By adding together the number of units transferred out plus the equivalent units in ending WIP

Question 2

determine which scenario will be considered as relevant cost for a round trip to California via car or plane.

A. Maintenance, cost of gas
B. Depreciation, cost of gas
C. Insurance, depreciation
D. Maintenance, insurance

Answer 2

A. Maintenance, cost of gas

Question 3

Which of the following is true regarding cost drivers related to the calculation and impact on predetermined overhead rate.

A. If the cost driver increases, the total overhead applied increases.
B. Added to the variable overhead when calculating profit
C. The estimates that direct labor hours needed to complete a job
D. If the cost drivers increases the total overhead applied decreases

Answer 3

A. If the cost driver increases, the total overhead applied increases.

Question 4

Which of the following are the functions of management in managerial accounting?

A. Planning, controlling, and decision making
B. Controlling, staffing, and planning
C. Leading, overseeing and decision making
D. Organizing, leading and staffing

Answer 4

A. Planning, controlling, and decision making

Question 5

In a manufacturing department, 65,000 units were completed and transferred out while the ending WIP is 30,000. If materials are 100% completed but conversion is 30% completed. What are the equivalent units of production for conversion?

9,000 units
21,000 units
39,000 units
35,000 units

Answer 5

9,000 units

Question 6

Which of the following can be seen as an advantage for the payback method?

It is an easy screening tool and helpful for the identifying process.
It will ignore the cash flow after the payback.
The payback method ignores the time value of money.
It compares the present value of projected cash flows with the present value of the inflows.

Answer 6

It is an easy screening tool and helpful for the identifying process.

Question 7

What is the most important part of the master budget.

Cash budget
Sales budget
Budgeted income statement
Ending inventory

Answer 7

Cash budget