Business Decision Making Practice
Exam
Course Introduction
Business Decision Making explores the analytical frameworks, techniques, and real-world scenarios that inform complex decision processes within organizations. The course covers quantitative and qualitative approaches to identifying problems, evaluating alternatives, and implementing effective solutions in a business context. Students will examine the role of data analysis, risk assessment, stakeholder perspectives, and ethical considerations in making strategic choices. Through case studies, simulations, and project work, learners will develop critical thinking and practical skills to support sound decision making in various business environments.
Recommended Textbook
Managerial Accounting An Introduction to Concepts Methods and Uses 11th Edition by Michael W.
Available Study Resources on Quizplus
13 Chapters
1638 Verified Questions
1638 Flashcards
Source URL: https://quizplus.com/study-set/3918 Page 2
Chapter 1: Fundamental Concepts
Available Study Resources on Quizplus for this Chatper
114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/78147
Sample Questions
Q1) Which of the following are Canadian designations that are similar to the CPA designation in the United States?
I.CA
II.CMA
III.CGA
IV.CASB
A)I & II
B)I & III
C)III & IV
D)I & IV
Answer: B
Q2) The nursing station on the fourth floor of Columbia Hospital for Women is responsible for the care of patients who have just given birth.The costs of drugs administered by the nurses to patients would be classified as A)direct costs.
B)indirect costs.
C)overhead costs.
D)period costs.
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Measuring Product Costs
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/78142
Sample Questions
Q1) Susan Johnson Products Company
The Susan Johnson Products Company uses a job costing system.For Year 4,the firm estimated total overhead to be $40,000 and the number of direct labor hours to be 10,000.
Refer to the Susan Johnson Products Company.Job 247 is a special order of 100 special-design tables.The work-in-process inventory account for this job shows raw material costs of $4,600 and direct labor costs of $7,600.The firm has charged 1,200 direct labor hours to the job.What is the total cost of Job 247?
Answer: 11ea906f_4ca0_60fa_aec7_f78832bccad6_TB2144_00_TB2144_00
Q2) Which of the following statements is true if a company overstates the ending balance of inventory?
A)Cost of Goods Sold and profits will be overstated and Gross Margin will be understated.
B)Cost of Goods Sold,Gross Margin,and profits will be understated.
C)Cost of Goods Sold,Gross Margin,and profits will be overstated.
D)Cost of Goods Sold will be understated,Gross Margin and profits will be overstated. Answer: D
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Activity-Based Management
Available Study Resources on Quizplus for this Chatper
139 Verified Questions
139 Flashcards
Source URL: https://quizplus.com/quiz/78141
Sample Questions
Q1) Activity-based costing assigns more costs to items produced in __________ than traditional methods do.
A)small runs
B)medium runs
C)large runs
D)extra large runs
Answer: A
Q2) When does activity-based costing have the best results?
A)When it is used as a quick,one-time fix.
B)When the company has a short-term time horizon.
C)When it is used as a process that requires patience and participation.
D)When it is used as a means to motivate employees to work better.
Answer: C
Q3) A major cause of difficulty in implementing activity-based costing is the failure to get buy-in of which of the following?
A)engineering people in the organization
B)production people in the organization
C)marketing people in the organization
D)influential people in the organization
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Strategic Management of Costs,quality,and Time
Available Study Resources on Quizplus for this Chatper
146 Verified Questions
146 Flashcards
Source URL: https://quizplus.com/quiz/78140
Sample Questions
Q1) A current theme in business today is that "quality is free." Which of the following statements best exemplifies that theme?
A)Cost-benefit analyses is the primary focus in improving quality.
B)Quality is always free in the short-run.
C)Short-run benefits will always outweigh the costs of improving quality.
D)If quality is built into the product,the resulting benefits far outweigh the costs of improving quality.
Q2) Which critical success factor relates to the expectations the customer has about all aspects,both tangible and intangible,of the product's purchase and use?
A)Service
B)Quality
C)Quantity
D)Cost
Q3) Compare the costs of quality control to the costs of failing to control quality.
Q4) Delivery cycle time is also known as:
A)just in time
B)break-even time
C)customer response time
D)external failure cost
6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Cost Drivers and Cost Behavior
Available Study Resources on Quizplus for this Chatper
114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/78139
Sample Questions
Q1) Which of the following is a weakness of the account analysis method of cost estimation?
A)The method is not particularly useful when the physical relation between inputs and outputs is indirect.
B)The method is subjective.
C)The method requires that several relatively strict assumptions be satisfied.
D)The method is based on studies of what future costs should be rather than what past costs have been.
Q2) Total costs that vary with activity levels in the short run are known as:
A)fixed costs.
B)variable costs.
C)sunk costs.
D)opportunity costs.
Q3) Which of the following represents costs that have both a fixed and variable component?
A)curvilinear variable.
B)curvilinear fixed.
C)semi-variable.
D)semi-fixed.
Q4) Briefly explain how to use historical data to estimate costs.
7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Financial Modeling for Short-Term Decision
Making
Available Study Resources on Quizplus for this Chatper
120 Verified Questions
120 Flashcards
Source URL: https://quizplus.com/quiz/78138
Sample Questions
Q1) Multiple products make using financial models more complex.To deal with this,managers can do which of the following?
A)assume that all products have the same contribution margin.
B)use contribution margin as a measure of volume.
C)assume a weighted-average sales volume.
D)All of the answers are correct.
Q2) How might a company with a negative contribution margin reach the break-even point?
A)Increase sales volume.
B)Decrease sales volume.
C)Decrease fixed costs.
D)Decrease variable costs.
Q3) What effect would an increase in fixed costs have on the break-even point and the contribution margin?
Break-even Point Contribution Margin
A)Increase Increase
B)Increase Decrease
C)Decrease Increase
D)Decrease Decrease
Q4) How can financial modeling be used for profit planning purposes?
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Differential Cost Analysis for Operating Decisions
Available Study Resources on Quizplus for this Chatper
186 Verified Questions
186 Flashcards
Source URL: https://quizplus.com/quiz/78137
Sample Questions
Q1) The economic order quantity model is used to
A)set the target cost.
B)set the target profit.
C)set the target sales price.
D)derive the optimal number of orders or production runs.
Q2) Which of the following is a mathematical tool for solving such multiply-constrained decision problems?
A)curvi-linear programming.
B)random number generators.
C)mini-max decision-making.
D)linear programming.
Q3) Linear programming
A)finds the product mix that will maximize profits given the constraints.
B)provides opportunity costs of constraints.
C)allows for sensitivity analysis.
D)All of the answers are correct.
Q4) Explain the use of differential analysis to determine when to add or drop parts of operations.
Q5) What is the theory of constraints and how is it applied?
Q6) Identify the factors of inventory management decisions. Page 9
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 8: Capital Expenditure Decisions
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/78136
Sample Questions
Q1) Which statement is true concerning depreciation?
A)Depreciation affects the tax cash flow because it is a deductible expense that affects taxable income.
B)Depreciation should be considered in the cash flow analysis.
C)Depreciation is affected by income tax laws which specify the allowable methods. D)all of the above.
Q2) Which of the following would not be considered a periodic cash flow?
A)Receipts from sales.
B)Expenditures for heat,light,and electricity.
C)Income taxes paid on taxable income.
D)Initial lump-sum investment in a project.
Q3) Explain the application of the internal rate of return method of assessing investment alternatives.
Q4) Use this information to answer the following questions: An investment of $20,000 today will yield $8,000 a year at the end of the next three years. Refer to the above information.Will the project be accepted at a cost of capital of 10 percent?
Q5) How does depreciation affect investment decisions?
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 9: Profit Planning and Budgeting
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/78135
Sample Questions
Q1) What is often the most difficult aspect of budgeting?
A)forecasting sales because it involves considerable subjectivity.
B)forecasting sales because it involves considerable objectivity.
C)forecasting production requirements because it involves considerable subjectivity.
D)forecasting production requirements because it involves considerable objectivity.
Q2) Who are responsible for (1)costs in cost centers, (2)revenues in revenue centers, (3)both costs and revenues in profit centers,and (4)revenues,costs,and assets in an investment center?
A)Shareholders.
B)Employees.
C)Managers.
D)Vendors.
Q3) Which of the following would be a responsibility of a manager in a cost centers?
A)costs only.
B)revenues only.
C)both costs and revenues.
D)revenues,costs,and assets.
Q4) How is the budget used for performance evaluation?
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 10: Profit and Cost Center Performance Evaluation
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/78146
Sample Questions
Q1) What is the difference between price and efficiency variances?
Q2) The production price (spending)variance is the difference between which of the following two costs?
A)Budgeted and applied costs.
B)Actual and budgeted costs.
C)Applied and actual costs.
D)Variable and budgeted costs.
Q3) When multiple inputs are used to produce the output,the efficiency variance can be broken down into which of the following?
A)mix and match variances.
B)mix and yield variances.
C)profit and yield variances.
D)benefit and match variances.
Q4) Activity-based costing is commonly used with standard costing.Using activity-based costing,a company has
A)a single cost driver
B)multiple cost drivers.
C)no cost drivers.
D)the same cost drivers as standard costing.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 11: Investment Center Performance Evaluation
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/78145
Sample Questions
Q1) A shortcoming of return on investment (ROI)is that it may not lead managers to accept good investment opportunities if
A)ROI of the investment is higher than the present ROI of the division.
B)the ROI of the investment is the same as the present ROI of the division.
C)the ROI of the investment is lower than the present ROI of the division.
D)None of the answers is correct.
Q2) Transfer prices are the prices charged
A)for distributing goods from one warehouse to another.
B)for the goods produced by one division to another division that needs those goods.
C)when delivering goods to the customer.
D)when transferring goods to international divisions.
Q3) What transfer pricing basis is considered a good estimation of differential cost plus opportunity cost?
A)Market price-based transfer pricing
B)Variable cost-based transfer pricing
C)Fixed price-based transfer pricing
D)Fixed cost-based transfer pricing
Q4) Identify types of costs to be considered in measuring divisional operating costs.
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 12: Incentive Issues
Available Study Resources on Quizplus for this Chatper
123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/78144
Sample Questions
Q1) The balanced scorecard is a causal model of lead and lag indicators of performance and is based on the financial perspective and the non-financial perspective(s)of
A)learning and growth.
B)internal business and production process.
C)customer.
D)All of the answers are correct.
Q2) Which of the following is an advantage for companies to award managerial performance based on a formula-based approach?
A)Managers know precisely what is expected of them.
B)Managers know what reward they will get if they achieve expectations.
C)Managers who do not fully trust their superiors tend to prefer this approach.
D)All of the answers are correct.
Q3) How does fraudulent financial reporting differ from simply making an error in financial reporting?
Q4) Which of the following would be considered an intrinsic reward?
A)the satisfaction from studying hard.
B)providing help to someone in need.
C)doing a good job.
D)All of the answers are correct.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 13: Allocating Costs to Responsibility Centers
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/78143
Sample Questions
Q1) Evans Company processes a chemical,Exacto 7,through a pressure treatment operation.The complete process has two outputs,X and Y.The January costs to process Exacto 7 are $50,000 for materials and $100,000 for conversion costs.This processing results in two outputs,X and Y,that sell for a total of $250,000.The sales revenue from X amounts to $200,000 of the total.
Required:
Using the net realizable method,assign costs to X and Y for January. Total joint costs are $150,000 (based on the $50,000 materials plus $100,000 conversion).These costs are allocated as follows:
Q2) What is the third,or final,step in allocating service department costs to production departments?
A)Assign overhead costs that are directly attributable to a service or production department.
B)Allocate other overhead costs based on appropriate cost drivers.
C)Allocate service department costs to production departments.
D)None of the answers is correct.
Q3) Why are service department costs allocated to producing departments?
Q4) Describe the factors that should be considered in allocating service department costs.
To view all questions and flashcards with answers, click on the resource link above. Page 16