Business Administration
Review Questions
Course Introduction
Business Administration is a multidisciplinary field that focuses on the organization, planning, and analysis of business activities and processes. This course provides students with a fundamental understanding of core business functions such as management, marketing, finance, accounting, human resources, and operations. Students will explore concepts related to strategic decision-making, leadership, innovation, and organizational behavior, equipping them with the skills necessary to manage resources effectively, solve complex problems, and adapt to dynamic business environments. By integrating theory with practical applications, the course prepares students for diverse career opportunities in both public and private sectors, as well as for entrepreneurial endeavors.
Recommended Textbook
Introduction to Management Accounting 16th Edition by Charles T. Horngren
Available Study Resources on Quizplus 17 Chapters
2438 Verified Questions
2438 Flashcards
Source URL: https://quizplus.com/study-set/3605
Page 2
Chapter 1: Managerial Accounting,the Business
Organization,and Professional Ethics
Available Study Resources on Quizplus for this Chatper
137 Verified Questions
137 Flashcards
Source URL: https://quizplus.com/quiz/71589
Sample Questions
Q1) Starbucks generates many financial reports to evaluate the operating performance of each store at the end of each quarter.The financial reports are an example of
A) scorekeeping
B) attention directing
C) problem-solving
D) management auditing
Answer: A
Q2) Line managers are directly involved with making and selling the organization's products or services.
A)True
B)False
Answer: True
Q3) When designing an accounting information system for management,which governmental regulations are NOT important?
A) Sarbanes-Oxley Act
B) Foreign Corrupt Practices Act
C) Tax rules promulgated by Internal Revenue Service
D) Six Sigma Act
Answer: D
Page 3
To view all questions and flashcards with answers, click on the resource link above.
Chapter 2: Introduction to Cost Behavior and Cost Volume
Profit Relationships
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/71588
Sample Questions
Q1) On a cost-volume-profit graph,at the point where the Total Revenue line intersects the Total Cost line,________.
A) net income is positive
B) net income is negative
C) net income is zero
D) not enough information is given
Answer: C
Q2) Falls Company has budgeted sales of $120,000 based on 80,000 units.The margin of safety is $1,000.What is the break-even point in dollars?
A) $81,000
B) $119,000
C) $120,000
D) $121,000
Answer: B
Q3) An assumption of the CVP analysis is that changes in efficiency are expected.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Measurement of Cost Behavior
Available Study Resources on Quizplus for this Chatper
136 Verified Questions
136 Flashcards
Source URL: https://quizplus.com/quiz/71587
Sample Questions
Q1) When referring to a cost function,plausibility refers to whether you can rely upon the cost function for predicting the future.
A)True
B)False
Answer: False
Q2) During an engineering analysis,knowledge about new costs may be obtained from experiments with prototypes.
A)True
B)False
Answer: True
Q3) In a graph of a mixed cost function,the y-axis is ________ and the x-axis is
A) fixed cost; cost driver activity
B) fixed cost; variable cost per unit
C) mixed cost; volume in units
D) cost; cost driver activity
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Cost Management Systems and Activity-Based
Costing
Available Study Resources on Quizplus for this Chatper
143 Verified Questions
143 Flashcards
Source URL: https://quizplus.com/quiz/71586
Sample Questions
Q1) Indirect manufacturing costs are the same as manufacturing overhead costs. A)True
B)False
Q2) When a laptop computer is the cost object,the keyboard would be classified as a(n)________.
A) direct cost
B) allocated cost
C) indirect cost
D) unallocated cost
Q3) A cost pool is a group of individual costs that is allocated to cost objects.
A)True
B)False
Q4) Which of the following costs is a direct cost for a manufactured product?
A) Depreciation Expense on factory equipment used for several products
B) Wages Expense of an assembly worker who works specifically on the product
C) Accountants who determine the product costs for all the products manufactured
D) Factory Supervisor Salary Expense where the supervisor oversees the production of several different types of products
Page 6
Q5) List and explain five reasons why more firms are adopting activity-based costing systems.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Relevant Information for Decision Making With a
Focus on Pricing Decisions
Available Study Resources on Quizplus for this Chatper
136 Verified Questions
136 Flashcards
Source URL: https://quizplus.com/quiz/71585
Sample Questions
Q1) When managers use the decision process to make decisions,which information is used to make predictions about the amount of expected sales for Product XYZ?
A) historical data from the accounting system only
B) data outside the accounting system only
C) data outside the organization only
D) A and B
Q2) Which of the following statements is FALSE about information used for decision making?
A) Precise but irrelevant information is worthless for decision making.
B) Imprecise but relevant information can be useful for decision making.
C) Relevant information must be reasonably accurate but not precisely so.
D) Relevant information must be totally accurate or it is useless.
Q3) Full cost means the total of all manufacturing costs.
A)True
B)False
Q4) Relevant information is the historical costs and revenues that differ due to alternative courses of action.
A)True
B)False
7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Relevant Information for Decision Making With a
Focus on Operational Decisions
Available Study Resources on Quizplus for this Chatper
148 Verified Questions
148 Flashcards
Source URL: https://quizplus.com/quiz/71584
Sample Questions
Q1) A company can sell any mix of Product A and Product B at full capacity.The company has 100,000 hours of capacity.The demand for each product exceeds the capacity.It takes one hour to make one unit of Product A and two hours to make one unit of Product B.The following information is available: \(\begin{array}{ll}&\text { Product A }&\text { Product B }\\ \text { Units produced from capacity available }&100,000 & 50,000 \\ \text { Contribution margin per unit }&\$ 20 & \$ 30 \end{array}\)
If capacity is the limiting factor,which product should be produced?
A) 0 units of Product A and 50,000 units of Product B
B) 20,000 units of Product A and 30,000 units of Product B
C) 30,000 units of Product A and 20,000 units of Product B
D) 100,000 units of Product A and 0 units of Product B
Q2) Which of the following is(are)characteristic(s)of joint products?
A) when two or more products can be identified before the split-off point.
B) when two or more products have significant sales value.
C) when two or more products are not separately identifiable as individual products until the split-off point.
D) B and C
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Introduction to Budgets and Preparing the Master Budget
Available Study Resources on Quizplus for this Chatper
148 Verified Questions
148 Flashcards
Source URL: https://quizplus.com/quiz/71583
Sample Questions
Q1) Misuse of budgets can lead to incentives to cheat and lie.Cheating and lying may take the form of ________.
A) making short-run decisions to increase profits that are not in the company's best long-run interests
B) budgetary slack
C) decreasing profits when actual profits significantly exceed the profit target D) all of the above
Q2) The first step in preparing the financial budget is the ________.
A) cash budget
B) capital budget
C) operating expense budget
D) sales budget
Q3) The total amount of cash collections from customers by month appears on the ________.
A) sales budget
B) operating expense budget
C) cash budget
D) budgeted balance sheet
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Flexible Budgets and Variance Analysis
Available Study Resources on Quizplus for this Chatper
143 Verified Questions
143 Flashcards
Source URL: https://quizplus.com/quiz/71582
Sample Questions
Q1) The following information is for Brankov Corporation: Direct Materials (measured in pounds)
\(\begin{array}{ll}
\text { Standard price per unit of input } & \$ 20 \\
\text { Actual price per unit of input } & \$ 18 \\
\text { Standard inputs per unit of output } & 3 \text { pounds } \\
\text { Actual units of input } & 8,300 \text { pounds } \\
\text { Actual units of output } & 2,770 \text { units } \end{array}\)
What is the flexible budget variance for direct materials?
A) $16,400 Favorable
B) $16,400 Unfavorable
C) $16,800 Favorable
D) $16,800 Unfavorable
Q2) Which of the following is NOT an example of efficient performance?
A) Direct labor hours used per unit were less than expected.
B) Direct material used per unit was less than expected.
C) More outputs were achieved with less inputs than predicted.
D) More outputs were produced than expected.
Q3) ......
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Management Control Systems and Responsibility Accounting
Available Study Resources on Quizplus for this Chatper
148 Verified Questions
148 Flashcards
Source URL: https://quizplus.com/quiz/71581
Sample Questions
Q1) Which of the following is NOT an appraisal cost for quality control?
A) inspection and testing of purchased materials
B) product quality audits
C) maintenance of test equipment
D) training program for material suppliers
Q2) The first and most basic component in a management control system is the employee's goals.
A)True
B)False
Q3) The components of a successful organization are organizational learning,business process improvement,________ and ________.
A) profitability; organizational culture
B) profitability; customer satisfaction
C) customer satisfaction; financial strength
D) goal congruence; managerial effort
Q4) Productivity is a measure of inputs divided by outputs.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Management Control in Decentralized Organizations
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/71580
Sample Questions
Q1) In agency theory,risk to the manager is defined as ________.
A) probability that a desired outcome will not be achieved
B) possibility that performance will be measured inaccurately C) probability that an undesirable outcome will be achieved
D) the influence of uncontrollable factors on a manager's performance
Q2) The variable cost of Part X is $50 per unit and the full cost of the part is $80 per unit.The part is produced in Country Z and transferred to a plant in Country B.Country Z has a 10% income tax rate.Country B has a 50% income tax rate and an import duty equal to 10% of the price of the item.Part X can be transferred at full cost or variable cost.Assume Part X is transferred at full cost.By using full cost instead of variable cost for the transfer price,the net savings is ________.
A) $3 per unit
B) $6 per unit
C) $9 per unit
D) $15 per unit
Q3) For multinational companies,worldwide income taxes do not influence the setting of transfer prices.
A)True
B)False
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Capital Budgeting
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/71579
Sample Questions
Q1) In the NPV method,errors in forecasting terminal disposal values are usually not crucial because the present value of these cash flows is small.
A)True
B)False
Q2) When using the NPV model,it is assumed that we can borrow or lend money at the same interest rate.
A)True B)False
Q3) Generally,the most difficult part of capital budgeting decisions is predicting accurately the relevant cash flows.
A)True
B)False
Q4) Discounted-cash-flow models are not based on the theory of compound interest. A)True
B)False
Q5) One purpose of a post-audit is to provide information for improving future predictions of cash flows.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Cost Allocation
Available Study Resources on Quizplus for this Chatper
130 Verified Questions
130 Flashcards
Source URL: https://quizplus.com/quiz/71578
Sample Questions
Q1) Customer profitability does NOT depend on ________.
A) gross margin on products purchased by customer
B) cost of order changes
C) cost of sales returns
D) transfer prices between producing departments
Q2) Companies must assign all production costs and only production costs to products for external financial reporting purposes.
A)True
B)False
Q3) The direct method of cost allocation is generally preferred because it recognizes the effect of support provided by service departments to other service departments.
A)True
B)False
Q4) For external financial reporting,________ costs are assigned to products or services.
A) some production
B) all production
C) all value chain function
D) all production and some value chain function
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Accounting for Overhead Costs
Available Study Resources on Quizplus for this Chatper
152 Verified Questions
152 Flashcards
Source URL: https://quizplus.com/quiz/71577
Sample Questions
Q1) In the immediate write-off approach to overhead variances,overapplied overhead is regarded as a(n)________.
A) addition to the cost of inventory
B) reduction to the cost of inventory
C) increase in cost of goods sold
D) decrease in cost of goods sold
Q2) In the immediate write-off of overhead variances,underapplied overhead is regarded as a(n)________.
A) addition to the cost of inventory
B) deduction from the cost of inventory
C) decrease in cost of goods sold
D) increase in cost of goods sold
Q3) In practice,proration of overhead variances among the affected accounts is undertaken when it materially affects inventory valuations and net income.
A)True
B)False
Q4) The variable-costing income statement uses the contribution-approach format.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Job-Order Costing and Process-Costing Systems
Available Study Resources on Quizplus for this Chatper
154 Verified Questions
154 Flashcards
Source URL: https://quizplus.com/quiz/71576
Sample Questions
Q1) Job-order costing is used.Which of the following accounts is debited when direct labor costs are incurred?
A) Work-In-Process Inventory
B) Finished Goods Inventory
C) Cost of Goods Sold
D) Accrued Payroll
Q2) In a process costing system,which of the following entries is prepared to transfer direct materials from storage to the cooking process?
A) Debit Direct Materials Inventory, Credit Work-In-Process Inventory-Cooking
B) Debit Direct Materials Inventory, Credit Accounts Payable
C) Debit Work-In-Process Inventory-Cooking, Credit Work-In-Process Inventory-Storage
D) Debit Work-In-Process Inventory-Cooking, Credit Direct Materials Inventory
Q3) Product costing is an averaging process.This statement pertains to ________.
A) job order costing only
B) process costing only
C) activity-based costing only
D) all of the above
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 15: Basic Accounting: Concepts, techniques, and Conventions
Available Study Resources on Quizplus for this Chatper
150 Verified Questions
150 Flashcards
Source URL: https://quizplus.com/quiz/71575
Sample Questions
Q1) The acquisition of inventory on account will ________.
A) increase assets and decrease stockholders' equity
B) decrease assets and decrease liabilities
C) increase assets and increase liabilities
D) increase assets and increase stockholders' equity
Q2) The cash basis of accounting recognizes the impact of transactions in the period when ________.
A) revenues and expenses occur
B) cash is received or disbursed
C) the accounting equation changes
D) assets or liabilities change
Q3) Economic resources that a company owns and expects to provide future benefits are called ________.
A) stockholders' equity
B) assets
C) liabilities
D) retained earnings
Q4) The balance sheet shows a company's financial status at only one point in time.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Understanding Corporate Annual Reports:
Basic Financial Statements
Available Study Resources on Quizplus for this Chatper
140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/71574
Sample Questions
Q1) Par value is the value that is printed on the face of the stock certificate.
A)True
B)False
Q2) Leasehold improvements are amortized annually.
A)True
B)False
Q3) What is gross margin?
A) sales minus operating expenses
B) sales minus other expenses
C) sales minus cost of goods sold
D) sales plus other income
Q4) In periods of inflation,FIFO leads to ________ gross profit than LIFO.
A) lower
B) the same
C) higher
D) not enough information
Q5) An example of an investing activity on the statement of cash flows is the purchase of equipment for cash.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Understanding and Analyzing Consolidated Financial Statements
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/71573
Sample Questions
Q1) On January 1,2015,Bernie Company acquired 80 percent of the outstanding shares of Conner Company for $120.At the time of the acquisition,Conner Company's total assets were $550 and total liabilities were $400.The book value and fair value of Conner's assets and liabilities were equal.What is the balance in the Investment in Conner Company account on the consolidated balance sheet immediately after the acquisition of Conner Company's stock? (Assume elimination entries are completed.)
A) $0
B) $120
C) $190
D) $440
Q2) Accountants require investors without significant influence over the decisions of an investee firm to use the ________ method.
A) equity
B) cost
C) market value
D) lower of cost or market
Q3) The Investment in Subsidiary account appears on a consolidated balance sheet.
A)True
B)False
19
To view all questions and flashcards with answers, click on the resource link above.