Summary
Summary A100 Accounting Exam Review
- Course
- Bus-a100
- Institution
- Indiana University
review for a100 accounting exam with professor Seitz (review material achieved 98%)
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Conceptual QuestionsChapter 1
1. Understand the need for reliable accounting information in making business decisions
2. Define managerial accounting
3. Describe the components of inventory costs for a manufacturing firm
4. Contrast fixed and variable costs
5. Calculate net income using the contribution margin format
6. Which of the following is true?
a. The contribution margin will always equal fixed costs plus net income.
b. Fixed costs per unit always stay the same.
c. Variable costs per unit will vary depending on the level of production.
d. Total fixed costs plus total variable costs will always equal total sales.
i. Answer: A
7. 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
i. Answer: D
8. Which of the following is NOT found on the income statement?
a. Cash
b. Utilities Expense
c. Sales/Revenue
d. Cost of Goods Sold
i. Answer: A
9.
Chapter 2
1. Perform cost volume profit analysis (CVP) for a single product
2. Calculate the breakeven point and target profit using the contribution margin
3. Hourly wages of factory workers (direct labor) are what kind of cost?
4. Property taxes are what kind of cost?
5. If the margin of safety is 0, then
a. The company will record a net loss.
b. The company is breaking even.
c. The margin of safety cannot be less than or equal to 0.
d. The company will earn a small profit.
i. Answer: B
6. In the cost volume profit (CVP) graph:
a. Break even points are not represented on a CVP graph.
b. Losses are represented by the area where the total revenue line is above the
total costs line.
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