QUESTION – From an internal control standpoint, the asset most susceptible to improper diversion and use is
a. Prepaid insurance
b. Cash
c. Buildings
d. Land
ANSWER – B – Cash
QUESTION – In applying the high-low method, which months are relevant?
| Month | Miles | Total Cost |
| January | 80,000 | $96,000 |
| February | 50,000 | 80,000 |
| March | 70,000 | 94,000 |
| April | 90,000 | 130,000 |
a. January and February
b. January and April
c. February and April
d. February and March
ANSWER – C. February and April
QUESTION – Isakson Company has a contribution margin per unit of $15 and a contribution margin ratio of 60%. How much is the selling price of each unit?
A $25.00
B $37.50
C $9.00
D Cannot be determined without more information
ANSWER – A – $25.00