Exam (elaborations)
MAC 302 PRE MIDTERM TEST.
- Module
- 2025 tests
- Institution
- 2025 Tests
MAC 302 PRE MIDTERM TEST. Questions with 100% Actual correct answers | verified | latest update | Graded A+ | Already Passed | Complete Solution
[Show more]
Content preview
MAC 302 PRE MIDTERM TESTA favorable materials variance indicates savings generated from lower cost of
materials purchased. - correct answer-TRUE
An increase in contribution margin implies decreases in profit - correct
answer-FALSE - INCREASE
At this point, total sales equal total costs. - correct answer-Break Even Point
Avoidable cost are cost incurred once an activity is not performed. - correct
answer-FALSE - NOT INCURRED
Explicit costs are theoretical cost - correct answer-FALSE - IMPLICIT
Factory overhead and direct labor are called prime cost. - correct answer-FALSE
Fixed cost are related to normal capacity and independent from the changes in sales
volume. - correct answer-TRUE
Fixed overhead spending variance is the difference between budgeted fixed
overhead and standard fixed overhead - correct answer-FALSE - ACTUAL FIXED
OVERHEAD - BUDGETED FIXED COST
, If direct materials have price and quantity variance, direct labor consists of
controllable and volume variance. - correct answer-FALSE - If direct materials have
price and quantity variance, FACTORY OVERHEAD consists of controllable and
volume variance.
If production is less than sales, absorption costing profit is greater than that of
variable costing - correct answer-FALSE - If production is less than sales, absorption
costing profit is LESS than that of variable costing
If the cost variance is unfavorable, there is an excess cost or overspending - correct
answer-TRUE
Imputed cost are not incurred but are implied in a given decision. - correct
answer-TRUE
In budgeting, standard costs are used as reliable bases in anticipating budgeted
costs and expenses - correct answer-TRUE
In cost volume profit assumptions, both unit variable cost and fixed cost changes -
correct answer-FALSE
In obtaining the variable cost of goods manufactured, normal capacity is multiplied to
unit variable production cost. - correct answer-TRUE
In variable costing as sales increases, profit also increases. - correct answer-TRUE
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Hkane. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £6.48. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
62890 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now