Bu247 Final Exam Questions With Correct Answers

BU247 FINAL EXAM QUESTIONS WITH
CORRECT ANSWERS
WhichOofOtheOfollowingOisOtrueOaboutOstrategy?

1)OStrategyOisOaboutOdecidingOwhatOtoOdo.

2)OStrategyOisOaboutOdecidingOwhatOnotOtoOdo.

3)OStrategyOisOaboutOfindingOtheObestOfitObetweenOanOorganization'sOresourcesOandOits

environment.

4)OAllOtheOaboveOareOtrueOaboutOstrategy.O-OCORRECTOANSWERS-
4)OAllOtheOaboveOareOtrueOaboutOstrategy.



WhichOofOtheOfollowingOisOtrueOaboutObudgeting?



1)OBudgetingOisOaOmeansOtoOcoordinateOtheOactivitiesOofOtheOorganization.

2)OBudgetingOisOaOmeansOtoOcommunicateOtheOorganization'sOobjectives.

3)OBudgetingOisOaOmeansOtoOanticipateOpossibleOproblemsOinOexecutingOstrategy.

4)OAllOtheOaboveOareOimportantOrolesOofObudgeting.O-OCORRECTOANSWERS-
4)OAllOtheOaboveOareOimportantOrolesOofObudgeting.



WhichOofOtheOfollowingOisOtheObestOdefinitionOofOanOincrementalOcost?



1)OAOvarianceObetweenOplannedOandOactualOcost.

2)OAnOunexpectedOcostOthatOarisesOfromOanOaccident.

3)OAOcostOthatOincreasesOasOtheOresultOofOaOdecision.

4)ONoneOofOtheOaboveOisOaOgoodOdefinitionOofOanOincrementalOcost.O-OCORRECTOANSWERS-
3)OAOcostOthatOincreasesOasOtheOresultOofOaOdecision.

,AOcompanyOhasOcapacityOtoOproduceOoneOunit.OItOcanOproduceOA,OB,OorOC.OAOhasOaOcontributionOm
arginOofO$10.OBOhasOaOcontributionOmarginOofO$8.OCOhasOaOcontributionOmarginOofO$12.OIfOtheOcom
panyOdecidesOtoOproduceOBOwhatOisOtheOopportunityOcost?



1)O$2.

2)O$10.

3)O$12.

4)ONoneOofOtheOabove.O-OCORRECTOANSWERS-3)O$12.



DollarOCompanyOproducesOaOsingleOproductOthatOhasOaOsellingOpriceOofO$10OperOunitOandOvariableO
costsOofO$6OperOunit.ODollarOCompanyOhasOtotalOfixedOcostsOofO$2,000,000.OHowOmanyOunitsOofOth
eOproductOmustODollarOCompanyOsellOtoOearnOaOtargetOprofitOofO$800,000ObeforeOtaxes?



1)O200,000

2)O500,000

3)O700,000O

NoneOofOtheOaboveO-OCORRECTOANSWERS-3)O700,000O=O(2,000,000+800,000)O/O(10-6)



InOmultiproductOcostOvolumeOprofitOanalysisOasOdescribedOinOthisOcourse,OwhatOwillObeOtheOeffectO
ofOanOincreaseOinOtheOvariableOcostOofOoneOproductOonOtheOproductOsalesOrequiredOtoOachieveOaOt
argetOprofit?



1)OTheOrequiredOunitOsalesOofOthatOproductOwillOdecrease.

2)OTheOrequiredOunitOsalesOofOthatOproductOwillOincrease.

3)OTheOrequiredOunitOsalesOofOallOproductsOwillOincrease.

4)ONoneOofOtheOabove.O-OCORRECTOANSWERS-
3)OTheOrequiredOunitOsalesOofOallOproductsOwillOincrease.

, DramaOCompanyOisOusingOallOitsOpracticalOcapacityOtoOproduceOitsOonlyOproduct,OwhichOhasOaOselli
ngOpriceOofO$26OperOunit,OmaterialsOcostOofO$10OperOunit,OandOlabourOcostOofO$12OperOunit.OLabou
rOisOtheOconstrainingOfactorOofOproductionOandO0.5OlabourOhoursOareOrequiredOtoOmakeOeachOunitO
ofOthisOproduct.OAnOimportantOcustomerOhasOaskedODollarOCompanyOtoOmakeOtwoOunitsOofOaOnew
Oproduct.OEachOunitOofOtheOnewOproductOwillObeOproducedObyOtakingOtheOexistingOproductOandOad


dingOmaterialsOcostOofO$5OandOanOadditionalO0.25OlabourOhours.OWhatOisOtheOfloorOpriceOforOtwoOu
nitsOofOthisOnewOproduct?



1)O$66.O

2)O$74.O

3)O$78.O

4)ONoneOofOtheOaboveO-OCORRECTOANSWERS-3)O$78.



=ODMO$10+$5O+ODLO$12/0.5hOperOregularOunitO*O0.75hOperOspecialOunitO+OOpp.OCostO$12OWithOOp
p.OCost:O



0.75hOperOspecialOunit*2OspecialOunitsO=O1.5OhOrequiredOforOtheOspecialOunits,OtoObeOreallocatedOfr
omOtheOregularOunits,Oi.e.O1.5h/0.5OhOperOuO=O3OregularOunitsOtoOsacrificeO@OCMUOofO$4O(=$26-10-
12)Opp.OcostOofOspecialOorderO=O3*$4O=O$12



YourOcourseOtextOmakesOtheOfollowingOstatementO"WhenOaOcompanyOproducesObothOhigh-
OvolumeOproductsOandOlow-


volumeOproducts,OtraditionalOproductOcostingOsystemsOareOlikelyOtoOxxxOhigh-
volumeOproducts".OTheOxxxOinOthisOstatementOshouldObeOreplacedOwithOwhichOoneOofOtheOfollowi
ng?



1)OOverOcost.

2)OUnderOcost.

3)OHaveOnoOeffectOonOtheOcostOof.

4)OReduceOtheOquantityOof.O-OCORRECTOANSWERS-1)OOverOcost.