Business Decision Making
Exam Practice Tests
Course Introduction
Business Decision Making is a practical course that equips students with the analytical tools and frameworks needed to make informed choices in a dynamic business environment. Through the study of quantitative and qualitative decision-making models, risk assessment, data analysis, and problem-solving techniques, students learn how to evaluate alternative strategies, interpret business data, and justify their recommendations. Real-world case studies and simulations are integrated to develop critical thinking, ethical judgment, and effective communication skills, preparing students to address complex challenges and drive successful outcomes in managerial and organizational contexts.
Recommended Textbook MANAGERIAL ACCOUNTING Version 1.0 by
Kurt Heisinger and Joe Hoyle
Available Study Resources on Quizplus
13 Chapters
878 Verified Questions
878 Flashcards
Source URL: https://quizplus.com/study-set/3571 Page 2
Chapter 1: What Is Managerial Accounting
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/70918
Sample Questions
Q1) According to the IMA Statement of Ethical Professional Practice,competence means that each member has a responsibility for all the following except:
A)refrain from using confidential information for unethical or illegal advantage.
B)maintaining an appropriate level of professional expertise.
C)recognizing and communicating professional limitations.
D)performing professional duties in accordance with relevant laws,regulations and technical standards.
E)None of the above.
Answer: A
Q2) When comparing the characteristics of financial and managerial accounting,which of the following is a focus of managerial accounting?
A)Making future projections for geographic segments of a company.
B)Focusing on users outside the organization including stockholders and creditors.
C)Using performance measures that are exclusively financial in nature.
D)Presenting overall company information in accordance with U.S.GAAP.
E)None of the above.
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: How Is Job Costing Used to Track Production Costs
Available Study Resources on Quizplus for this Chatper
44 Verified Questions
44 Flashcards
Source URL: https://quizplus.com/quiz/70917
Sample Questions
Q1) A movie production company would likely use a job costing system to track revenues and costs.
A)True
B)False
Answer: True
Q2) Assume Clayton Company has an immaterial credit balance in the Manufacturing Overhead account.The entry to close the Manufacturing Overhead account should include a:
A)credit to Finished Goods Inventory.
B)credit to Work in Process Inventory.
C)credit to Cost of Goods Sold.
D)debit to Cost of Goods Sold.
E)None of the answer choices is correct.
Answer: C
Q3) Job cost sheets are used as a subsidiary ledger to the Raw Materials Inventory account.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: How Does an Organization Use Activity-Based
Costing to Allocate Overhead Costs
Available Study Resources on Quizplus for this Chatper
71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/70916
Sample Questions
Q1) Which of the following items is a facility-level activity?
A)Maintenance performed on the factory building.
B)Purchase requisitions issued for raw materials.
C)Direct labor assembling products.
D)Product designed for a specific customer.
E)None of the answer choices is correct.
Answer: A
Q2) Flannery Inc.produces identical tables in large batches.Which of the following would most likely be a product-level cost for Flannery?
A)Quality control costs.
B)Salaries for purchasing and receiving personnel.
C)Research and development for a new line of tables.
D)Electricity costs for plant machinery.
E)None of the answer choices is correct.
Answer: C
Q3) Appraisal costs are the same as detection costs.
A)True
B)False
Answer: True
5
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: How Is Process Costing Used to Track
Production Costs
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/70915
Sample Questions
Q1) Diaz Company uses process costing in its two processing departments-Assembly and Finishing.If the direct labor costs incurred for the Assembly Department totaling $15,000 are to be paid next month,which one of the following journal entries would be made to record this transaction?
A)Wages Payable 15,000
Wages Expense 15,000
B)WIP Inventory - Assembly 15,000
Wages Payable 15,000
C)Wages Payable 15,000
WIP Inventory - Assembly 15,000
D)Wages Expense 15,000
WIP Inventory - Assembly 15,000
E)None of the answer choices is correct.
Q2) A company producing the following product will likely not use process costing?
A)Milk
B)Custom built yachts
C)Oil
D)soda
E)None of the answer choices is correct.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: How Do Organizations Identify Cost Behavior
Patterns
Available Study Resources on Quizplus for this Chatper
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/70914
Sample Questions
Q1) Per unit fixed costs change with changes in activity.
A)True
B)False
Q2) Cost estimates made using activity levels outside the relevant range:
A)Are more accurate.
B)May result in poor decisions.
C)Mean that cost behavior patterns are accurate at all levels of activity.
D)Mean the cost estimates will be relevant.
E)None of the answer choices is correct.
Q3) Variable costs such as direct labor and direct materials typically stay constant on a per unit basis.
A)True
B)False
Q4) All of the following are steps of the high-low method except:
A)stating the results in equation form Y = f + vX.
B)calculating the fixed cost per unit.
C)calculating the variable cost per unit.
D)identifying the high and low activity data points.
E)None of the answer choices is correct.
7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: How Is Cost-Volume-Profit Analysis Used for Decision Making
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/70913
Sample Questions
Q1) All of the following are steps used to find the target profit for companies that incur income taxes except:
A)convert the desired target profit after taxes to target profit before taxes.
B)determine the desired target profit after taxes.
C)convert the desired target profit before taxes to target profit after taxes.
D)use the target profit before taxes to calculate target profit in units or in sales dollars.
E)None of the answer choices is correct.
Q2) A company makes four products.If it sells everything it produces and is only constrained by finding enough skilled labor,then its goal should be to maximize the contribution margin per labor-hour.
A)True
B)False
Q3) Refer to Exhibit 6-3.What is the contribution margin per unit for each product?
A)Mountain bikes: $1,400;Cruising bikes: $1,000
B)Mountain bikes: $560;Cruising bikes: $600
C)Mountain bikes: $800;Cruising bikes: $500
D)Mountain bikes: $600;Cruising bikes: $500
E)None of the answer choices is correct.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: How Are Relevant Revenues and Costs Used to
Make Decisions
Available Study Resources on Quizplus for this Chatper
76 Verified Questions
76 Flashcards
Source URL: https://quizplus.com/quiz/70912
Sample Questions
Q1) Refer to Exhibit 7-9.If the sales value method is used to allocate the $12 in joint costs,how much will be allocated to Deluxe doughnuts?
A)$12
B)$3
C)$10
D)$9
E)None of the answer choices is correct.
Q2) Individual product profitability will vary depending on which allocation method is chosen to allocate joint costs.
A)True
B)False
Q3) Which of the following is not considered relevant when considering a make-or-buy decision?
A)The effect on variable costs.
B)The effect on employee morale.
C)The quality of the outsourced product.
D)The effect on unavoidable fixed costs.
E)None of the answer choices is correct.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: How Is Capital Budgeting Used to Make Decisions
Available Study Resources on Quizplus for this Chatper
71 Verified Questions
71 Flashcards
Source URL: https://quizplus.com/quiz/70911
Sample Questions
Q1) The payback period is typically stated :
A)in days,months,or years.
B)as a percent.
C)as a dollar amount.
D)in the same format as the required rate of return.
E)None of the answer choices is correct.
Q2) Revenue and expense cash flows must be multiplied by one minus the tax rate to get the after-tax cash flow.
A)True
B)False
Q3) Refer to Exhibit 8-2.What is the net present value of Investment B (rounded to the nearest dollar)?
A)$30,000
B)($17,080)
C)$17,080
D)($15,600)
E)None of the answer choices is correct.
Q4) The hurdle rate used to evaluate an investment is also called the discount rate.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: How Are Operating Budgets Created
Available Study Resources on Quizplus for this Chatper
68 Verified Questions
68 Flashcards
Source URL: https://quizplus.com/quiz/70910
Sample Questions
Q1) In the direct materials purchases budget,the key equation used to determine direct materials to be purchased is:
A)Materials needed in production - Desired materials in ending inventory + Materials in beginning inventory.
B)Materials needed in production + Desired materials in ending inventory + Materials in beginning inventory.
C)Materials needed in production + Desired materials in ending inventory - Materials in beginning inventory.
D)Materials needed in production - Desired materials in ending inventory - Materials in beginning inventory.
E)None of the answer choices is correct.
Q2) Sales personnel who are paid a bonus for exceeding budgeted sales have an incentive to underestimate sales when establishing the sales budget.
A)True
B)False
Q3) Conflicts rarely exist between the planning and control phases of budgeting.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: How Do Managers Evaluate Performance Using Cost Variance Analysis
Available Study Resources on Quizplus for this Chatper
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/70909
Sample Questions
Q1) Refer to Exhibit 10-5.What is the variable overhead efficiency variance for the product testing activity?
A)$8,000 favorable
B)$8,000 unfavorable
C)$3,800 unfavorable
D)$3,800 favorable
E)None of the answer choices is correct.
Q2) Most managers prefer attainable standards rather than ideal standards for the following reasons except:
A)attainable standards reflect what really happens in the factory.
B)attainable standards allow for occasional downtime for equipment.
C)attainable standards motivate employees to achieve perfection.
D)attainable standards recognize that some materials might have to be scrapped.
E)None of the answer choices is correct.
Q3) Management by exception is a term used to describe managers who focus solely on variances that are significant.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: How Do Managers Evaluate Performance in
Decentralized Organizations
Available Study Resources on Quizplus for this Chatper
63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/70908
Sample Questions
Q1) Refer to Exhibit 11-5.What is the EVA for the Skis division?
A)$522,500,000
B)$420,500
C)$386,700
D)$436,650
E)None of the answer choices is correct.
Q2) Refer to Exhibit 11-4.What is the operating profit margin for the Chair Division (rounded to the nearest tenth of a percent)?
A)33.3%
B)66.7%
C)14.0%
D)9.3%
E)None of the answer choices is correct.
Q3) An investment center is an organizational segment in which the manager is responsible for costs,revenues,and investment in assets.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 12: How Is the Statement of Cash Flows Prepared and Used
Available Study Resources on Quizplus for this Chatper
65 Verified Questions
65 Flashcards
Source URL: https://quizplus.com/quiz/70907
Sample Questions
Q1) Nickels Inc.prepares its statement of cash flows using the direct method.If Nickels sells equipment for a gain of $35,000 when the book value is $100,000,what amount will be reported on the statement of cash flows operating activities
A)$0
B)($35,000)
C)($65,000)
D)$65,000
E)None of the answer choices is correct.
Q2) Cash payments to reduce long-term debt are included in the operating activities
A)True
B)False
Q3) Refer to Exhibit 12-1.Which of these items would appear in the investing activities
A)1 & 4
B)2 & 5
C)3
D)2,4,& 5
E)None of the answer choices is correct.
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 13: How Do Managers Use Financial and
Nonfinancial Performance Measures
Available Study Resources on Quizplus for this Chatper
62 Verified Questions
62 Flashcards
Source URL: https://quizplus.com/quiz/70906
Sample Questions
Q1) The current ratio is the same as the quick ratio.
A)True
B)False
Q2) A common-size analysis converts each line of financial statement data to an easily comparable amount measured in percent form.
A)True
B)False
Q3) On a common-size balance sheet,current liabilities should be stated as a percentage of:
A)net sales.
B)total assets.
C)total liabilities.
D)total long term liabilities.
E)None of the answer choices is correct.
Q4) All of the following measures focus on short-term liquidity except:
A)current ratio.
B)debt to assets ratio.
C)quick ratio.
D)receivables turnover ratio.
E)None of the answer choices is correct.
To view all questions and flashcards with answers, click on the resource link above. Page 15