BUSN 7031 MIdterm exam

2594 words 11 pages
Mid Semester Examination
First Semester, 2013
BUSN7031 Management Accounting & Cost Analysis
Writing period: 1.5 Hours duration
Study period: 10 Minutes duration
Permitted materials:
*Non-programmable Calculators
*English to Foreign language translation dictionary with signed permission form

You must attempt to answer all questions.

The examination paper consists of 2 sections (Multiple Choice Questions and

Answer ALL Multiple Choice Questions on the multiple choice answer sheet provided. ∗

Answer ALL Problems in the booklet provided.

Examination answer sheets and booklets without student numbers will be deemed incomplete and FAILED.

All writing must be legible.

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A) $14.25

B) $15.00

C) $18.00

D) $21.75

16) What is the inventoriable cost per unit using absorption costing?
A) $15.00

B) $18.00

C) $18.75

D) $21.75

17) The gross-margin format of the income statement:
A) is used with variable costing
B) calculates contribution margin
C) distinguishes between manufacturing and nonmanufacturing costs
D) distinguishes variable costs from fixed costs

18) Helton Company has the following information for the current year:
Beginning fixed manufacturing overhead in inventory
Fixed manufacturing overhead in production
Ending fixed manufacturing overhead in inventory


Beginning variable manufacturing overhead in inventory $10,000
Variable manufacturing overhead in production
Ending variable manufacturing overhead in inventory
What is the difference between operating profits under absorption costing and variable costing?
A) $70,000

B) $50,000

C) $40,000

D) $5,000


19) The advantage of using normal costing instead of actual costing is:
A) indirect costs are assigned to a job on a timely basis
B) normal costing provides a higher gross profit margin
C) indirect costs are assigned at the end of the year when they are known
D) the job cost is more accurate under normal costing

20) When indirect materials are requisitioned the ________ account is increased.
A) Materials Control
B) Manufacturing Overhead Control