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BUS 215 Final Exam (100+ Q&A) – Cost Behavior, Overhead, ABC, Inventory Costing & Budgeting – Cal Poly 2025/2026

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This expertly prepared BUS 215 Final Exam study guide from California Polytechnic State University (Cal Poly) for the 2025/2026 academic year features over 100 fully solved multiple-choice questions with correct answers clearly indicated. Designed for students in Managerial Accounting or Introduction to Cost Accounting, this resource offers both conceptual clarity and real-world application. Key topics include: – Cost Behavior & Classification: Fixed, variable, mixed costs, and cost drivers – Direct vs. Indirect Costs and their relation to cost objects – Inventoriable vs. Period Costs under GAAP accounting – High-Low Method and calculation of variable/fixed cost components – Job Order Costing and Work-in-Process (WIP) entries – Absorption vs. Variable Costing and their effects on net income – Overhead Application: Predetermined rates, over/underapplied overhead – ABC (Activity-Based Costing): Activity rates, batch vs. unit-level costs, and cost pool allocations – Cost Allocation principles and departmental cost tracing – Cost of Goods Manufactured (COGM) and Cost of Goods Sold (COGS) journal entries – Operating Income Analysis, LIFO effects, idle capacity treatment, and profitability impacts – Budgeting, variance analysis, and inventory accounting concepts Also included are conceptual True/False questions that test understanding of accounting systems, product cost flows, inventory valuation, and managerial decision-making. The content is highly applicable for students preparing for end-of-term exams or internships in accounting and finance. This document is ideal for: – Undergraduate students in Business, Accounting, or Finance – Learners in Managerial Accounting, Cost Accounting, or Financial Reporting – Students aiming to strengthen quantitative and analytical reasoning for real-world cost structures – Pre-MBA or CPA-track students needing clear foundations in costing methods Keywords: BUS 215, cost accounting, managerial accounting, direct costs, indirect costs, fixed costs, variable costs, job order costing, WIP, cost of goods sold, cost of goods manufactured, absorption costing, variable costing, overhead rate, ABC costing, high-low method, Cal Poly, activity-based costing, inventory costing, predetermined overhead, financial reporting, cost allocation, California Polytechnic State University

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Bus 215 Maber Cal Poly 2025/2026 Exam
Questions and Correct Answers | New
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Cost behavior refers to:




Select one:

A. Whether a particular expense has been ethically incurred.

B. Whether a cost is incurred in a manufacturing, merchandising, or service

company.

C. How costs react to a change in the level of activity. Correct

D. Classifying costs as either inventoriable or period costs. - 🧠 ANSWER

✔✔D.

,Which of the following is an example of a cost that is variable with respect

to the number of units produced?

Select one:

A. Salaries of top marketing executives.

B. Rent on the factory building.

C. Rent on the administrative office building.

D. Direct labor cost, where the direct labor workforce is adjusted to the

actual production of the period. - 🧠 ANSWER ✔✔D.


If the level of activity increases within the relevant range:

Select one:

A. variable cost per unit and total cost also increase.

B. total cost will increase and fixed cost per unit will decrease.

C. fixed cost per unit and total variable cost also increase.

D. variable cost per unit and total fixed costs also increase. - 🧠 ANSWER

✔✔B


A mixed cost is:

,Select one:

A. Never an inventoriable cost.

B. Always a direct cost.

C. A cost with fixed and variable elements.


D. Always an indirect cost. - 🧠 ANSWER ✔✔c


Which of the following is most often (or most likely to be) a mixed cost?




Select one:

A. Monthly electric bill.

B. Manager's salary.

C. Direct materials.


D. Monthly rent payment. - 🧠 ANSWER ✔✔a


At a volume of 8,000 units, Pwerson Company incurred $32,000 in factory

overhead costs, including $12,000 in fixed costs. If volume increases to

9,000 units and both 8,000 units and 9,000 units are within the same

relevant range of activity, then the company would expect to incur total

factory overhead costs of:

COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3

, Select one:

A. $32,000

B. $22,500

C. $20,000


D. $34,500 - 🧠 ANSWER ✔✔d


Farmington Corporation has provided the following production and total

cost data for two levels of monthly production volume. The company

produces a single product.




Production volume.................

6,000 units

7,000 units




Direct materials......................

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