29 Jun Question AMIS 525 Sample Questions for Exam 3
Question
AMIS 525
Sample Questions for Exam 3
This set of 13 questions, taken from prior examinations, covers some topics inChapters 9, 15, 16, 21, 22, and 23.
The purpose of sample questions is to acquaint you with the style andsubstance of typical exam questions over this material.The exam will consist of “multiple choice” type questions, long problems andshort problems. Both calculation type questions and concept type questions,without computations required, will be used.
Please be aware that:
1. sample questions are only one of many resources available to prepare for testingevents – reading textbook chapters and working through chapter examples, studyingthe end-of-chapter review problem and accompanying solution, and reviewing assignedhomework items and the published solutions may be more powerful methods toincrease your understanding of the topics covered in the course.
2. the exam questions used this quarter will be similar but different from these examplequestions – understanding the main concepts in each chapter is critical to success on thetesting events; remembering a sample question may be of some help but the format of aquestion on the same topic often differs rendering memory a distant second choice tounderstanding.
Exam #3
Practice Questions
Page 1
Question 1
WRL Company operates a snack food center at the Hartsfield Airport. On January 1, 2003,RL purchased a special cookie-cutting machine, which has been used for three years. It isJanuary 1, 2006 and WRL is considering whether it should purchase a new, more-efficient cookie-cutting machine. WRL has two options: (1) continue using the old machine or (2) sell theold machine and purchase a new machine. The seller of the new machine isn’t offering a tradein. The following information has been obtained:
Old
New
Machine
Machine
Initial Purchase cost of machines
$80,000
$120,000
Useful life from acquisition date (years)
7
4
Terminal disposal value at the end of useful life onDec. 31, 2009, assumed for depreciation purposes
$10,000
$20,000
Expected annual cash operating costs:
Variable cost per cookie
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