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MGMT 20100 Practice Midterm Exam I

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LAST NAME: _________________________ FIRST NAME___________________________
PUID________________________________Section________

Purdue University
Krannert School of Management

MGMT 201 – Managerial Accounting I
Spring 2015
Practice Midterm Exam
This practice exam consists of 30 multiple choice questions on 11 pages (including this cover page).
Answer all questions.
No partial credit is available for multiple choice questions. Be sure to put your answers to the multiple choice questions on your Scantron form.
The exam is closed book. A basic four function calculator is permitted.
GOOD LUCK.

Please circle the best answer and fill-in the corresponding circle on your Scantron sheet.
Only answers on the Scantron will be scored.
1. …show more content…

All of these figures include data that pertain to job no. J42.
What is the total cost assigned to J42?
a.
b.
c.
d.
11.

$17,100
$16,200
$15,900
$15,000

Many traditional costing systems:
a. trace manufacturing overhead to individual activities and require the development of numerous activity-costing rates.
b. write off manufacturing overhead as an expense of the current period.
c. combine widely varying elements of overhead into a single cost pool.
d. use a host of different cost drivers (e.g., number of production setups, inspection hours, orders processed) to improve the accuracy of product costing.

MGMT 201 Practice Midterm Exam—Page 4

12.

Consider the following statements regarding traditional costing systems:
I. Overhead costs are applied to products on the basis of volume-related measures.
II. All manufacturing costs are easily traceable to the goods produced.
III. Traditional costing systems tend to distort unit manufacturing costs when numerous goods are made that have widely varying production requirements.

Which of the above statements is (are) false?
a. I only.
b. II only.
c. III only.
d. I and II.
13.
Saylor manufactures products X and Y, applying overhead on the basis of labor hours. X, a low-volume product, requires a variety of complex manufacturing procedures. Y, on the other hand, is both a high-volume product and relatively simplistic in

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