#2	Which type of analysis would highlight the percentage increase in sales from one year to the next?
A.	Debt-related analysis
B.	Vertical analysis
C.	Horizontal analysis
D.	Comprehensive analysis
#3	Which of the following costs will change when the level of business activity changes?
A.	Total fixed costs
B.	Variable cost per unit
C.	Sunk cost
D.	A companys total costs
#4	Bagel Time produced and sold 2,500 bagels last month and incurred fixed costs totaling $8,000. If production and sales are expected to decrease by 10% next month, which of the following statements is true?
A.	Total fixed costs will increase.
B.	Total fixed costs will decrease.
C.	Fixed cost per unit will increase.
D.	Fixed cost per unit will decrease.
#5	A cost which is directly traceable to a product, activity, or department is a(n)
A.	direct cost.
B.	fixed cost.
C.	indirect cost.
D.	opportunity cost.
#6	Product costs
A.	become an expense in the period the costs are incurred.
B.	only occur in manufacturing (WIP), not in retail
C.	are considered an asset until the finished goods are sold.
D.	only contain variable costs
#7	Which of the following is considered a period cost?
A.	Monthly rent on a factory production machine
B.	Maintenance labor on production equipment
C.	Advertising and other selling expenses
D.	Indirect manufacturing overhead costs
#8	A company has a cost that is $7.00 per unit at a volume of 10,000 units and $5.00 per unit at a volume of 14,000 units. What type of cost is this?
A.	Fixed costs
B.	Variable costs
C.	Mixed costs
D.	Incremental costs
#9	Which of the following lists presents the accounts in the order in which product costs flow?
A.	Work in Process Inventory, Raw Materials Inventory, Finished Goods Inventory, Cost of Goods Sold
B.	Work in Process Inventory, Finished Goods Inventory, Cost of Goods Sold, Raw Materials Inventory
C.	Raw Materials Inventory, Finished Goods Inventory, Work in Process Inventory, Cost of Goods Sold
D.	Raw Materials Inventory, Work in Process Inventory, Finished Goods Inventory, Cost of Goods Sold
#10	Randolph Corporation sells a single product at a price of $275 per unit. Variable cost per unit is $135 and fixed costs total $356,860. If sales are expected to be $825,000, what is the companys margin of safety? (in $)
A.	$ 356,860
B.	$ 60,885
C.	$ 0. (at breakeven point)
D.	$ 124,025

Ratio analysis (questions below)				Income Statement ->		Year Ended December 31
	Smart Buy Balance Sheet	Dec 31	Dec 31		Income Statement	2016	2015
	Assets	2016	2015		Net sales	2,281,789	2,074,354
	Current assets:				Cost of goods sold	1,505,981	1,348,330
	Cash	14,000	12,458		Gross margin	775,808	726,024
	Accounts receivable	45,489	35,486		Operating expenses	458,245	420,408
	Inventory	39,239	32,568		Operating income	317,563	305,616
	Other	3,400	2,581		Interest expense	36,542	33,181
	Total current assets	102,128	83,093		Earnings before income taxes	281,021	272,435
	Long-term investments	128,580	104,600		Income tax expense	98,357	95,352
	Property, plant and equipment, net	789,145	771,258		Net earnings	182,664	177,083
	Total assets	1,019,853	958,951
	Liabilities and Stockholders Equity
	Current liabilities:
	Accounts payable	88,789	85,451
	Other current liabilities	3,456	5,157
	Total current liabilities	92,245	90,608
	Long-term debt	466,781	414,760
	Total liabilities	559,026	505,368
	Stockholders equity:
	Common stock	375,000	375,000
	Retained earnings	85,827	78,583
	Total stockholders equity	460,827	453,583
	Total liabilities and stockholders equity	1,019,853	958,951
	Smart Buy had 50,000 common shares outstanding throughout 2016.
#11	Calculate the following ratios for 2016 for Smart Buy (see Chapter 14 for ratio definitions):
	Show calculations (in cell formula or as a text).
		2016
a.	Acid Test (quick ratio)
b.	Days' sales in inventory
c.	Gross margin percentage
d.	Return on Stockholder's equity
e.	Debt-to-equity ratio
	(END of QUIZ)