The second exam will cover chapters 6, 7 and 8 from the textbook. It will also cover material we have
covered in class that isn’t found in the textbook (e.g., tax implications).
Make sure you bring a calculator, pencils and an eraser. You will not be able to use the calculator
available on cell phones.
15 Multiple Choice Questions @ 4 points each = 60 points
2 Multi-step problems 40 points
Total 100 points
Note: The following is not intended to be a comprehensive list of items to be covered on the exam.
Rather, it is intended to give you a general overview of topics that may be covered.
Chapter 6
Describe key characteristics and graphs of various cost behaviors
Use cost equations to express and predict costs
Use the high-low method to analyze cost behavior
Use variable costing to prepare contribution margin income statements.
Chapter 7
Calculate the unit contribution margin and the contribution margin ratio
Use CVP analysis to find breakeven points and target profit volumes and sales levels
Perform sensitivity analysis in response to changing business conditions
Find breakeven and target profit volumes and sales levels for multiproduct companies
Determine a firm’s margin of safety and operating leverage
Understand and apply principles regarding tax implications
Chapter 8
Describe and identify information relevant to short-term business decisions
Make special order decisions
Make pricing decisions
Make dropping a product, department, or territory decisions
Make product mix decisions
Make outsourcing (make-or-buy) decisions
Make sell as is or process further decisions
Historically, students do not perform as well on the second exam as they did on the first exam. The first
exam primarily covers high-level material which is easier for students to grasp. The second exam covers,
to some extent, applications from the first exam material. It also introduces several other topics which
sometimes are overwhelming to students.
At a minimum you must understand the homework problems, quiz problems and activities we have done
in class. However, simply understanding these problems will in all likelihood be insufficient for an “A”
on the exam. Being able to answer problems very similar to those worked previously (same basic format,
but with different numbers) would be considered “satisfactory” (i.e., worthy of a “C” on the exam). An
“A” (i.e., excellent performance) on the exam will most likely require you to not only understand what we
have done this far, but also be able to apply the underlying concepts of what we have covered.
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Accounting 241 Exam #2 Study Guide
