University of Louisiana, Lafayette ACCT 526 / ACCT526 Mid-Term Exam

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All public companies that are traded on a stock exchange and governed by the Securities and Exchange Commission (SEC) must prepare financial statements following Select one: a. generally accepted a... ccounting principles b. accounting principles set by the Federal Trade Commission c. standards set by the Accounting Principles Board d. generally appropriate accounting standards Your answer is correct. The correct answer is: generally accepted accounting principles In defining a cost as fixed, the accountant must consider Select one: a. the contribution margin b. projected sales revenue c. the variable costs d. the relevant range Your answer is correct. The correct answer is: the relevant range ACCT526-850_010-201820 Question 3 Incorrect Mark 0.00 out of 3.00 Question 4 Correct Mark 3.00 out of 3.00 There is an important relationship between contribution margin and profit. Which of the following statements is NOT true? Select one: a. as the number of units sold increases, total contribution margin and fixed costs increase b. as the number of units sold rises, profit increases by the additional contribution margin per unit c. as the number of units sold decreases, total contribution margin decreases, but fixed costs remain the same d. as the number of units sold increases, total contribution margin increases, but fixed costs remain the same Your answer is incorrect. The correct answer is: as the number of units sold increases, total contribution margin and fixed costs increase An example of a discretionary fixed cost is: [Show More]

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