Business Administration
Midterm Exam
Course Introduction
Business Administration is an interdisciplinary course designed to provide students with a comprehensive understanding of the principles, practices, and functions of modern management and organizational operations. It covers key topics such as management theory, organizational behavior, marketing, finance, human resources, and strategic planning. By blending theoretical concepts with real-world applications, this course equips students with the analytical, problem-solving, and decision-making skills necessary to succeed in diverse business environments. Students will also develop leadership capabilities and learn how to effectively manage teams, resources, and projects within various organizational structures.
Recommended Textbook
Managerial Accounting 3rd Canadian Edition by Karen W. Braun
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12 Chapters
3096 Verified Questions
3096 Flashcards
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Page 2
Chapter 1: Introduction to Managerial Accounting
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201 Verified Questions
201 Flashcards
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Sample Questions
Q1) Budgets are the quantitative expression of management's plans.
A)True
B)False
Answer: True
Q2) Which reflects a philosophy of providing customers with superior products and services?
A) ERP
B) XBRL
C) TQM
D) IFRS
Answer: C
Q3) Inspection of incoming raw materials and production loss caused by downtime are examples of prevention costs.
A)True
B)False
Answer: False
Q4) Lean production cuts the throughput time of a manufacturing concern.
A)True
B)False
Answer: True
Page 3
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Chapter 2: Building Blocks of Managerial Accounting
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265 Verified Questions
265 Flashcards
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Sample Questions
Q1) Inventoriable product costs for a manufactured product include
A) marketing and research and development costs.
B) the costs of direct materials, direct labour and manufacturing overhead.
C) the costs of direct materials and direct labour only.
D) sales commissions on selling the product.
Answer: B
Q2) Period costs are
A) always considered part of the inventory.
B) always recorded as an expense.
C) expensed only when the inventory is sold.
D) the same as indirect costs.
Answer: B
Q3) Sanjay Company's average fixed costs per unit will be
A) $19.00 per unit.
B) $5.00 per unit.
C) $14.00 per unit.
D) $15.00 per unit.
Answer: C
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4
Chapter 3: Cost Behaviour
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374 Flashcards
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Sample Questions
Q1) If $10,000 of the costs are fixed, and the plant manager uses the average cost per unit to predict total costs, his forecast for 2,200 birdhouses will be
A) $92,000.
B) $40,000.
C) $44,000.
D) $88,000.
Answer: D
Q2) What is the estimate of Monroe's labour cost when 200 machine hours are used?
A) $1,840.00
B) $1,997.50
C) $2,280.00
D) $3,680.00
Answer: D
Q3) Regression analysis uses all data points, not just the highest and lowest volume data points.
A)True
B)False
Answer: True
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5
Chapter 4: Cost-Volume-Profit Analysis
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272 Verified Questions
272 Flashcards
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Sample Questions
Q1) What is Ava's Fruit Cups monthly margin of safety in dollars if the business achieves its operating income goal?
A) $1,750
B) $6,525
C) $7,750
D) $11,070
Q2) The break-even point may be defined as the number of units a company must sell to do which of the following?
A) Generate a zero profit
B) Generate a net loss
C) Earn more net income than the previous accounting period
D) Generate a net income
Q3) Operating leverage refers to the relative amount of fixed and variable costs that make up total costs for a company.
A)True
B)False
Q4) Sales mix of products does not affect CVP analysis.
A)True
B)False
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Chapter 5: Job Costing
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353 Flashcards
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Sample Questions
Q1) By how much was manufacturing overhead overallocated or underallocated for the year if Hilltop Manufacturing Ltd. uses a predetermined manufacturing overhead rate based on machine hours?
A) $28,500 underallocated
B) $28,500 overallocated
C) $18,750 underallocated
D) $18,750 overallocated
Q2) An interior designer spends 35 hours working with client #130 during May. Her basic annual salary is $61,440, while her annual salary plus benefits totals $80,640 per year. She typically works 40 hours a week for 48 weeks each year. What is the hourly cost to the firm that employs her?
A) $32
B) $1,470
C) $42
D) $39
Q3) Manufacturing overhead is underallocated if the amount
A) estimated for the period is greater than the actual amount incurred.
B) estimated for the period is less than the actual amount incurred.
C) allocated during the period is greater than the actual amount incurred.
D) allocated during the period is less than the actual amount incurred.
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Chapter 6: Process Costing
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288 Verified Questions
288 Flashcards
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Sample Questions
Q1) At Brooks Corporation the total cost of units in ending WIP inventory-Shaping would be closest to
A) $38,730.
B) $110,433.
C) $153,779.
D) $202,460.
Q2) Assume that 6,000 units were in beginning WIP inventory, 36,000 were started, 32,000 were completed, and 10,000 were in ending WIP inventory. Direct materials are added at the beginning of the process. What are the total equivalent units for direct materials?
A) 38,000
B) 36,000
C) 46,000
D) 42,000
Q3) Direct materials are usually added evenly throughout the production process.
A)True
B)False
Q4) Indirect labour would be a component of conversion costs.
A)True
B)False
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Chapter 7: Activity Based Costing
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Sample Questions
Q1) The four categories of activity costs in cost hierarchy are determined by the underlying factor that drives its costs.
A)True
B)False
Q2) When calculating a departmental overhead rate, the numerator should be the
A) total estimated departmental overhead cost pool.
B) total estimated amount of the departmental allocation base.
C) total estimated amount of manufacturing overhead for the factory.
D) actual quantity of the departmental allocation base used by the job.
Q3) Inspection is considered a value-added activity.
A)True
B)False
Q4) Which of the following statements does NOT describe an ABC system?
A) ABC systems can create more accurate product costs.
B) ABC systems may only be used by service companies.
C) ABC systems are more complex and costly than traditional costing systems.
D) ABC systems are used in both manufacturing and non manufacturing companies.
Q5) The storage of raw materials is considered a non-value-added activity.
A)True
B)False
Page 9
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Chapter 8: Short-Term Business Decisions
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271 Flashcards
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Sample Questions
Q1) Companies often consider outsourcing so they can focus on their core competencies.
A)True
B)False
Q2) When making any sort of decision, managers should consider A) only fixed costs.
B) sunk costs.
C) revenues that differ among alternatives.
D) only variable costs.
Q3) Green Valley golf course is planning for the coming season. Investors would like to earn a 14% return on the company's $45 million of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $18,000,000 for the golfing season. About 400,000 golfers are expected each year. Variable costs are about $8 per golfer. The Green Valley golf course has a favourable reputation in the area and therefore, has some control over the price of a round of golf. Using a cost-plus approach, what price should Green Valley charge for a round of golf?
Q4) Managers only need to consider variable costs when setting prices.
A)True
B)False
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Chapter 9: The Master Budget and Responsibility Accounting
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228 Verified Questions
228 Flashcards
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Sample Questions
Q1) The operating budgets project the collection and payment of cash, as well as forecast the company's budgeted balance sheet.
A)True
B)False
Q2) How much cash will be disbursed in total in March?
A) $88,400
B) $68,400
C) $96,400
D) $91,600
Q3) List and describe three reasons why a company and its managers could benefit from the use of budgeting.
Q4) Which description listed below best defines "financial budget"?
A) A budget that projects cash inflows and outflows and the end of period budgeted balance sheet
B) A company's plan for purchases of property, plant and equipment, and other long-term assets
C) A budget that shows projected sales, purchases and operating expenses
D) A system for evaluating the performance of each responsibility centre and its manager
11
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Chapter 10: Flexible Budgets and Standard Costs
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260 Verified Questions
260 Flashcards
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Sample Questions
Q1) What is the rate variance of the direct manufacturing labour, and the direct marketing labour, respectively?
A) $4,750 favourable; $12,500 favourable
B) $8,000 favourable; $10,000 favourable
C) $3,500 unfavourable; $6,750 unfavourable
D) $4,750 unfavourable; $12,500 unfavourable
Q2) McClean supplies restaurants with many sanitation supplies (such as paper towels and soaps). Assume that the manufacturing plant processing the sanitation supplies anticipated incurring a total of $4,928,000 of manufacturing overhead during the year. Of this amount, $2,112,000 is fixed. Manufacturing overhead is allocated based on machine hours. The plant anticipates running the machines 440,000 hours next year.
Required:
1. Compute the standard variable overhead rate.
2. Compute the fixed overhead rate.
3. Compute the standard total overhead rate.
Q3) In a flexible budget, total fixed costs change as production volume changes.
A)True
B)False
Q4) Identify five benefits of standard costs.
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Chapter 11: Performance Evaluation and the Balanced Scorecard
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195 Flashcards
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Sample Questions
Q1) The difference between amounts in the static budget and the flexible budget for a revenue centre is caused by which of the following?
A) The cost of sales
B) The selling price per unit
C) The number of units sold differs from planned sales levels
D) Both the selling price and the number of units sold
Q2) Which of the following financial performance measures can be used to compare potential projects of different sizes?
A) EVA
B) Residual income
C) ROI
D) Operating income
Q3) The difference between actual results and budgeted amounts is called a variance.
A)True
B)False
Q4) Companies evaluate investment centres the way they evaluate profit centres.
A)True
B)False
Q5) List and describe five reasons why a company might choose to decentralize.
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Chapter 12: Capital Investment Decisions and the Time
Value of Money
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205 Verified Questions
205 Flashcards
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Sample Questions
Q1) Which of the following capital budgeting models is generally the simplest to compute?
A) Payback
B) Net present value
C) Internal rate of return
D) Accounting rate of return
Q2) The payback period for the Kentucky proposal is closest to
A) 4.5 years.
B) 4.8 years.
C) 6.0 years.
D) 7.0 years.
Q3) Assuming an interest rate of 10%, if you invest a lump sum of $4,000 now, the balance of your investment in 7 years will be closest to
A) $7,796.
B) $10,376.
C) $19,472.
D) $28,000.
Q4) Self-scan check-out machines are an example of capital assets.
A)True B)False
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