Free Saylor BUS105 Exam Questions

Question 1

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

A : The actual number of units sold is irrelevant to a flexible budget

B : Cost variance analysis is an integral part of preparing a flexible budget

C : Selling and administrative expenses are reported in the flexible budget

D : The flexible budget is prepared before the master budget to assist with planning

Answer: C

Question 2

Thompson Dental is deciding between two lease options for a new copier. They anticipate making 22,500 copies spread evenly over the course of the year. Which of the following options should they choose if they want to save the most money on an annual basis, and how much money will they save? Option 1: Monthly lease: $225, Included copies: 1,500/month, Additional copies: $0.15 per copy Option 2: Monthly lease: $250, Included copies: 1,800/month, Additional copies: $0.02 per copy

A : Option 1; $16 annual savings

B : Option 1; $300 annual savings

C : Option 2; $189 annual savings

D : Option 2; $357 annual savings

Answer: D

Question 3

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

A : Row 1

B : Row 2

C : Row 3

D : Row 4

Answer: D

Question 4

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?

A : Direct labor costs were assigned to work-in-process accounts

B : Customer service representatives responded to vendor complaints

C : Plant managers assisted in calculating a plant-wide overhead rate

D : The packaging department was moved closer to the shipping department

Answer: D

Question 5

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?

A : Direct labor costs were assigned to work-in-process accounts

B : Customer service representatives responded to vendor complaints

C : Plant managers assisted in calculating a plant-wide overhead rate

D : The packaging department was moved closer to the shipping department

Answer: D