Saylor BUS105 Exam Questions Instant Access

Question 1

Which of the following statements is a true statement about flexible budgets?

AThe actual number of units sold is irrelevant to a flexible budget

BCost variance analysis is an integral part of preparing a flexible budget

CSelling and administrative expenses are reported in the flexible budget

DThe flexible budget is prepared before the master budget to assist with planning

Answer : C

Question 2

Cost behavior patterns tend to be reliable within which of the following?

AFree cash flow

BA relevant range

CThe current ratio

DA contribution margin

Answer : B

Question 3

SJ Candles should expect the absorption costing and variable costing methods to result in the same 4th quarter operating profit when which of the following is true?

AThey sold all remaining 3rd quarter inventory in 4th quarter and produced zero candles in 4th quarter

BThey started the 4th quarter with no inventory and every candle that was produced in the 4th quarter also sold

CThey started the 4th quarter with no inventory and sold 80% of the candles that were produced in the 4th quarter

DTheir 4th quarter sales included every candle produced in the 4th quarter as well as a few that remained in inventory from the 3rd quarter

Answer : B

Question 4

Cash collections and payments for purchases would be included in which of the following budgets as part of the overall master budget?

ACash budget

BBudgeted income statement

CManufacturing overhead budget

DDirect materials purchases budget

Answer : A

Question 5

SJ Candles manufactures two types of candles. Soy candles require three times the number of labor hours as paraffin candles to produce. If SJ wishes to maximize the limited number of direct labor available to them, which of the following calculations will guide them in their planning?

AFree cash flow

BInventory turnover ratio

CEquivalent units for direct materials

DContribution margin per unit of constraint

Answer : D

Question 6

Using the high-low method, what are the expected production costs for 600 units in December?

A$3,250

B$3,300

C$3,391

D$3,498

Answer : B

Question 7

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

Saylor Managerial Accounting BUS105 Exam Questions