Quiz
Accounting II - Unit 6 Practice Test
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Fragen in diesem Quiz (28)
1Fresh Food Market had an increase in net sales of 18.9%. Advertising expense increased by 9.3%. Which of the following is correct about the change in advertising expense?
- AFavorable change because the difference in the increase in net sales and the increase in advertising expense was less than 10%
- BFavorable change because the percentage increase in net sales was greater than the percentage increase in advertising expense
- CNormal change because advertising expense increased
- DNormal change because net sales increased and advertising expense increased
2John wants to prepare reports that show estimates of income and expenses for the upcoming year. Which report would reflect estimates for rent expense?
- AAdministrative expenses budget schedule
- BPurchases budget schedule
- CSales budget schedule
- DCost of goods sold budget schedule
3Slugger Apparel had an increase in net sales of 7.9%. Cost of merchandise sold increased by 13.4%. Which of the following is correct about the change in cost of merchandise sold?
- AFavorable change because the difference in the increase in net sales and the increase in cost of merchandise sold was less than 1%
- BFavorable change because the percentage increase in net sales was less than the percentage increase in cost of merchandise sold
- CNormal change because net sales increased and cost of merchandise sold increased
- DUnfavorable change because the percentage increase in net sales was less than the cost of merchandise sold.
4Mary wants to prepare reports that show estimates of income and expenses for the upcoming year. Which report would Mary need to complete FIRST?
- AAdministrative expenses budget schedule
- BPurchases budget schedule
- CSales budget schedule
- DSelling expenses budget schedule
5Bill's Beverage has an increase in net sales of 9.3%. Rent expense increased by 7.5%. Which of the following is correct about the change in rent expense?
- AFavorable change because the difference in the increase in net sales and the increase in rent expense was less than 5%
- BFavorable change because the percentage increase in net sales was greater than the percentage increase in rent expense
- CNormal change because net sales increased and rent expense increased
- DNormal change because rent expense increased
6Friendly Shoe Store projected cash of $5,000 for the period. Actual cash was $4,000. Which of the following could be the cause of the decrease in cash?
- AActual cost of merchandise is less than budgeting cost of merchandise
- BActual operating expenses are less than budgeted operating expenses
- CCustomers are paying too quickly
- DCustomers are not paying
7Michelle wants to know her company's anticipated cash outflows for the upcoming year. Which schedule would give Michelle this information?
- ABudgeted income statement
- BCash payments budget schedule
- CCash receipts budget schedule
- DSales budget schedule
8Jane wants to compare actual income and expenses to budgeted income and expenses. Which of the following would provide the information Jane needs?
- ABalance Sheet
- BBudgeted income statement
- CComparative income statement
- DPerformance report
9Tennis Town had an increase in net sales of 8.2%. Cost of merchandise sold increased by 13.4%. Which of the following is correct about the change in cost of merchandise sold?
- AFavorable change because cost of merchandise sold increased
- BFavorable change because the percentage increase in net sales was less than the percentage increase in cost of merchandise sold
- CNormal change because sales increased and cost of merchandise sold increased
- DUnfavorable change because percentage increase in sales was less than cost of merchandise sold
10Tucker Manufacturing has total fixed costs of $125,000.00 and a contribution margin rate of 40%. The unit sale price is $125.00. How many units must be sold to break-even?
- A1,000
- B2,500
- C20,000
- D50,000
11Wild Bill's Theme Park has total fixed costs $150,000.00 and a contribution margin rate of 25%. The unit sale price is $75.00. How many units must be sold to break-even?
- A4,000
- B5,000
- C7,500
- D8,000
12Linda's Cosmetics has total fixed costs of $10,000.00. Units sell for $20.00 and have a variable cost of $15.00. To earn a planned net income of $8,000.00, how many units must be sold?
- A720
- B950
- C1,200
- D3,600
13Carson Ski Shoppe is considering expanding its product line to include snowboards. Management projects that the snowboards would sell for $500.00 each. Variable costs are projected to be $100.00 per unit, with total fixed costs of $50,000.00 per month. How many units need to be sold each month to break-even?
- A100
- B125
- C500
- D1,000
14Off Shore Boats sells water skis and jet skis. Their net sales are $400,000.00 (water skis= $320,000.00; jet skis= $80,000.00). Their contribution margin is $100,000.00 and total fixed costs are $50,000.00. Off Shore would like to improve its net income to $75,000.00. If the water skis sell for $1,000 each and the jet skis sell for $2,500 each, how many water skis and jet skis should they plan to purchase and sell?
- A200 water skis and 50 jet skis
- B400 water skis and 40 jet skis
- C30 water skis and 20 jet skis
- D400 water skis and 100 jet skis
15Cooper's Gym has total fixed costs of $15,000.00. The unit sales at break-even point are 3,000. The unit sales price is $15.00. What is the contribution margin per unit?
- A$5.00
- B$5.75
- C$10.00
- D$15.00
16Garrett's Gourmet Ice Creams ells ice cream and milkshakes. Garrett's net sales are $5,000.00 (Ice Cream=$3,000.00; Milkshakes=$2,000.00). Its contribution margin is $2,000.00, and total fixed costs are $2,500.00. Garrett would like to improve its net income to $700.00. If the ice cream sells for $6 each and the milkshakes sell for $4 each, how many ice creams and milkshakes should Garrett plan to purchase and sell?
- A175 ice creams and 100 milkshakes
- B150 ice creams and 200 milkshakes
- C200 ice creams and 100 milkshakes
- D800 ice creams and 800 milkshakes
17David's Hair Products is considering expanding its product line to include hair dryers. Management projects that the hair dryers would sell for $30.00 each. Variable costs are projected to be $18.00 per unit, with total fixed costs $3,600.00 per month. If potential sales for the hair dryers are projected to be 150 units per month, should they expand its production line?
- AYes. David will have a net income of $1,800.00 with the new product.
- BYes. David will have a net income of $3,600.00 with the new product.
- CNo. David will have a net loss of $1,800.00 with this new product.
- DNo. David will have a net loss of $3,600.00 with the new product.
18Green Fees Golf Store has total fixed costs of $12,000.00 and planned net income of $15,000.00. How many sales dollars are required to achieve a 20% contribution margin rate?
- A$40,000.00
- B$60,000.00
- C$75,000.00
- D$135,000.00
19Michel's Craft Store has total fixed costs of $12,000.00 and planned net income of $8,000.00. How many sales dollars are required to achieve a 25% contribution margin rate?
- A$40,000.00
- B$80,000.00
- C$100,000.00
- D$120,000.00
20Water Fun Park had total fixed costs of $75,000.00 and a contribution margin rate of 20%. The unit sale price is $75.00. How many units must be sold to break-even?
- A4,000
- B5,000
- C20,000
- D4,800
21Russell Tie Shop has total fixed costs of $8,000.00. Units sell for $30.00 and have a variable cost of $10.00. To earn a planned net income of $10,000.00, how many units must be sold?
- A600
- B900
- C1,000
- D1,200
22Carson Ski Shopped is considering expanding its product line to include snowboards. Management projects that the snowboards would sell for $500.00 each. Variable costs are projected to be $100.00 per unit, with total fixed costs of $50,000.00 per month. If potential sales for the snowboards are projected to be 100 units per month, should they expand its production line?
- AYes. Carson will have a net income of $5,000.00 with the new product.
- BYes. Carson will have a net income of $10,000.00 with the new product.
- CNo, Carson will have a net loss of $5,000.00 with the new product.
- DNo. Carson will have a net loss of $10,000.00 with the new product.
23Garrett's Gourmet Ice Cream has total fixed costs of $9,000.00 and planned net income of $6,000.00. How many sales dollars are required to achieve a 15% contribution margin rate?
- A$40,000.00
- B$60,000.00
- C$100,000.00
- D$120,000.00
24David's Hair Products is considering expanding its product line to include hair dryers. Management projects that the hair dryers would sell for $30.00 each. Variable costs are projected to be $18.00 per unit, with total fixed costs of $3,600.00 per month. How many units need to be sold each month to break-even?
- A120
- B300
- C450
- D600
25Ryan Sporting Goods has total fixed costs of $36,000.00 and a contribution margin rate of 20%. The unit sale price is $9.00. How many units must be sold to break-even?
- A4,000
- B7,200
- C20,000
- D64,800
26Cooper Electronics sells televisions and DVD players. Cooper's net sales are $75,000.00 (TVs=$52,500.00; DVD players=$22,500.00). Its contribution margin is $30,000.00, and total fixed costs are $24,000.00. Cooper would like to improve its net income to $10,000.00. If the televisions sell for $350 each and the DVD players sell for $250 each, how many televisions and DVD player should Cooper plan to purchase and sell?
- A170 televisions and 102 DVD players
- B102 televisions and 170 DVD players
- C200 televisions and 100 DVD players
- D100 televisions and 200 DVD players
27Budget Motorsports is considering expanding its product line to include motorcycles. Management projects that the motorcycles would sell for $10,000.00 each. Variable costs are projected to be $6,000.00 per unit, with total fixed costs of $200,000 per month. How many units need to be sold each month to break-even?
- A50
- B100
- C200
- D500
28Budget Motorsports is considering expanding its product line to include motorcycles. Management projects that the motorcycles would sell for $10,000.00 each. Variable costs are projected to be $6,000.00 per unit, with total fixed costs of $200,000.00 per month. If potential sales for the motorcycles are projected to be 80 units per month, should they expand its production line?
- AYes. Budget will have a net income of $48,000.00 with the new product
- BYes. Budget will have a net income of $120,000.00 with the new product.
- CNo. Budget will have a net loss of $48,000.00 with the new product.
- DNo. Budget will have a net loss of $120,000.00 with the new product.
Informationen
- Beschreibung
- high school accounting II test on management accounting.
- Autor
- Kathleen Keller
- Sprache
- English
- Aufrufe
- 283
- Schlagwörter
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