Saylor BUS105 Exam Questions Instant Access

Question 1

Wycliff Corporation practices activity-based management at their manufacturing facility. Which of the following events would most likely be the result of a decision made using activity-based management theory?

ADirect labor costs were assigned to work-in-process accounts

BCustomer service representatives responded to vendor complaints

CPlant managers assisted in calculating a plant-wide overhead rate

DThe packaging department was moved closer to the shipping department

Answer : D

Question 2

Coffee Beanz, Inc. currently maintains decentralized operations. The CEO is evaluating whether the company should centralize their operations. Which of the following situations would make centralized operations more beneficial than decentralized?

AThe company just opened a new factory in another state

BThe company is adding five new product lines in the next year

CDecreasing revenues have created a demand for decreasing expenses

DAdditional employees are necessary to manage an increase in production

Answer : C

Question 3

You are the Controller for Healthcare Technology LLC, and you have been tasked with evaluating an upgraded enterprise resource planning system. Which of the following details would be relevant to your decision-making process?

AA customer's sales are growing rapidly

BA vendor replaced a member of its board of directors

CThe company needs a cloud-based document storage system

DThe company's revenues increased by $14,000,000 over the past twelve months

Answer : C

Question 4

This is select financial statement data for the three divisions of Technology Goods, Inc. Assuming all assets are operating assets, what is the return on investment for each division?

A17.8%, 10.0%, 15.9%

B33.1%, 31.3%, 31.2%

C53.0%, 32.0%, 50.9%

D82.2%, 39.0%, 66.0%

Answer : A

Question 5

Strang Tax provides tax consulting services to its clients whom they charge on an hourly basis. They would like to use differential analysis to determine whether profits would change if they dropped certain clients. Which of the following items should be excluded from this analysis?

ARent expenses

BConsulting fees

CWages payable

DProject management costs

Answer : A

Question 6

Which row correctly identifies the calculation to establish standard costs for direct materials, direct labor, and factory overhead?

ARow 1

BRow 2

CRow 3

DRow 4

Answer : D

Question 7

Use the statement of cash flows to calculate the free cash flow.

A$3,000

B$22,000

C$52,000

D$77,000

Answer : A

Saylor Managerial Accounting BUS105 Exam Questions