Business Administration
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Course Introduction
Business Administration is a comprehensive course designed to introduce students to the fundamental principles and practices of managing and operating an organization effectively. The course covers key topics such as organizational structure, management functions, strategic planning, human resources, marketing, finance, and operations. Through the study of real-world case studies and practical examples, students will develop critical thinking and decision-making skills necessary for leadership roles in business. Upon completion, students will have a solid understanding of the core elements that drive business success and the tools needed to analyze and solve complex business challenges.
Recommended Textbook Cornerstones of Managerial Accounting 2nd Canadian Edition by Maryanne Mowen
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14 Chapters
2059 Verified Questions
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Chapter 1: Introduction to Managerial Accounting
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Sample Questions
Q1) Managerial accounting is designed primarily for external users.
A)True
B)False
Answer: False
Q2) Activity-based costing is a more detailed approach to determining the cost of goods and services.
A)True
B)False Answer: True
Q3) Financial accounting has its emphasis on the future.
A)True
B)False
Answer: False
Q4) Customer value is the difference between what a customer receives and what they give up when buying a product or service.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Basic Managerial Accounting Concepts
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156 Flashcards
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Sample Questions
Q1) Refer to the Figure.What was Quest's total period expense?
A) $24,000
B) $46,000
C) $190,000
D) $250,000
Answer: B
Q2) What is the formula to calculate gross margin percent?
A) gross margin / cost of goods sold
B) operating income / sales revenue
C) gross margin / sales revenue
D) sales revenue / gross margin
Answer: C
Q3) Allocation means that an indirect cost is assigned to a cost object using a reasonable and convenient method.
A)True
B)False
Answer: True
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Chapter 3: Cost Behaviour
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Sample Questions
Q1) Salary of manager
A)Discretionary
B)Committed
Answer: B
Q2) Refer to the Figure.Which of the following is the fixed cost of leasing when using the high-low method?
A) $420
B) $456
C) $482
D) $516
Answer: B
Q3) What is the formula to calculate a mixed cost?
A) total cost = variable rate × amount of output
B) total cost = total fixed cost + (variable rate × amount of output)
C) total cost = fixed rate × amount of output
D) total cost = total fixed cost - (variable rate × amount of output)
Answer: B
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Page 5
Chapter 4: Costvolumeprofit Analysis: a Managerial Planning Tool
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Sample Questions
Q1) The following information was extracted from the accounting records of Gumbo Corporation: \(\begin{array}{lr}
\text { Selling price per unit } & \$ 60 \\
\text { Variable cost per unit } & \$ 20 \\
\text { Total fixed costs } & \$ 480,000 \end{array}\)
A. What is Gumbos break-even point in units?
B. How many units must be sold to earn operating income of $80,000?
C. What is Gumbos break-even point in units is the selling price increases by 20% and the variable costs decrease by 20%?
D. Using the information in part C, what sales level in dollars is needed to earn an operating income of $80,000?
Q2) Refer to the Figure.Plastic Gym expects tree house demand to increase from 4,000 to 8,000 units per year.What is the new contribution margin ratio?
A) 38%
B) 40%
C) 50%
D) 60%
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Chapter 5: Job-Order Costing
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176 Flashcards
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Sample Questions
Q1) The use of normal costing means that actual overhead costs are NOT assigned directly to jobs.
A)True
B)False
Q2) Which of the following methods of measuring costs associated with production is more widely used in practice?
A) normal costing
B) actual costing
C) authentic costing
D) ordinary costing
Q3) The cost of goods sold appearing on the income statement as an expense is the normal cost of goods sold.
A)True
B)False
Q4) There are two major types of companies: those that use a job-order costing system and those that use process-costing systems. A. Explain the differences between the two types of systems.
B. List 3 examples of each type of company.
Q5) What are the three steps of overhead application?
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Chapter 6: Process Costing
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Sample Questions
Q1) For which process costing method is simplicity the main advantage?
A) LIFO
B) FIFO
C) weighted average
D) exact cost method
Q2) What type of business would likely use process costing?
A) a paper cup manufacturer
B) a cruise ship manufacturer
C) a modular home builder
D) a custom snowboard company
Q3) Which of the following is used to record raw materials,direct labour,and applied overhead costs at the time they are used?
A) raw materials inventory
B) finished goods
C) work in process
D) cost of goods sold
Q4) Firms that offer services CANNOT have work-in-process inventories.
A)True
B)False
Q5) Explain how nonuniform inputs and multiple departments affect process costing.
Page 8
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Chapter 7: Activity-Based Costing and Management
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Sample Questions
Q1) Costs necessary to perform value-added activities with perfect efficiency.
A)Activity analysis
B)Value-added costs
C)Velocity
D)Activity inputs
E)Activity output measure
F)Activity output
Q2) What is the term for the identification and removal of activities that fail to add value?
A) activity selection
B) activity stabilization
C) activity reduction
D) activity elimination
Q3) Which of the following is an example of types of resources consumed in an activity dictionary?
A) activity sharing
B) qualities
C) activity attributes
D) allocations
Q4) What is the activity based costing hierarchy? Give an example for each.
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Chapter 8: Absorption and Variable Costing,and Inventory Management
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Sample Questions
Q1) Which of the following types of costs is NOT included in product cost?
A) overhead
B) direct materials
C) variable selling expense
D) fixed factory overhead
Q2) Stimpson Company sells 900 units of its deluxe product each year.The cost of setting up for one production run is $150; the cost of carrying one unit in inventory for a year is
$3. A. What is the economic order quantity?
B. What is the annual setup cost of the EOQ policy?
C. What is the annual carrying cost of the EOQ policy?
D. What is the total inventory-related cost of the EOQ policy?
Q3) Refer to the Figure.What is the net income for Westwood using the absorption costing method?
A) $452,000
B) $480,000
C) $600,000
D) $2,088,000
Q4) Product cost includes all costs of the company.
A)True
B)False
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Chapter 9: Budgeting, production, cash, and Master Budget
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Sample Questions
Q1) Which is a characteristic of the master budget?
A) It provides a selective financial plan for the organization as a whole.
B) It is typically for a 1-year period corresponding to the fiscal year of the company.
C) It is divided into daily and weekly budgets.
D) It is created externally and imposed on management.
Q2) A company expects the following sales for the coming year: \(\begin{array}{lrrrr} & \text { 1st Quarter } & \text { 2nd Quarter } & \text { 3rd Quarter } & \text { 4th Quarter } \\
\text { Units } & 50,000 & 40,000 & 30,000 & 90,000 \\
\text { Average selling price } & \$ 5 & \$ 4.50 & \$ 5 & \$ 6 \end{array}\) What is the company's budgeted sales revenue for the year?
A) $1,050,000
B) $1,120,000
C) $1,155,000
D) $1,260,000
Q3) Improves communication and coordination
A)Advantage
B)Disadvantage
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11
Chapter 10: Standard Costing: a Managerial Control Tool
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Sample Questions
Q1) What is target cost?
A) Expected sales per unit - desired profit per unit
B) Expected costs per unit - desired profit per unit
C) Desired profit per unit - expected costs per unit
D) Desired costs per unit - expected costs per unit
Q2) Which of the following cost reduction methods is NOT typically used to move the actual cost to target cost?
A) reverse engineering
B) value analysis
C) process improvement
D) forward engineering
Q3) Kaizen costing focuses on the continuous reduction of manufacturing costs of existing products and processes.
A)True
B)False
Q4) How do standard cost systems enhance operational control?
A) through efficiency variances,which indicate the need for corrective action
B) through price variances,which indicate the need for better spending control
C) through standard costs,which indicate the desired cost of a unit of input
D) through actual costs,which indicate the price received for units sold
Page 12
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Chapter 11: Flexible Budgets and Overhead Analysis
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Sample Questions
Q1) Which of the following is the result of fixed overhead being made up of many items?
A) The fixed overhead spending variance is not meaningful.
B) It is not possible to calculate a fixed overhead volume variance.
C) The fixed overhead volume variance will always be unfavourable.
D) A line-by-line comparison of budgeted costs with actual costs provides more information.
Q2) Refer to the Figure.What is the fixed overhead spending variance?
A) $0
B) $28,000 U
C) $28,000 F
D) $32,000 U
Q3) Refer to the Figure.When using an after-the-fact flexible budget,what is the total budget variance?
A) $3,600 U
B) $3,600 F
C) $5,000 U
D) $5,000 F
Q4) How does activity flexible budgeting differ from functional-based flexible budgeting?
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Page 13
Chapter 12: Performance Evaluation and Decentralization
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Sample Questions
Q1) Decreasing inventories leads to a reduction in return on investment (ROI).
A)True
B)False
Q2) The manager of a division is displeased with the ROI of the division.Which of the following steps would increase ROI (holding everything else constant)?
A) increasing investment
B) increasing sales
C) increasing costs
D) decreasing operating income
Q3) Refer to the Figure.What is the residual income for Gamma Division without the additional investment?
A) $4,200
B) $6,000
C) $6,600
D) $24,000
Q4) In the negotiated transfer pricing,the buying division sets the ceiling (maximum possible transfer price)for the bargaining range.
A)True
B)False
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Chapter 13: Short-Run Decision Making: Relevant Costing
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Sample Questions
Q1) Refer to the Figure.Should ProPrinters make or buy the part,and what would be the financial consequence?
A) make the part because it will save $100,000 over buying it
B) buy the part because it will save $100,000 over making it
C) make the part because it will save $1,100,000 over buying it
D) buy the part because it will save $1,100,000 over making it
Q2) Winston Custom Cabinetry makes cabinets to order and prices the completed jobs at product cost plus 40%.Recently,Winston finished a job and billed the customer $560.Suppose direct materials for the job cost $130 and direct labour cost $180.What was the applied overhead for the job?
A) $90
B) $179
C) $250
D) $350
Q3) Target costing can be used most effectively in the design and development stage of the product life cycle.
A)True
B)False
Q4) What are the six steps of the decision-making model?
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Chapter 14: Capital Investment Decisions
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Sample Questions
Q1) Future cash flows expressed in present-value terms.
A)Payback period
B)Accounting rate of return
C)Net present value
D)Internal rate of return
E)Discount rate
F)Annuity
G)Postaudit
H)Compounding of interest
I)CCA Tax Shield
J)Future Value
K)Discounted cash flows
Q2) Which is the most widely used non-discounting model for capital investment decision making?
A) net present value
B) accounting rate of return
C) payback period
D) internal rate of return
Q3) What is a postaudit? What are the advantages and disadvantages of the postaudit?
Q4) What are the limitations of Accounting Rate of Return?
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