Business Accounting
Test Preparation
Course Introduction
Business Accounting introduces students to the fundamental principles and practices of accounting as they apply to business organizations. This course covers key concepts such as the accounting cycle, preparation and analysis of financial statements, and the interpretation of accounting information for decision-making purposes. Students will explore topics including assets, liabilities, equity, revenues, and expenses, along with the regulatory environment of accounting and ethical considerations. Practical exercises and case studies will help develop essential skills in bookkeeping, financial reporting, and understanding the role of accounting in business operations and strategy.
Recommended Textbook
Horngrens Cost Accounting A Managerial Emphasis 3rd Australian Edition by Charles Horngren
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21 Chapters
3782 Verified Questions
3782 Flashcards
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Chapter 1: Management Accounting in Context
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200 Verified Questions
200 Flashcards
Source URL: https://quizplus.com/quiz/70842
Sample Questions
Q1) Management accountants help managers track performance on the chosen key success factors relative to the performance of itself in previous years.
A)True
B)False
Answer: False
Q2) When ________ are aligned with key success factors,the value of the business relationship blossoms and grows for the benefit of both the company and the customer.
A)strategies
B)values
C)cores competencies
D)ethics
Answer: C
Q3) Distribution refers to promoting and selling products or services to customers or prospective customers.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Different Costs for Different Purposes
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324 Verified Questions
324 Flashcards
Source URL: https://quizplus.com/quiz/70843
Sample Questions
Q1) 'Total manufacturing costs' consists of which of the following?
A)Direct manufacturing labour costs + conversion costs
B)Direct materials + conversion costs
C)Direct materials + prime costs
D)Direct manufacturing labour costs + prime costs
Answer: B
Q2) For the purposes of making decisions about pricing and which products provide the most profits,the manager is interested in the overall (total)profitability of different products and,consequently,assigns costs incurred in all business functions of the value chain to the different products.
A)True
B)False
Answer: True
Q3) Debated items that some companies include as direct manufacturing labour include:
A)holiday pay.
B)fringe benefits.
C)training time.
D)All of these answers are correct.
Answer: D
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Chapter 3: Determining How Costs Behave
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182 Verified Questions
182 Flashcards
Source URL: https://quizplus.com/quiz/70844
Sample Questions
Q1) Which cost estimation method analyses accounts in the subsidiary ledger as variable,fixed,or mixed using qualitative methods?
A)The account analysis method
B)The conference method
C)The industrial engineering method
D)The quantitative analysis method
Answer: A
Q2) What is the estimated total cost at an operating level of 2850 hours?
A)$34 736
B)$33 240
C)$25 692
D)$32 016
Answer: B
Q3) An inaccurate cost function with a constant that is estimated too high may MOST likely result in:
A)replicating processes that are truly cost saving.
B)predicting total costs that are too low.
C)promoting a product that is actually less profitable than budgeted.
D)evaluating a weak manager as providing strong performance.
Answer: D
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Chapter 4: Costvolumeprofit Analysis
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211 Verified Questions
211 Flashcards
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Sample Questions
Q1) Which one of the following is not a requirement for calculating the absorption costing break-even point?
A)Variable operating costs
B)Fixed manufacturing costs
C)Unit level of production
D)Contribution margin per unit
Q2) In CVP analysis,variable costs include direct variable costs,but do not include indirect variable costs.
A)True
B)False
Q3) There is no unique break-even point when there are multiple cost drivers.
A)True
B)False
Q4) Margin of safety is reported on the contribution income statement.
A)True
B)False
Q5) 'Contribution margin' and 'gross margin' are terms that can be used interchangeably.
A)True
B)False
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Chapter 5: Estimating the Cost of Producing Services
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) All direct materials are generally added to the process at one time and all __________ costs are generally added to the process evenly through time.
A)conversion
B)labour
C)overhead
D)activity
Q2) Fairness and ability-to-bear are more problematic criteria than cause-and-effect or benefits received,and are thus less frequently used.
A)True
B)False
Q3) A cost _______ causes a change in the cost of an activity and has an effect on costs.
A)driver
B)pool
C)allocation
D)tracer
Q4) In general,the more complex the cost allocations,the higher the education costs.
A)True
B)False
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Chapter 6: Estimating the Costs of Products and Inventory
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356 Verified Questions
356 Flashcards
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Sample Questions
Q1) In the computation of the cost per equivalent unit,the weighted-average method of process costing considers all the costs:
A)that have entered work in process during the current accounting period from the units started or transferred in minus the costs associated with ending inventory.
B)that have entered work in process during the current accounting period from the units started or transferred in plus the costs associated with ending inventory.
C)entering work in process from the units in beginning inventory plus the costs for the work completed during the current accounting period.
D)costs that have entered work in process from the units started or transferred in during the current accounting period.
Q2) Gross margin percentage can be used to compare the profitability of different jobs. A)True B)False
Q3) Direct costs are allocated to the cost object using a cost-allocation method. A)True
B)False
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8
Chapter 7: Target Costing, Managing Activities and Managing Capacity
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154 Verified Questions
154 Flashcards
Source URL: https://quizplus.com/quiz/70848
Sample Questions
Q1) ________ is the continuing reduction in the demand for a company's products that occurs when competitor prices are not met.
A)Downward demand spiral
B)Normal capacity
C)Theoretical capacity
D)Practical capacity
Q2) Graphic analysis of incurred and locked-in costs provides several insights as to how the different concepts influence decisions.Which of the following statements is FALSE?
A)When and how costs are locked in are more important than when and how costs are incurred.
B)Costs are generally locked in before they are incurred.
C)Most costs are locked in during the manufacturing process.
D)After a product's design has been approved,costs are difficult to influence.
Q3) When actual production is below practical capacity,there is unused capacity in the distribution function as well as in the production function.
A)True
B)False
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Page 9
Chapter 8: Activity-Based Management and Activity-Based Costing
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230 Verified Questions
230 Flashcards
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Sample Questions
Q1) Where outputs consume resources ________,the management accountant traces these to the cost objects.
A)gradually
B)indirectly
C)spontaneously
D)directly
Q2) Which method of allocation probably best estimates actual overhead costs used? Why?
A)Single direct labour-hours cost driver because it is the easiest to analyse and interpret.
B)Three activity-cost drivers because they best reflect the relative consumption of resources.
C)Single direct labour-hours cost driver because it is best to allocate total costs uniformly to individual jobs.
D)Three activity-cost drivers because product costs can be significantly cross-subsidised.
Q3) Corporate costs do not belong to a particular production centre.
A)True
B)False
Page 10
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Chapter 9: Pricing and Customer Profitability
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171 Verified Questions
171 Flashcards
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Sample Questions
Q1) The cost of visiting customers is an example of a customer output unit-level cost.
A)True
B)False
Q2) ________ categorises costs related to customers into different cost pools on the basis of either different classes of cost drivers or different degrees of difficulty in determining the cause-and-effect (or benefits-received)relationships.
A)Customer revenues
B)Price discounting
C)Customer-cost hierarchy
D)Customer-profitability analysis
Q3) A ________ formula for pricing does not require a detailed analysis of cost behaviour patterns to separate costs into fixed and variable components for each product.
A)variable cost
B)fixed cost
C)full-cost
D)activity cost
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11
Chapter 10: Decision Making and Relevant Information
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211 Verified Questions
211 Flashcards
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Sample Questions
Q1) A company is considering adding a fourth product to use available capacity.A relevant factor to consider is that corporate costs can now be allocated over four products rather than only three.
A)True
B)False
Q2) If Flowers For Everyone replaces the existing delivery van with the new one,over the next 10 years operating profit will:
A)decrease by $180 000.
B)increase by $130 000.
C)decrease by $130 000.
D)None of these answers are correct.
Q3) Opportunity costs:
A)result in a cash outlay.
B)should be maximised for the best decision.
C)only are considered when selecting among alternatives.
D)are recorded in the accounting records.
Q4) All variable costs are relevant and all fixed costs are irrelevant.
A)True
B)False
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Chapter 11: Budgeting, Management Control and Responsibility Accounting
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215 Verified Questions
215 Flashcards
Source URL: https://quizplus.com/quiz/70852
Sample Questions
Q1) Even in the face of changing conditions,attaining the original budget is critical.
A)True
B)False
Q2) Cash collections for September are:
A)$102 000.
B)$86 700.
C)$99 500.
D)$71 500.
Q3) A responsibility centre is a part,segment,or subunit of an organisation,whose manager is accountable for a specified set of activities.
A)True
B)False
Q4) ________ budgeting and budgeting for specific activities are key building blocks of the master budget.
A)Master
B)Kaizen
C)Cash
D)Capital
Page 13
Q5) Describe the benefits to an organisation of preparing an operating budget.
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Chapter 12: Flexible Budgets, Direct Cost Variances and Management Control
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246 Verified Questions
246 Flashcards
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Sample Questions
Q1) For any actual level of output,the efficiency variance is the difference between actual quantity of input used and the budgeted quantity of input allowed to produce actual output,multiplied by the actual price.
A)True
B)False
Q2) September's direct material flexible-budget variance is:
A)$100.00 favourable.
B)$100.00 unfavourable.
C)$75.00 unfavourable.
D)None of these answers are correct.
Q3) What is the total static-budget variance in terms of the contribution margin?
A)$200 000 unfavourable
B)$700 000 favourable
C)$900 000 favourable
D)$360 000 unfavourable
Q4) What is the market-share variance?
A)$800 F
B)$1500 U
C)$500 U
D)$1100 F
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Chapter 13: Flexible Budgets, Overhead Cost Variances and Management Control
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170 Verified Questions
170 Flashcards
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Sample Questions
Q1) Caution is appropriate before interpreting the production-volume variance as a measure of the economic cost of unused capacity.
A)True
B)False
Q2) A crucial point to keep in mind is that in standard costing,fixed overhead cost is treated as if it is a variable cost.
A)True
B)False
Q3) Calculate the production-volume variance for fixed set-up overhead costs.
A)$250 unfavourable
B)$1800 unfavourable
C)$250 favourable
D)$1800 favourable
Q4) Managers should use unitised fixed manufacturing overhead costs for planning and control.
A)True
B)False
Page 15
Q5) Explain why sales-volume variance could be helpful to managers.
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Chapter 14: Allocation of Support-Department Costs,
Common Costs and Revenues
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137 Verified Questions
137 Flashcards
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Sample Questions
Q1) Explain the two methods of allocating revenues of a bundled package to the individual products in that package.Describe any special problems associated with each method.
Q2) When allocations are based on ________ usage,user divisions will not know their fixed-cost allocations until the end of the budget period.
A)actual
B)budgeted
C)estimated
D)historic
Q3) If a single-rate cost-allocation method is used,what is the allocation rate per hour used?
A)$100.00
B)$137.50
C)$80.00
D)$146.67
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Chapter 15: Strategy Formation, Strategic Control and the Balanced Scorecard
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157 Verified Questions
157 Flashcards
Source URL: https://quizplus.com/quiz/70856
Sample Questions
Q1) What is the direct manufacturing labour partial productivity,assuming 40 000 units were produced during 2018 and 160 000 direct manufacturing labour-hours were used?
A)0.25 unit per direct manufacturing labour-hour
B)0.75 unit per direct manufacturing labour-hour
C)0.50 unit per direct manufacturing labour-hour
D)1.00 unit per direct manufacturing labour-hour
Q2) What is the direct manufacturing labour partial productivity,assuming 10 000 widgets were produced during 2018 and 40 000 direct manufacturing labour-hours were used?
A)0.25 unit per direct manufacturing labour-hour
B)0.50 unit per direct manufacturing labour-hour
C)1.00 unit per direct manufacturing labour-hour
D)0.75 unit per direct manufacturing labour-hour
Q3) To further company strategy,measures on the balanced scorecard would MOST likely include:
A)an increase in operating profit from productivity gains.
B)manufacturing quality.
C)yield.
D)number of process improvements.
Page 17
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Chapter 16: Quality, Time and the Balanced Scorecard
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) What is the net change in the budget of prevention costs if the procedures are automated in 2018? Will management agree with the changes?
A)$75 000 increase,no
B)$75 000 decrease,yes
C)$94 000 decrease,yes
D)$94 000 increase,yes
Q2) The amount of time from when a customer places an order for a product or requests a service to when the product or service is delivered to the customer is referred to as: A)bottleneck.
B)customer-response time.
C)manufacturing lead time.
D)a time driver.
Q3) Costs incurred to find individual units of products that do not conform to specifications are:
A)prevention costs.
B)appraisal costs.
C)internal failure costs.
D)external failure costs.
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18
Chapter 17: Inventory Management, Just-In-Time and Simplified Costing Methods
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126 Verified Questions
126 Flashcards
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Sample Questions
Q1) In managing inventory,the costs associated with inventory obsolescence are included in which of these cost categories?
A)Ordering costs
B)Labour costs
C)Quality costs
D)Carrying costs
Q2) Which essential costs should be considered when developing inventory-related relevant costs for use in an economic order quantity (EOQ)model? Why?
Q3) Which of the following industries is likely to have the highest cost of goods sold percentage relative to sales?
A)Drug manufacturers
B)Computer manufacturers
C)Retail organisations
D)The percentage will usually depend on the success of a particular company
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Chapter 18: Capital Budgeting and Cost Analysis
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140 Verified Questions
140 Flashcards
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Sample Questions
Q1) Maremount Tyre Company needs to overhaul its auto lift system or buy a new one.The facts have been gathered,and they are as follows:
\[\begin{array} { | l | r | r | }
\hline & \text { Current Machine } & \text { New Machine } \\
\hline \text { Purchase Price, New } & \$ 112500 & \$ 148000 \\
\hline \text { Current book value } & 33500 & \\
\hline \text { Overhaul needed now } & 27500 & \\
\hline \text { Annual cash operating costs } & 63000 & 48000 \\
\hline \text { Current salvage value } & 40000 & \\
\hline \text { Salvage value in five years } & 8000 & 35000 \\
\hline
\end{array}\]
Required:
Which alternative is the most desirable with a current required rate of return of 15%? Show computations,and assume no taxes.
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Chapter 19: Management Control Systems, Transfer Pricing and
Multinational Considerations
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140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/70860
Sample Questions
Q1) The market-based transfer price per blade from the Bat Blade Division to the Assembly Division is:
A)$20
B)$32
C)$40
D)$52
Q2) Which on the following is a benefit of using a market-based transfer price?
A)Profits of the division receiving the products are sacrificed for the overall good of the corporation.
B)Economic viability and profitability of each division can be evaluated individually.
C)Profits of the transferring division are sacrificed for the overall good of the corporation. D)None of these answers are correct.
Q3) Market-based transfer pricing and cost-based transfer pricing are the only two methods for determining transfer prices.
A)True
B)False
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Chapter 20: Performance Measurement, Compensation
and Multinational Considerations
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140 Verified Questions
140 Flashcards
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Sample Questions
Q1) The after-tax average cost of all the long-term funds used by a corporation equals:
A)economic value added.
B)return on investment.
C)weighted-average cost of capital.
D)return on equity.
Q2) Using gross book value as an investment base will result in a lower ROI than using net book value as an investment base.
A)True
B)False
Q3) What is the Coaxial Cables Division's return on sales?
A)0.20
B)0.40
C)0.50
D)0.60
Q4) Evaluating an executive's performance using the annual return on investment would sharpen an executive's long-run focus.
A)True
B)False
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Chapter 21: Measuring and Reporting Sustainability
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50 Flashcards
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Sample Questions
Q1) The International Standards for Environmental Management Systems are ISO 14001 and ISO 14004.
A)True
B)False
Q2) Which of these is not a Global Reporting Initiative principle for ensuring report quality?
A)Clarity
B)Accuracy
C)Length
D)Timeliness
Q3) What is the best way to make businesses take into account the external costs of their activities?
A)Implement fines
B)Internalising those costs
C)Implement penalties
D)None of the above.
Q4) Performing life-cycle analysis for a product may also mean looking at the costs of suppliers and customers.
A)True
B)False
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