BUS5111 Applied Managerial Accounting Unit 1 Graded Quiz — 25
Q&A Verified Answers 2025
Course:
BUS5111 Applied Managerial Accounting — University of the People (UoPeople)
Level:
MBA
Year:
2025/2026
Format:
Graded Quiz Solutions — 25 Q&A with Verified Answers
BUS5111 Unit 1 Graded Quiz — Introduction to Managerial
Accounting
25 Questions with Verified Answers | Score: 96/100
Question 1:
Which of the following is the most significant difference between managerial accounting and
financial accounting?
A) Managerial accounting is highly regulated by Generally Accepted Accounting Principles
(GAAP), while financial accounting is not.
B) Managerial accounting emphasizes the future and decision-making, while financial accounting
primarily summarizes past financial transactions.
C) Managerial accounting focuses heavily on the company as a whole, whereas financial
accounting focuses on segment-level reporting.
D) Managerial accounting requires an independent audit by a Certified Public Accountant,
whereas financial accounting reports are generated solely for internal use.
Answer: B
Explanation:
Managerial accounting is designed to help internal managers plan and control operations, so its
orientation is heavily focused on future estimates, budgets, and decision-making. In contrast,
financial accounting is historically focused, summarizing past transactions to report to external
, stakeholders. Managerial accounting is not bound by GAAP and does not require independent
audits.
Question 2:
A company manufactures high-end office chairs. Which of the following costs would most likely
be classified as a direct material cost?
A) The cost of glue used to assemble the chair frames.
B) The wages paid to the assembly line workers who build the chairs.
C) The cost of the leather used to upholster the chairs.
D) The salary of the production supervisor overseeing the chair assembly line.
Answer: C
Explanation:
Direct materials are raw materials that become an integral part of the finished product and whose
costs can be conveniently and economically traced to it, such as the leather upholstery. Glue is
typically an indirect material (part of manufacturing overhead) because tracing exactly how much
glue goes into each chair is not cost-effective. Assembly worker wages are direct labor, and the
supervisor's salary is indirect labor.
Question 3:
A corporate executive is considering replacing an old, inefficient manufacturing machine with a
newer, faster model. The original purchase price of the old machine was $150,000 five years ago.
How should the $150,000 original purchase price be classified in the context of this replacement
decision?
A) As a sunk cost.
B) As an opportunity cost.
C) As a differential cost.
D) As a period cost.
Answer: A
Explanation:
The original purchase price of the old machine is a sunk cost because it has already been incurred
in the past and cannot be changed by any present or future decision. Sunk costs should be
ignored in decision-making. Opportunity costs represent foregone benefits, while differential costs
are future costs that differ between alternatives.
Q&A Verified Answers 2025
Course:
BUS5111 Applied Managerial Accounting — University of the People (UoPeople)
Level:
MBA
Year:
2025/2026
Format:
Graded Quiz Solutions — 25 Q&A with Verified Answers
BUS5111 Unit 1 Graded Quiz — Introduction to Managerial
Accounting
25 Questions with Verified Answers | Score: 96/100
Question 1:
Which of the following is the most significant difference between managerial accounting and
financial accounting?
A) Managerial accounting is highly regulated by Generally Accepted Accounting Principles
(GAAP), while financial accounting is not.
B) Managerial accounting emphasizes the future and decision-making, while financial accounting
primarily summarizes past financial transactions.
C) Managerial accounting focuses heavily on the company as a whole, whereas financial
accounting focuses on segment-level reporting.
D) Managerial accounting requires an independent audit by a Certified Public Accountant,
whereas financial accounting reports are generated solely for internal use.
Answer: B
Explanation:
Managerial accounting is designed to help internal managers plan and control operations, so its
orientation is heavily focused on future estimates, budgets, and decision-making. In contrast,
financial accounting is historically focused, summarizing past transactions to report to external
, stakeholders. Managerial accounting is not bound by GAAP and does not require independent
audits.
Question 2:
A company manufactures high-end office chairs. Which of the following costs would most likely
be classified as a direct material cost?
A) The cost of glue used to assemble the chair frames.
B) The wages paid to the assembly line workers who build the chairs.
C) The cost of the leather used to upholster the chairs.
D) The salary of the production supervisor overseeing the chair assembly line.
Answer: C
Explanation:
Direct materials are raw materials that become an integral part of the finished product and whose
costs can be conveniently and economically traced to it, such as the leather upholstery. Glue is
typically an indirect material (part of manufacturing overhead) because tracing exactly how much
glue goes into each chair is not cost-effective. Assembly worker wages are direct labor, and the
supervisor's salary is indirect labor.
Question 3:
A corporate executive is considering replacing an old, inefficient manufacturing machine with a
newer, faster model. The original purchase price of the old machine was $150,000 five years ago.
How should the $150,000 original purchase price be classified in the context of this replacement
decision?
A) As a sunk cost.
B) As an opportunity cost.
C) As a differential cost.
D) As a period cost.
Answer: A
Explanation:
The original purchase price of the old machine is a sunk cost because it has already been incurred
in the past and cannot be changed by any present or future decision. Sunk costs should be
ignored in decision-making. Opportunity costs represent foregone benefits, while differential costs
are future costs that differ between alternatives.
