Business Administration
Test Preparation
Course Introduction
Business Administration is an interdisciplinary course that introduces students to the fundamental principles and practices of managing organizations effectively. Covering key areas such as management, marketing, finance, operations, and human resources, the course emphasizes strategic planning, decision-making, leadership, and organizational behavior. Through practical case studies and real-world applications, students develop analytical and problem-solving skills essential for navigating the complexities of modern business environments. This foundational knowledge prepares students for various managerial roles and provides a solid base for advanced study in specialized business fields.
Recommended Textbook
Introduction to Managerial Accounting 8th Edition by Peter Brewer
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21 Chapters
4046 Verified Questions
4046 Flashcards
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Page 2
Chapter 1: Managerial Accounting and Cost Concepts
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299 Verified Questions
299 Flashcards
Source URL: https://quizplus.com/quiz/63784
Sample Questions
Q1) Rent on the administrative office space is:
A)a variable cost
B)an opportunity cost
C)a period cost
D)a product cost
Answer: C
Q2) Manufacturing overhead includes:
A)all direct material, direct labor and administrative costs.
B)all manufacturing costs except direct labor.
C)all manufacturing costs except direct labor and direct materials.
D)all selling and administrative costs.
Answer: C
Q3) Dizzy gives out a free T-shirt to every 100th customer entering the park.The cost of this T-shirt would best be described as a:
A)fixed cost
B)mixed cost
C)step-variable cost
D)true variable cost
Answer: C
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Page 3
Chapter 2: Job-Order Costing: Calculating Unit Product Costs
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292 Verified Questions
292 Flashcards
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Sample Questions
Q1) Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.Further assume that the company uses a markup of 50% on manufacturing cost to establish selling prices.The calculated selling price for Job J is closest to:
A)$65,115
B)$67,720
C)$21,705
D)$43,410
Answer: A
Q2) The predetermined overhead rate for the Finishing Department is closest to:
A)$8.80 per direct labor-hour
B)$3.98 per direct labor-hour
C)$12.60 per direct labor-hour
D)$3.80 per direct labor-hour
Answer: C
Q3) An employee time ticket is an hour-by-hour summary of the employee's activities throughout the day.
A)True
B)False
Answer: True
4
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Chapter 3: Job-Order Costing: Cost Flows and External Reporting
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256 Verified Questions
256 Flashcards
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Sample Questions
Q1) The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:
A)credit to Manufacturing Overhead of $62,000
B)debit to Work in Process of $60,000
C)credit to Work in Process of $60,000
D)debit to Manufacturing Overhead of $62,000
Answer: A
Q2) Mackinaw Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.Last year, the Corporation worked 17,000 actual direct labor-hours and incurred $145,000 of actual manufacturing overhead cost.They had estimated at the beginning of the year that 16,000 direct labor-hours would be worked and $144,000 of manufacturing overhead costs incurred.The Corporation had calculated a predetermined overhead rate of $9 per direct labor-hour.The Corporation's manufacturing overhead for the year was:
A)overapplied by $8,000
B)underapplied by $8,000
C)overapplied by $1,000
D)underapplied by $1,000
Answer: A
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Chapter 4: Activity-Based Costing
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230 Verified Questions
230 Flashcards
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Sample Questions
Q1) Activity-based costing involves a two-stage allocation process in which overhead costs are first assigned to activity cost pools and then allocated to products using activity measures.
A)True
B)False
Q2) If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product G1 would be closest to:
A)$412.02 per unit
B)$780.12 per unit
C)$720.63 per unit
D)$691.83 per unit
Q3) The unit product cost of Product F0 under activity-based costing is closest to:
A)$1,395.25 per unit
B)$1,530.38 per unit
C)$1,445.24 per unit
D)$1,709.40 per unit
Q4) An activity rated is computed for each product.
A)True
B)False
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Chapter 5: Process Costing6 Cost-Volume-Profit
Relationships
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139 Verified Questions
139 Flashcards
Source URL: https://quizplus.com/quiz/63778
Sample Questions
Q1) The cost per equivalent unit for materials for the month in the first processing department is closest to:
A)$10.76
B)$10.04
C)$10.72
D)$11.49
Q2) The cost reconciliation report has two sections: "Costs to be accounted for" followed by "Costs accounted for".The "Costs accounted for" portion of the cost reconciliation report includes the cost of ending work in process inventory and the cost of beginning work in process inventory.
A)True
B)False
Q3) Which of the following types of companies would typically use process costing rather than job-order costing?
A)A small appliance repair shop.
B)A manufacturer of commercial passenger aircraft.
C)A specialty equipment manufacturer.
D)A breakfast cereal manufacturer.
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Chapter 6: Cost-Volume-Profit Relationships
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260 Verified Questions
260 Flashcards
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Sample Questions
Q1) In the most recent month, Sardella Corporation's total contribution margin was $46,200 and its net operating income $13,200.
Required:
a.Compute the degree of operating leverage to two decimal places.
b.Using the degree of operating leverage, estimate the percentage change in net operating income that should result from a 10% increase in sales.
Q2) This question is to be considered independently of all other questions relating to Houpe Corporation.Refer to the original data when answering this question. Management is considering using a new component that would increase the unit variable cost by $5.Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 300 units.What should be the overall effect on the company's monthly net operating income of this change?
A)decrease of $2,100
B)decrease of $27,900
C)increase of $2,100
D)increase of $27,900
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Chapter 7: Variable Costing and Segment Reporting: Tools for Management
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291 Verified Questions
291 Flashcards
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Sample Questions
Q1) Generally speaking, net operating income under variable and absorption costing will:
A)always be equal.
B)never be equal.
C)be equal only when production and sales are equal.
D)be equal only when production exceeds sales.
Q2) Common fixed expenses should not be allocated to business segments when performing break-even calculations and making decisions.
A)True
B)False
Q3) The unit product cost under absorption costing in Year 1 is closest to:
A)$36.00
B)$21.00
C)$57.00
D)$62.00
Q4) Absorption costing treats all manufacturing costs as product costs.
A)True
B)False
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Chapter 8: Master Budgeting
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236 Verified Questions
236 Flashcards
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Sample Questions
Q1) Wasilko Corporation produces and sells one product. a.The budgeted selling price per unit is $114.Budgeted unit sales for February is 9,900 units.
B.Each unit of finished goods requires 6 pounds of raw materials.The raw materials cost $4.00 per pound.
C.The direct labor wage rate is $24.00 per hour.Each unit of finished goods requires 2.4 direct labor-hours.
D.Manufacturing overhead is entirely variable and is $9.00 per direct labor-hour.
E.The variable selling and administrative expense per unit sold is $1.60.The fixed selling and administrative expense per month is $70,000.
The estimated net operating income (loss)for February is closest to:
A)$50,000
B)$91,080
C)$21,080
D)$36,920
Q2) The production budget is typically prepared prior to the sales budget.
A)True
B)False
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Page 10
Chapter 10: Performance Measurement in Decentralized Organizations
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180 Verified Questions
180 Flashcards
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Sample Questions
Q1) A manufacturing cycle efficiency (MCE)ratio of less than 1.00 is desirable because this is the ratio of non-value-added time to throughput time.
A)True
B)False
Q2) What was the West Division's minimum required return in August?
A)$45,600
B)$42,200
C)$53,618
D)$8,018
Q3) Financial measures such as ROI and residual income as well as operating measures may be included in a balanced scorecard.
A)True
B)False
Q4) The division's margin used to compute ROI is closest to:
A)29.6%
B)35.1%
C)21.9%
D)7.7%
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Chapter 11: Differential Analysis: The Key to Decision Making
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203 Verified Questions
203 Flashcards
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Sample Questions
Q1) At what selling price would the new product be just breaking even?
A)$246 per unit
B)$250 per unit
C)$232 per unit
D)$282 per unit
Q2) If Melbourne decides to purchase the subcomponent from the outside supplier, the annual financial advantage (disadvantage)would be:
A)$120,000
B)$20,000
C)($120,000)
D)($20,000)
Q3) According to the company's accounting system, what is the net operating income earned by product V86O? Include all costs in this calculation-whether relevant or not.
A)$78,000
B)($5,000)
C)($78,000)
D)$5,000
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12
Chapter 12: Capital Budgeting Decisions
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179 Verified Questions
179 Flashcards
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Sample Questions
Q1) The net present value of the overhaul alternative is closest to:
A)$(750,300)
B)$(725,800)
C)$(975,800)
D)$(987,400)
Q2) The required rate of return is the maximum rate of return that an investment project must yield to the acceptable.
A)True
B)False
Q3) The net present value of Project B is closest to:
A)$77,805
B)$127,805
C)$55,005
D)$105,005
Q4) The profitability index of investment project X is closest to:
A)0.11
B)0.88
C)1.12
D)0.12
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Chapter 9: Flexible Budgets Standard Costs and Variance Analysis
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461 Verified Questions
461 Flashcards
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Sample Questions
Q1) The spending variance for supplies cost for the month should be:
A)$180 U
B)$700 U
C)$700 F
D)$180 F
Q2) The variable overhead efficiency variance for June is:
A)$760 F
B)$760 U
C)$741 F
D)$741 U
Q3) The variable overhead efficiency variance for January is:
A)$1,496 F
B)$1,496 U
C)$1,540 U
D)$1,540 F
Q4) The labor efficiency variance for the month is closest to:
A)$5,425 U
B)$5,425 F
C)$5,325 U
D)$5,325 F
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Chapter 13: Statement of Cash Flows
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132 Flashcards
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Sample Questions
Q1) The net cash provided by (used in)operating activities for the year was:
A)$117
B)$45
C)$36
D)$116
Q2) Cash received from the sale of equipment the company had used in its own operations would be considered an operating activity on a statement of cash flows.
A)True
B)False
Q3) The net cash provided by (used in)operating activities for the year was:
A)$21
B)$75
C)$27
D)$69
Q4) When computing the net cash provided by operating activities under the indirect method on the statement of cash flows, a decrease in common stock would be subtracted from net income.
A)True
B)False
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Chapter 14: Financial Statement Analysis
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289 Flashcards
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Sample Questions
Q1) The company's average collection period for Year 2 is closest to:
A)35.7 days
B)1.1 days
C)1.0 days
D)35.2 days
Q2) The company's operating cycle for Year 2 is closest to:
A)70.8 days
B)10.0 days
C)87.7 days
D)148.5 days
Q3) The company's total asset turnover for Year 2 is closest to:
A)1.17
B)11.04
C)0.09
D)0.85
Q4) Norton Inc.could improve its current ratio of 2 by:
A)paying a previously declared stock dividend.
B)writing off an uncollectible receivable.
C)selling merchandise on credit at a profit.
D)purchasing inventory on credit.
Page 16
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Chapter 15: Job-Order Costing: Cost Flows and External Reporting
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28 Verified Questions
28 Flashcards
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Sample Questions
Q1) In the Excel, or spreadsheet, approach to recording financial transactions, if manufacturing overhead is underapplied by X dollars, the Manufacturing Overhead account is closed out by deducting X dollars in the Manufacturing Overhead column and deducting X dollars in the Retained Earnings column.
A)True
B)False
Q2) In the Excel, or spreadsheet, approach to recording financial transactions, factory depreciation is recorded as a decrease in the Property, Plant, and Equipment column and as a decrease in the Retained Earnings column.
A)True
B)False
Q3) In the Excel, or spreadsheet, approach to recording financial transactions, raw material purchases on account are recorded as increases in the Raw Materials inventory column and decreases in the Accounts Payable column.
A)True
B)False
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Chapter 16: Process Costing6 Cost-Volume-Profit
Relationships
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) Equivalent units of production for a process costing system using the FIFO method are equal to:
A)Units completed during the period + Equivalent units in the ending work in process inventory.
B)Units transferred out + Equivalent units in ending work in process inventory + Equivalent units in beginning work in process inventory.
C)Units started and completed during the period + Equivalent units in the ending work in process inventory.
D)Units completed during the period and transferred out.
Q2) What total amount of cost should be assigned to the units in work in process on February 28?
A)$29,680
B)$42,700
C)$44,520
D)$53,200
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Page 18
Chapter 17: Cost-Volume-Profit Relationships
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Sample Questions
Q1) The best estimate of the total monthly fixed manufacturing cost is:
A)$221,200
B)$391,800
C)$173,800
D)$126,400
Q2) Using the high-low method of analysis, what are the company's estimated total fixed selling and administrative expenses per year?
A)$60,000
B)$174,000
C)$150,000
D)$162,000
Q3) Using the high-low method of analysis, the estimated variable cost per machine hour for electricity is closest to:
A)$0.40
B)$0.65
C)$0.70
D)$0.67
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19
Chapter 18:Flexible Budgets, Standard Costs, and Variance Analysis
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177 Verified Questions
177 Flashcards
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Sample Questions
Q1) The volume variance was:
A)$5,640 U
B)$5,640 F
C)$752 U
D)$752 F
Q2) The variable overhead efficiency variance for April was:
A)$15,000 Unfavorable
B)$23,000 Unfavorable
C)$38,000 Favorable
D)$38,000 Unfavorable
Q3) The variable component of the predetermined overhead rate is closest to:
A)$1.76 per labor-hour
B)$2.36 per labor-hour
C)$2.20 per labor-hour
D)$1.94 per labor-hour
Q4) The fixed manufacturing overhead volume variance for the period is closest to:
A)$1,240 U
B)$496 F
C)$1,736 F
D)$516 F
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Chapter 19: Flexible Budgets, Standard Costs, and Variance Analysis
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140 Verified Questions
140 Flashcards
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Sample Questions
Q1) When the work in process is completed and transferred to finished goods in transaction (e)above, the Finished Goods inventory account will increase (decrease)by:
A)$746,640
B)($771,325)
C)($746,640)
D)$771,325
Q2) When applying fixed manufacturing overhead to production, the Work in Process inventory account will increase (decrease)by:
A)($147,700)
B)($145,920)
C)$147,700
D)$145,920
Q3) When the company closes its standard cost variances, the Cost of Goods Sold will increase (decrease)by:
A)$34,300
B)($34,300)
C)$66,810
D)($66,810)
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Chapter 20: A Capital Budgeting Decisions
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Sample Questions
Q1) (Ignore income taxes in this problem.)How much would you have to invest today in the bank at an interest rate of 8% to have an annuity of $4,800 per year for 7 years, with nothing left in the bank at the end of the 7 years? Select the amount below that is closest to your answer.
A)$33,600
B)$2,798
C)$24,989
D)$31,111
Q2) (Ignore income taxes in this problem.)At an interest rate of 14%, approximately how much would you need to invest today if you wanted to have $2,000,000 in 10 years?
A)$383,436
B)$540,000
C)$740,741
D)$1,043,200
Q3) The present value of a cash flow increases as it moves further into the future.
A)True
B)False
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Chapter 21: A Statement of Cash Flows
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Sample Questions
Q1) On the statement of cash flows, the income tax expense adjusted to a cash basis would be:
A)$47,000
B)$39,000
C)$31,000
D)$49,000
Q2) The net cash provided by (used in)financing activities for the year was:
A)$(19)
B)$(53)
C)$1
D)$(71)
Q3) During the year the balance in the Accounts Receivable account increased by $6,000.In order to adjust the company's net income to a cash basis using the direct method on the statement of cash flows, it would be necessary to:
A)subtract the $6,000 from the sales revenue reported on the income statement.
B)add the $6,000 to the sales revenue reported on the income statement.
C)subtract the $6,000 from the cost of goods sold reported on the income statement.
D)add the $6,000 to the cost of goods sold reported on the income statement.
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23