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Managerial Accounting 346 Test


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| (TCO 1) Managerial accounting stresses accounting concepts and procedures that are relevant to preparing reports for | | | Student Answer: | | taxing authorities. | | | | internal users of accounting information. | | | | external users of accounting information. | | | | the Securities and Exchange Commission (SEC). | | Instructor Explanation: | Chapter 1, Page 7 | | | | Points Received: | 0 of 4 | | Comments: | | | |

2. | Question : | (TCO 1) Which of the following costs does not change when the level of business activity changes? | | | Student Answer: | | total fixed costs | | | | total variable costs | | | | total direct materials costs | | | | fixed costs per unit | | Instructor Explanation: | Chapter 1, Page 9 | | | | Points Received: | 4 of 4 | | Comments: | | | |

3. | Question : | (TCO 1) You own a car and are trying to decide whether or not to trade it in and buy a new car. Which of the following costs is an opportunity cost in this situation? | | | Student Answer: | | the trip to Cancun that you will not be able to take if you buy the car | | | | the cost of the car you are trading in | | | | the cost of your books for this term | | | | the cost of your car insurance last year | | Instructor Explanation: | Chapter 1, Page 9 | | | | Points Received: | 4 of 4 | | Comments: | | | |

4. | Question : | (TCO 1) Shula’s 347 Grill has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,700; depreciation, $800; and other fixed costs, $600. Each steak dinner sells for $14.00 each. What is the budgeted fixed cost per unit? | | | Student Answer: | | $1.06 | | | |

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