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Managerial Accounting –ACCT 507.
Midterm Examination
Instructions: Answer all the question in a typed, double spaced format consistent with the American Psychological Association’s (APA) Standards.
Note: Academic dishonesty will fowled as prescribed by the school and higher education standards guideline. 
Chapter 1 Page 23
1A–2 Perhaps your most important post-graduation objective is to get a job. Describe some
control activities that you would pursue to help achieve this objective.
Chapter 2. Page 51
2–a What are the three major elements of product costs in a manufacturing company?
2–b Define the following: (1) direct materials, (2) indirect materials, (3) direct labor,
(4) indirect labor, and (5) manufacturing overhead.
2–c Explain the difference between a product cost and a period cost.
2–d Distinguish between (1) a variable cost, (2) a fixed cost, and (3) a mixed cost.
2–e What effect does an increase in volume have on—
1. Unit fixed costs?
2. Unit variable costs?
3. Total fixed costs?
4. Total variable costs?

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