Essay on Accounting Derivatives

2068 WordsApr 30, 20139 Pages
This set of 28 questions, taken from prior examinations, covers topics in Chapters 6, 7, and 9. The purpose of sample multiple choice questions is to acquaint you with the style and substance of typical exam questions on this material. Please be aware that: 1. multiple choice format questions are only one of many resources available to prepare for testing events – reading textbook chapters and working through chapter examples, studying the end-of-chapter review problem and accompanying solution, and reviewing assigned homework items and the published solutions may be more powerful methods to increase your understanding of the topics covered in the course. 2. the exam questions used this quarter will be similar but…show more content…
The company's variable costs per unit and total fixed costs have been constant from month to month. 9. What is the net operating income for the month under absorption costing? A) $12,200 B) $8,800 C) $24,800 D) $1,700 10. What is the net operating income for the month under variable costing? A) $24,800 B) $1,700 C) $12,200 D) $8,800 11. What is the unit product cost for the month under absorption costing? A) $72 B) $89 C) $80 D) $63 18. The Jung Corporation's production budget calls for the following number of units to be produced each quarter for next year: [pic] Each unit of product requires three pounds of direct material. The company's policy is to begin each quarter with an inventory of direct materials equal to 30% of that quarter's direct material requirements. Budgeted direct materials purchases for the third quarter would be: A) 89,400 pounds. B) 114,600 pounds. C) 29,800 pounds. D) 38,200 pounds. 19. Which of the following statements is not correct? A) The sales budget generally is accompanied by a computation of expected cash receipts for the forthcoming budget period. B) The cash budget must be prepared prior to the sales budget since managers want to know

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