BSA 118 COMPLETE MOCK EXAMINATION | 100 REALISTIC EXAM QUESTIONS WITH VERIFIED ANSWERS & DETAILED EXPLANATIONS LATEST UPDATE A+ GRADED GUARANTEED.

BSA 118 COMPLETE MOCK EXAMINATION | 100
REALISTIC EXAM QUESTIONS WITH VERIFIED
ANSWERS & DETAILED EXPLANATIONS LATEST
UPDATE A+ GRADED GUARANTEED.


1. A cost that varies in total but remains constant per unit is classified as a:
a) Fixed cost
b) Variable cost
c) Mixed cost
d) Sunk cost
b) Variable cost
Rationale: Total variable costs change in direct proportion to activity level,
while variable cost per unit remains constant.
2. The Truth in Negotiations Act (TINA) applies to negotiated procurements
exceeding:
a) $1,000,000
b) $2,000,000
c) $3,000,000
d) $5,000,000
*b) $2,000,000**
*Rationale: The current TINA threshold is $2 million; certified cost or pricing
data must be submitted unless an exception applies.
3. A company produces 5,000 units with total fixed costs of $25,000 and total
variable costs of $75,000. The total cost per unit is:
a) $5
b) $15
c) $20
d) $25
*c) $20**

, *Rationale: Total cost = $25,000 + $75,000 = $100,000. Per unit cost =
$100,,000 = $20.
4. In cost accounting, a direct cost is one that:
a) Cannot be easily traced to a cost object
b) Is incurred for multiple objectives
c) Can be specifically identified with a particular cost object
d) Is always fixed in nature
c) Can be specifically identified with a particular cost object
Rationale: Direct costs, such as direct materials and direct labor, are
traceable to a specific product or contract.
5. The break-even point in units is calculated as:
a) Fixed costs divided by selling price per unit
b) Fixed costs divided by contribution margin per unit
c) Variable costs divided by contribution margin per unit
d) Total costs divided by selling price per unit
b) Fixed costs divided by contribution margin per unit
Rationale: Break-even units = Fixed costs / (Selling price per unit - Variable
cost per unit), where the denominator is contribution margin per unit.
6. Which of the following is a sunk cost?
a) The original purchase price of equipment that has no resale value
b) Direct material cost for a new order
c) Variable overhead for future production
d) Opportunity cost of an alternative project
a) The original purchase price of equipment that has no resale value
Rationale: Sunk costs are past expenditures that cannot be recovered and
should not affect future decisions.
7. In price analysis, the most preferred method of determining reasonableness
is:
a) Comparison to historical prices
b) Adequate price competition
c) Cost analysis

, d) Catalog prices
b) Adequate price competition
Rationale: FAR 15.404-1(b) establishes adequate price competition as the
primary method for determining price reasonableness.
8. A semi-variable cost contains:
a) Only fixed elements
b) Only variable elements
c) Both fixed and variable components
d) Neither fixed nor variable components
c) Both fixed and variable components
Rationale: Also called a mixed cost, it includes a fixed base amount plus a
variable portion that changes with activity.
9. If the selling price is $80 per unit, variable cost is $50 per unit, and fixed
costs are $60,000, the break-even point in units is:
a) 1,200
b) 1,500
c) 2,000
d) 3,000
**c) 2,000**
*Rationale: Break-even units = $60,000 / ($80 - $50) = $60,000 / $30 =
2,000 units.*
10.Under absorption costing, fixed manufacturing overhead is:
a) Expensed as a period cost
b) Treated as a product cost and included in inventory
c) Charged entirely to the income statement
d) Excluded from unit cost
b) Treated as a product cost and included in inventory
Rationale: Absorption costing includes all manufacturing costs (direct
materials, direct labor, variable and fixed overhead) in product cost.
11.A supplier offers terms of 2/10, net 30 on a $500 invoice. If the buyer pays
on day 30, the extra cost for not taking the discount is: