Pass BUS105 Exam Latest Practice Questions Updated on Nov 15, 2025
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NEW QUESTION # 11
Ladron Candies uses activity-based costing to allocate variable factory overhead costs. Which of the following statements best represents the excerpted activity data for indirect materials?
Indirect Materials:
- A. There is a $1,000 favorable spending variance
- B. There is a $500 favorable spending variance
- C. There is a $1,000 unfavorable efficiency variance
- D. There is a $500 unfavorable efficiency variance
Answer: B
NEW QUESTION # 12
Myer Inc. achieved their goal of reducing their employee turnover rate by 15%. Which of the following perspectives of their balanced scorecard is most likely to include this measure?
- A. Internal business process
- B. Learning and growth
- C. Customer satisfaction
- D. Financial performance
Answer: B
NEW QUESTION # 13
Which of the following might a capital budget decision consider?
- A. Minimum wage requirements
- B. Historical cash flows
- C. Customer satisfaction surveys
- D. Future cash inflows vs. future cash outflows
Answer: D
NEW QUESTION # 14
Strang Tax provides tax consulting services to its clients whom they charge on an hourly basis. They would like to use differential analysis to determine whether profits would change if they dropped certain clients. Which of the following items should be excluded from this analysis?
- A. Project management costs
- B. Wages payable
- C. Rent expenses
- D. Consulting fees
Answer: C
NEW QUESTION # 15
Which of the following activities would be included in the cash flows from the financing section of the statement of cash flows?
- A. Cash dividends paid to noncontrolling interests
- B. Purchase of property and equipment
- C. Increase in accounts receivable
- D. Cash receipts from customers
Answer: A
NEW QUESTION # 16
Using this data, what is the number of units that must be sold in order to achieve a desired after-tax profit of $100,000?
- A. 15,360 units
- B. 12,800 units
- C. 14,800 units
- D. 16,000 units
Answer: C
NEW QUESTION # 17
These tables pertain to the blending department of Martinez Corporation, a paint manufacturer, for the month of August.
Units accounted for in the mixing department:
Total costs to be accounted for in the mixing department:
What is the cost per equivalent unit for direct labor, and what is the cost of direct labor to be assigned to ending work in process inventory?
- A. $14 per equivalent unit; $7,000 direct labor cost assigned to ending WIP inventory
- B. $101 per equivalent unit; $85,850 direct labor cost assigned to ending WIP inventory
- C. $14 per equivalent unit; $8,400 direct labor cost assigned to ending WIP inventory
- D. $101 per equivalent unit; $60,600 direct labor cost assigned to ending WIP inventory
Answer: A
NEW QUESTION # 18
Bethel Bakery manufactures frosted sugar cookies. They maintain separate work-in-process accounts for their blending, cutting, baking, decorating, and packaging departments. Which costing method is Bethel Bakery most likely using?
- A. Job costing
- B. Departmental costing
- C. Process costing
- D. Activity-based costing
Answer: C
NEW QUESTION # 19
Which of the following employees of ABC Corporation is most likely to receive the report regarding the internal audit committee's control findings?
- A. Payroll clerk
- B. Managerial accountant
- C. Chief financial officer
- D. Plant manager
Answer: C
NEW QUESTION # 20
SJ Candles subscribes to a management theory known as management by exception. Which of the following best describes a situation where management by exception would be applied?
- A. Management is faced with an ethical issue regarding a decision about investing in long-term assets
- B. There are significant activities occurring outside of the relevant range which require additional analysis
- C. There is a $26,000 unfavorable labor rate variance that is 1% higher than their threshold for investigating variances
- D. Tax savings resulted in an unplanned 25% increase to net income in year 2
Answer: C
NEW QUESTION # 21
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. The packaging department was moved closer to the shipping department
- B. Customer service representatives responded to vendor complaints
- C. Direct labor costs were assigned to work-in-process accounts
- D. Plant managers assisted in calculating a plant-wide overhead rate
Answer: A
NEW QUESTION # 22
What would the salary of a manufacturing firm's HR Manager be classified as?
- A. Manufacturing Overhead
- B. General and Administrative Costs
- C. Direct Labor
- D. Indirect Labor
Answer: B
NEW QUESTION # 23
The accounting department for Aramai Inc. is preparing the cash flow statement for the current year. Using the select financial statement data below, what is Aramai's net income when converted to cash provided by operating activities, using the indirect method?
- A. $380,650
- B. $553,350
- C. $493,550
- D. $545,350
Answer: C
NEW QUESTION # 24
Which row correctly identifies the calculation to establish standard costs for direct materials, direct labor, and factory overhead?
- A. Row 2
- B. Row 3
- C. Row 4
- D. Row 1
Answer: C
NEW QUESTION # 25
What is the formula to calculate working capital?
- A. Total assets - Total liabilities
- B. Total assets - Current liabilities
- C. Current assets + Current liabilities
- D. Current assets - Current liabilities
Answer: D
NEW QUESTION # 26
Use the following relevant data to assign costs to units transferred out and units in ending WIP inventory. Total Units Accounted For:
Cost per Equivalent Unit:
What is the total cost of production?
- A. $1,800
- B. $4,500
- C. $9,000
- D. $3,325
Answer: B
NEW QUESTION # 27
Diamonds and More produced a new line of necklaces that sell for $350 each. Management requires a profit equal to 40 percent of the selling price. What is the target cost of this product?
- A. $140
- B. $175
- C. $210
- D. $350
Answer: C
NEW QUESTION # 28
Using this data, what is the contribution margin?
- A. $326,000
- B. $121,000
- C. $625,000
- D. $365,000
Answer: A
NEW QUESTION # 29
Cash collections and payments for purchases would be included in which of the following budgets as part of the overall master budget?
- A. Manufacturing overhead budget
- B. Direct materials purchases budget
- C. Budgeted income statement
- D. Cash budget
Answer: D
NEW QUESTION # 30
You are the financial accountant for Antioch Ski Resort. Managers have been promised end-of-year bonuses if profits for the year increase by 10%. At the end of the year, you determine that profits increased by only 8%, and the managers ask you to "fudge the numbers a bit" so they can still receive their bonuses. What should you do?
- A. Check whether the company has a policy on resolving ethical conflicts
- B. Consider inflating the profits for the year, since it is only a 2% difference
- C. Report the managers to the CEO
- D. Resign from the company
Answer: A
NEW QUESTION # 31
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