BUS 215 Final Exam Questions and Answers (Rated A+) 2026

BUS 215 Final Exam Questions and
Answers (Rated A+) 2026

not be considered in decision making. TRUE OR FALSE - correct answer ✅
Costs and Revenues that differ between alternatives are NOT relevant and should
False




answer ✅
Fixed Costs will vary in total but not on a per unit basis. TRUE OR FALSE - correct
False




manufacturing company? - correct answer ✅
Which of the following are the major 3 elements of product costs in a
Direct Materials
Direct Labor
Manufacturing Overhead


Which of the following is true about a mixed cost? - correct answer
decrease on a per unit basis as activity increases.
✅ It will




Variable Costs... - correct answer
within the relevant range
✅are always the same on a per unit basis




Manufacturing Overhead - correct answer
particular cost object
✅ cannot be directly traced to a




Which of the following is true about a direct cost? - correct answer
include Direct Labor and Direct Materials
✅ Direct costs




manufacturing) Company? - correct answer ✅
Which is true about the Cost of Goods Sold for a Merchandising (Non-
It is calculated as Beginning
Inventory + Merchandise Purchases - Ending Inventory

,BUS 215 Final Exam Questions and
Answers (Rated A+) 2026

The Contribution Margin of a particular product.... - correct answer
the Sales Price less the Variable Costs of the product
✅ is equal to




A sunk cost... - correct answer
or in the future
✅ cannot be changed by any decision made now




The cost of a completed job in a job-order costing system typically consists of the

any selling costs anticipated for the job. TRUE OR FALSE - correct answer ✅
actual direct materials cost of the job, the actual direct labor cost of the job, and
False




Inventory. TRUE OR FALSE - correct answer ✅
Jobs completed during the period but unsold are included in Finished Goods
True




✅
Which are accounted for on the Job Cost Sheet (Work Order)? - correct answer
Direct Materials, Direct Labor, & Manufacturing Overhead


A company estimates its Fixed MOH costs to be $100,000, its Variable MOH costs
to be $1.20 / Direct Labor Hour (DLH), and estimates that it will work 2,000 DLH's

Predetermined Overhead Rate? - correct answer ✅
during the upcoming year. If DLH's are used to allocate MOH, what is the
$51.20 / DLH




in: - correct answer ✅
The costs of jobs that have been started but are not yet completed are included
Work in Process

,BUS 215 Final Exam Questions and
Answers (Rated A+) 2026
A company that has allocates its manufacturing overhead on Direct Labor Hours

upcoming period: - correct answer
upcoming period
✅
will use the following to compute its Predetermined Overhead Rate for the
estimated manufacturing costs for the




what? - correct answer ✅
A direct labor rate for a machining department should be calculated based on
A burdened average hourly rate of the direct labor
employees in the machining department that includes costs of employee benefits




- correct answer ✅
In job costing, the total unit cost is computed by dividing the total cost of the job...
by the total number of units in the job




when: - correct answer ✅
Departmental overhead rates are generally preferred to plant-wide overhead rates
the activities of the various departments in the plant
are not homogeneous (alike).




✅
Which of the costs are considered to be directly traced to a job? - correct answer
Direct Materials




correct answer ✅
In a job-order costing system, indirect labor cost is usually recorded as a debit to: -
Manufacturing Overhead




correct answer ✅
The journal entry to record applying overhead during the production process is: -
Debit Work in Process, Credit Manufacturing Overhead

, BUS 215 Final Exam Questions and
Answers (Rated A+) 2026
Under a job-order costing system, the dollar amount transferred from Work in

answer ✅
Process to Finished Goods is the sum of the costs charged to all jobs: - correct
completed during the period


In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the "Total

materials inventory" and: - correct answer ✅
raw materials available" is computed by adding together the "Beginning raw
Purchases of raw materials


if manufacturing overhead is underapplied, then: - correct answer ✅ the amount
of manufacturing overhead cost applied to Work in Process is less than the actual
manufacturing overhead cost incurred.




- correct answer ✅
When raw materials are purchased, they are recorded as an asset. TRUE OR FALSE
true




TRUE OR FALSE - correct answer ✅
Advertising costs should NOT be charged to the Manufacturing Overhead account.
true


In the Schedule of Cost of Goods Sold, Unadjusted cost of goods sold = Beginning

inventory. TRUE OR FALSE - correct answer ✅
finished goods inventory + Cost of goods manufactured − Ending finished goods
true


If the actual manufacturing overhead cost for a period exceeds the manufacturing

overapplied. TRUE OR FALSE - correct answer ✅
overhead cost applied, then manufacturing overhead would be considered to be
false