Course Introduction
Business Decision Making
Chapter Exam Questions
Business Decision Making explores the principles, models, and methodologies used to effectively solve complex business problems and make data-driven decisions. Students will learn to apply quantitative and qualitative techniques, such as decision trees, forecasting, risk analysis, optimization, and scenario planning, within real-world business contexts. The course emphasizes the synthesis of information from diverse sources, ethical considerations, and the impact of uncertainty on outcomes. Through case studies and practical exercises, students develop critical thinking, analytical, and communication skills essential for guiding organizational strategy and operations.
Recommended Textbook
Managerial Accounting v. 2.1 by Kurt Heisinger and Joe Hoyle
Available Study Resources on Quizplus
13 Chapters
876 Verified Questions
876 Flashcards
Source URL: https://quizplus.com/study-set/3576 Page 2
Chapter 1: What Is Managerial Accounting
Available Study Resources on Quizplus for this Chatper
75 Verified Questions
75 Flashcards
Source URL: https://quizplus.com/quiz/71029
Sample Questions
Q1) The three categories of product costs include all of the following except:
A)Manufacturing overhead.
B)Direct materials.
C)Indirect labor.
D)Direct labor.
E)None of the above.
Answer: C
Q2) According to the IMA Statement of Ethical Professional Practice,competence means that each member has a responsibility for all the following except:
A)refrain from using confidential information for unethical or illegal advantage.
B)maintaining an appropriate level of professional expertise.
C)recognizing and communicating professional limitations.
D)performing professional duties in accordance with relevant laws,regulations and technical standards.
E)None of the above.
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: How Is Job Costing Used to Track Production Costs
Available Study Resources on Quizplus for this Chatper
44 Verified Questions
44 Flashcards
Source URL: https://quizplus.com/quiz/71028
Sample Questions
Q1) The law firm,Keen and Sholer,assigns overhead to clients based on direct labor hours using normal costing.During June,they compiled the following information regarding hours worked and costs:
\[\begin{array} { l l }
\text { Actual direct labor hours } & 900 \text { hours } \\ \text { Actual overhead costs } & \$ 7,200 \\
\text { Estimated direct labor hours } & 1,000 \text { hours } \\ \text { Estimated overhead costs } & \$ 9,000 \end{array}\]
The amount of applied overhead for June is:
A)$8,100
B)$7,200
C)$6,480
D)$9,000
E)None of the answer choices is correct. Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: How Does an Organization Use Activity-Based
Costing to Allocate Overhead Costs
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/71027
Sample Questions
Q1) Facility-level activities are activities required to develop,produce and sell specific types of products.
A)True
B)False
Answer: False
Q2) The plantwide approach to allocating overhead is typically the simplest and least expensive approach.
A)True
B)False
Answer: True
Q3) Appraisal costs are the same as detection costs.
A)True
B)False
Answer: True
Q4) The choice of an allocation method for overhead depends on how managers decide to group costs into cost pools.
A)True
B)False
Answer: True
Page 5
To view all questions and flashcards with answers, click on the resource link above.
Chapter 4: How Is Process Costing Used to Track
Production Costs
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/71026
Sample Questions
Q1) Refer to Exhibit 4-1.What is the total cost of units transferred out?
A)$1,221,580
B)$1,150,420
C)$1,079,260
D)$1,082,900
E)None of the answer choices is correct.
Q2) In a process costing system,the department where production begins will never have transferred-in costs from another department.
A)True
B)False
Q3) Refer to Exhibit 4-2.What is the cost per gallon for the mixing process?
A)$5.88
B)$0.50
C)$0.48
D)$0.54
E)None of the answer choices is correct.
Q4) A process costing system is used by companies that produce similar or identical units of product.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: How Do Organizations Identify Cost Behavior
Patterns
Available Study Resources on Quizplus for this Chatper
68 Verified Questions
68 Flashcards
Source URL: https://quizplus.com/quiz/71025
Sample Questions
Q1) All of the following are steps of the high-low method except:
A)stating the results in equation form Y = f + vX.
B)calculating the fixed cost per unit.
C)calculating the variable cost per unit.
D)identifying the high and low activity data points.
E)None of the answer choices is correct.
Q2) Refer to Exhibit 5-5.What are Tyler's total costs each month?
A)$3,000
B)$9,250
C)$6,250
D)$7,250
E)None of the answer choices is correct.
Q3) Some companies choose to use the scattergraph method to estimate costs because this method considers:
A)only the average levels of activity.
B)only the highest levels of activity.
C)only the lowest levels of activity.
D)all data points.
E)None of the answer choices is correct.
Page 7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: How Is Cost-Volume-Profit Analysis Used for Decision Making
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/71024
Sample Questions
Q1) Huston Company has annual fixed costs totaling $3,000,000 and variable costs of $450 per unit.Each unit of product is sold for $850.Assume a tax rate of 30 percent.How many units must be sold to earn an annual profit of $210,000 after taxes?
A)8,250
B)4,586
C)9,250
D)8,025
E)None of the answer choices is correct.
Q2) Refer to Exhibit 6-5.What is the operating profit?
A)$90,000
B)$570,000
C)$270,000
D)$255,000
E)None of the answer choices is correct.
Q3) The only difference between absorption costing and variable costing is the treatment of fixed manufacturing overhead costs.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: How Are Relevant Revenues and Costs Used to
Make Decisions
Available Study Resources on Quizplus for this Chatper
76 Verified Questions
76 Flashcards
Source URL: https://quizplus.com/quiz/71023
Sample Questions
Q1) Production capacity is the only consideration when evaluating special orders. A)True
B)False
Q2) The following data is for Archery Unlimited,a maker of bows used by archery enthusiasts.All fixed costs are unavoidable regardless of the products offered,and Archery sells all the products it produces each year. \(\begin{array}{lrrr}
&\text { Beginner}&\text { Intermediate } & \text { Advanced }\\
\text { Unit Selling price } & \$ 40 & \$ 200 & \$ 400 \\
\text { Unit variable cost } & \$ 35 & \$ 80 & \$ 120 \\
\text { Total fixed cost } & \$ 60,000 & \$ 200,000 & \$ 245,000 \\
\text { Annual volume } & 7,000 & 4,000 & 3,000 \end{array}\)
(1)Perform differential analysis to determine what will happen to total profits if the company drops the Beginner product.
(2)Based on the analysis,what would be your recommendation to management regarding dropping of the Beginner product?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: How Is Capital Budgeting Used to Make Decisions
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/71022
Sample Questions
Q1) Refer to Exhibit 8-1.If taxes are ignored and the required rate of return is 10%,what is the project's net present value (rounded to the nearest dollar)?
A)$1,262,910
B)$1,020,000
C)$329,226
D)$344,409
E)None of the answer choices is correct.
Q2) If a project has an internal rate of return of 25% and a negative net present value,which of the following statements is true regarding the discount rate used for the net present value computation?
A)The required rate of return must have been 0%.
B)The required rate of return must have been equal to 25%.
C)The required rate of return must have been less than 25%.
D)The required rate of return must have been greater than 25%
E)None of the answer choices is correct.
Q3) Capital budgeting decisions focus on cash flows for projects requiring more than one year to complete.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: How Are Operating Budgets Created
Available Study Resources on Quizplus for this Chatper
68 Verified Questions
68 Flashcards
Source URL: https://quizplus.com/quiz/71021
Sample Questions
Q1) Which of the following best describes a production budget?
A)A budget that is based on sales projections plus an estimate of desired ending finished goods inventory less beginning finished goods inventory..
B)An estimate of all production costs,other than direct materials,necessary to achieve a desired level of production.
C)A short-term budget that focuses on the daily operations of the organization.
D)A series of budget schedules outlining the organization's plans for the upcoming period
E)None of the answer choices is correct.
Q2) Victoria Company's policy is to keep 20% of the next month's sales in ending inventory.If Victoria meets this policy for its ending inventory in May,and sales are expected to be 14,000 units in June and 20,000 units in July,how many units need to be produced in June?
A)20,800 units
B)12,800 units
C)18 000 units
D)15,200 units
E)None of the answer choices is correct.
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: How Do Managers Evaluate Performance Using Cost Variance Analysis
Available Study Resources on Quizplus for this Chatper
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/71020
Sample Questions
Q1) Refer to Exhibit 10-5.What is the variable overhead efficiency variance for the indirect labor activity?
A)$16,000 favorable
B)$16,000 unfavorable
C)$12,000 favorable
D)$12,000 unfavorable
E)None of the answer choices is correct.
Q2) Refer to Exhibit 10-5.What is the variable overhead efficiency variance for the purchase order activity?
A)$2,000 favorable
B)$2,000 unfavorable
C)$8,000 favorable
D)$8,000 unfavorable
E)None of the answer choices is correct.
Q3) Management by exception is a term used to describe managers who look at all variances,regardless of the amount.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: How Do Managers Evaluate Performance in
Decentralized Organizations
Available Study Resources on Quizplus for this Chatper
63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/71019
Sample
Questions
Q1) When using the net book value to calculate return on investment (ROI),division managers controlling newer assets with little accumulated depreciation have an advantage over division managers controlling older assets with more accumulated depreciation.
A)True
B)False
Q2) Petra Company has the following information available for one of its divisions: \(\begin{array}{lr}
\text { Average operating assets } & \$ 2,500,000 \\
\text { Sales } & \$ 4,000,000 \\
\text { Return on investment (ROI) } & 40 \% \end{array}\)
If Petra's cost of capital is 25%,what is the division's residual income?
A)$1,500,000
B)$1,000,000
C)$375,000
D)$975,000
E)None of the answer choices is correct.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: How Is the Statement of Cash Flows Prepared and Used
Available Study Resources on Quizplus for this Chatper
65 Verified Questions
65 Flashcards
Source URL: https://quizplus.com/quiz/71018
Sample Questions
Q1) Which of the following are the three major categories of activities included in the statement of cash flows?
A)Financing,investing and purchasing.
B)Operating,capital,and financing.
C)Operating,investing,and financing.
D)Investing,operating and capital.
E)None of the answer choices is correct.
Q2) The operating cash flow ratio is calculated as cash provided by operating activities divided by current liabilities.
A)True
B)False
Q3) The direct method of preparing a statement of cash flows results in the same cash provided by operating activities than the indirect method.
A)True
B)False
Q4) Factory equipment sold for cash would appear in the financing activities section of the statement of cash flows.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: How Do Managers Use Financial and
Nonfinancial Performance Measures
Available Study Resources on Quizplus for this Chatper
62 Verified Questions
62 Flashcards
Source URL: https://quizplus.com/quiz/71017
Sample Questions
Q1) All of the following account balances would typically be used to calculate a current ratio except:
A)sales.
B)accounts receivable.
C)accounts payable.
D)cash.
E)None of the answer choices is correct.
Q2) Refer to Exhibit 13-1.What is the gross margin ratio for 2017 (rounded to the nearest tenth of a percent)?
A)10.6
B)63.5%
C)27.3%
D)38.8 %
E)None of the answer choices is correct.
Q3) Refer to Exhibit 13-1.What is the market capitalization at the end of 2017?
A)$654,000
B)$324,000
C)$18,000
D)$930,000
E)None of the answer choices is correct.
To view all questions and flashcards with answers, click on the resource link above. Page 15