BUS/475 Sample Final Exam

BUS/475 Sample Final Exam 1. Which of the following is NOT an element of manufacturing overhead? a. Factory employee’s salary b. Depreciation on the factory c. Plant manager’s salary d. Factory repairperson’s wages 2. What accounts are NOT classified in the current assets section of the balance sheet? a. Cash b. Accounts payable c. Security deposits d. Inventory 3. The starting point of a master budget is the preparation of the a. cash budget. b. sales budget. c. production budget. d. budgeted balance sheet. 4. What amounts are not included in Gross Margin? a. Operating expenses This Sample Final Exam is provided as a resource to help familiarize students with the content areas and types of questions that they may encounter when they complete the comprehensive BUS/475 Final Exam in Week Five. The student version of the sample Final does not include the correct answers (as marked below in red). Please feel free to share the sample final questions and answers with your students. Accounting Financial accounting Conceptual foundations Income statement and statement of retained earnings Balance sheet Statement of cash flows Managerial accounting Cost concepts Product costing systems Activities-based costing Cost, volume, and profit analysis Budgeting (except capital budgeting covered under finance) Standard costing Nonroutine decision making International accounting* Accounting Section BUS/475 Sample Final Exam b. Sales c. Cost of goods sold d. Commissions paid 5. At what rate is the income statement converted for US $ comparison? a. Month end b. First day of the month rate c. Average rate d. It is not appropriate to convert to US $ 6. Which list below best describes the major services performed by public accountants? a. Bookkeeping, mergers, and budgets b. Employee training, auditing, and bookkeeping c. Auditing, taxation, management consulting d. Cost accounting, production scheduling, recruiting 7. Jaime Inc. manufactures 2 products, sweaters and jackets. The company has estimated its overhead in the order-processing department to be $180,000. The company produces 50,000 sweaters and 80,000 jackets each year. Sweater production requires 25,000 machine hours, jacket production requires 50,000 machine hours. The company places raw materials orders 10 times per month, 2 times for raw materials for sweaters and the remainder for raw materials for jackets. How much of the order-processing overhead should be allocated to jackets? a. $90,000 b. $120,000 c. $110,770 d. $144,000 8. ABC Bread sells a box of bagels with a contribution margin of 62.5%. Its fixed costs are $150,000 per year. How much sales dollars does ABC Bread need to break-even per year if bagels are its only product? a. $93,750 b. $150,000 c. $240,000 d. $90,000 9. What exists when budgeted costs exceed actual results? a. A budgeting error b. A favorable difference c. An unfavorable difference d. An excess profit 10. Disclosures about inventory should include each of the following EXCEPT a. The basis of accounting b. The costing method c. The quantity of inventory d. The major inventory classifications 11. Which of the following is NOT a part of the accounting process? a. Recording b. Identifying c. Financial decision making d. Communicating 12. The cost principle is the basis for preparing financial statements because it is a. a conservative value. BUS/475 Sample Final Exam b. relevant and objectively measured, and verifiable. c. an international accounting standard. d. the most accurate measure of purchasing power.