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  • TheAceStudent - BUS 475 Final Exam Guide 2

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    BUS 475 Final Exam Guide 2. Get an A++. BUS 475 Final Exam Guide 2. Get an A++. 1) The cost principle requires that when assets are acquired, they be recorded at __________. 2) “Generally accepted” in the phrase generally accepted accounting principles means that the principles __________. 3) The standards and rules that are recognized as a general guide for financial reporting are called __________. 4) Sam’s Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March? 5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point? 6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead? 7) What is the preparation of reports for each level of responsibility in the company’s organization chart called? 8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company’s net income increase? 9) The cost of an asset and its fair market value are __________. 10) Which one of the following is a product cost? 11) What exists when budgeted costs exceed actual results? 12) The income statement and balance sheet columns of Pine Company’s worksheet reflects the following totals: Income Statement Balance Sheet Dr. Cr. Dr. Cr. Totals $58,000 $48,000 $34,000 $44,000 Closing entries are necessary for __________. 13) Managerial accounting __________. 14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers? 15) Lekeisha’s income exceeds her expenditures. Lekeisha is a __________. 16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________. 17) A production possibilities frontier will be a straight line if __________. 18) In economics, the cost of something is __________. 19) A tax on an imported good is called a __________. 20) Which of the following statements about GDP is correct? 21) In computing GDP, market prices are used to value final goods and services because __________. 22) Which of the following statements about GDP is correct? 23) Which of the following is not correct? 24) The part of the balance of payments account that lists all long-term flows of payments is called the: 25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________. 26) In general, the longest lag for __________. 27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when

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    BUS 475 Final Exam Guide 2. Get an A++. BUS 475 Final Exam Guide 2. Get an A++. 1) The cost principle requires that when assets are acquired, they be recorded at __________. 2) “Generally accepted” in the phrase generally accepted accounting principles means that the principles __________. 3) The standards and rules that are recognized as a general guide for financial reporting are called __________. 4) Sam’s Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March? 5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point? 6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead? 7) What is the preparation of reports for each level of responsibility in the company’s organization chart called? 8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company’s net income increase? 9) The cost of an asset and its fair market value are __________. 10) Which one of the following is a product cost? 11) What exists when budgeted costs exceed actual results? 12) The income statement and balance sheet columns of Pine Company’s worksheet reflects the following totals: Income Statement Balance Sheet Dr. Cr. Dr. Cr. Totals $58,000 $48,000 $34,000 $44,000 Closing entries are necessary for __________. 13) Managerial accounting __________. 14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers? 15) Lekeisha’s income exceeds her expenditures. Lekeisha is a __________. 16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________. 17) A production possibilities frontier will be a straight line if __________. 18) In economics, the cost of something is __________. 19) A tax on an imported good is called a __________. 20) Which of the following statements about GDP is correct? 21) In computing GDP, market prices are used to value final goods and services because __________. 22) Which of the following statements about GDP is correct? 23) Which of the following is not correct? 24) The part of the balance of payments account that lists all long-term flows of payments is called the: 25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________. 26) In general, the longest lag for __________. 27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when

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    TheAceStudent - BUS 475 Final Exam Guide 2

    Uploaded by

    teacher.theacestud
    BUS 475 Final Exam Guide 2. Get an A++. BUS 475 Final Exam Guide 2. Get an A++. 1) The cost principle requires that when assets are acquired, they be recorded at __________. 2) “Generally accepted” in the phrase generally accepted accounting principles means that the principles __________. 3) The standards and rules that are recognized as a general guide for financial reporting are called __________. 4) Sam’s Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March? 5) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point? 6) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead? 7) What is the preparation of reports for each level of responsibility in the company’s organization chart called? 8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company’s net income increase? 9) The cost of an asset and its fair market value are __________. 10) Which one of the following is a product cost? 11) What exists when budgeted costs exceed actual results? 12) The income statement and balance sheet columns of Pine Company’s worksheet reflects the following totals: Income Statement Balance Sheet Dr. Cr. Dr. Cr. Totals $58,000 $48,000 $34,000 $44,000 Closing entries are necessary for __________. 13) Managerial accounting __________. 14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers? 15) Lekeisha’s income exceeds her expenditures. Lekeisha is a __________. 16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________. 17) A production possibilities frontier will be a straight line if __________. 18) In economics, the cost of something is __________. 19) A tax on an imported good is called a __________. 20) Which of the following statements about GDP is correct? 21) In computing GDP, market prices are used to value final goods and services because __________. 22) Which of the following statements about GDP is correct? 23) Which of the following is not correct? 24) The part of the balance of payments account that lists all long-term flows of payments is called the: 25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________. 26) In general, the longest lag for __________. 27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of newly-constructed homes. How are these two items accounted for when

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