BUS 215 FINAL EXAM –Questions and
Answers (Rated A+)
How is managerial accounting information used? - correct answer
controlling, and decision making
✅ Planning,
Why study managerial accounting - correct answer ✅ Managerial accounting
skills can be used for any career, organization, and industry
CSR - Corporate Social Responsibility - correct answer✅ a concept whereby
organizations consider the needs of all stakeholders when making decisions
Direct Cost (under absorption costing) - correct answer
and conveniently traced to a specific cost object
✅ cost that can be easily
Direct cost (under absorption) example - correct answer
manager in Tokyo
✅ Adidas' salary of sales
Indirect cost (under absorption costing) - correct answer
easily and conveniently traced to a specific cost object
✅ cost that cannot be
Indirect cost (under absorption) example - correct answer ✅ Campbell soup's
factory manager's salary - because it's incurred as a consequence of running the
entire factory
Product cost (under absorption) example - correct answer
acquiring or making a product
✅ All costs involved in
,BUS 215 FINAL EXAM –Questions and
Answers (Rated A+)
3 types of product costs under absorption costing - correct answer
materials, direct labor, and manufacturing overhead
✅ Direct
Direct materials - correct answer ✅
Materials that become an integral part of a
finished product and whose costs can be conveniently traced to it.
Direct Labor - correct answer
individual units of product
✅ factory labor costs that can be easily traced to
Manufacturing overhead - correct answer
materials and direct labor
✅ all manufacturing costs except direct
Period cost (under absorption) example - correct answer
not product costs
✅ All the costs that are
2 types of period costs under absorption costing - correct answer
administrative costs
✅ Selling and
Selling costs - correct answer ✅all costs that are incurred to secure customer
orders and get the finished product or service into the hands of the customer
Administrative costs - correct answer ✅
All executive, organizational, and clerical
costs associated with the general management of an organization rather than with
manufacturing or selling.
, BUS 215 FINAL EXAM –Questions and
Answers (Rated A+)
Fixed cost (under absorption costing) - correct answer ✅ Cost that remains
constant, in total, regardless of changes in the level of activity
Fixed cost (under absorption) example - correct answer ✅
Nooksack expeditions
rents a building for $500/ month regardless of how many guests enter the building
Variable cost (under absorption costing) - correct answer
direct proportion to changes in the level of activity
✅ Varies, in total, in
Variable cost (under absorption) example - correct answer ✅
Nooksack
expeditions provide equipment fees per guest, more guests means more money
Cost behavior - correct answer
activity
✅ how a cost reacts to changes in the level of
Total cost = - correct answer ✅FC in total + (VC per unit/base * # units/base)
correct answer ✅
When would you use job costing versus when would you use process costing? -
Job order costing is used where many different products, each
with individual and unique features, are produced each period
Process costing is used in industries that convert raw materials into homogeneous
products like bricks
Answers (Rated A+)
How is managerial accounting information used? - correct answer
controlling, and decision making
✅ Planning,
Why study managerial accounting - correct answer ✅ Managerial accounting
skills can be used for any career, organization, and industry
CSR - Corporate Social Responsibility - correct answer✅ a concept whereby
organizations consider the needs of all stakeholders when making decisions
Direct Cost (under absorption costing) - correct answer
and conveniently traced to a specific cost object
✅ cost that can be easily
Direct cost (under absorption) example - correct answer
manager in Tokyo
✅ Adidas' salary of sales
Indirect cost (under absorption costing) - correct answer
easily and conveniently traced to a specific cost object
✅ cost that cannot be
Indirect cost (under absorption) example - correct answer ✅ Campbell soup's
factory manager's salary - because it's incurred as a consequence of running the
entire factory
Product cost (under absorption) example - correct answer
acquiring or making a product
✅ All costs involved in
,BUS 215 FINAL EXAM –Questions and
Answers (Rated A+)
3 types of product costs under absorption costing - correct answer
materials, direct labor, and manufacturing overhead
✅ Direct
Direct materials - correct answer ✅
Materials that become an integral part of a
finished product and whose costs can be conveniently traced to it.
Direct Labor - correct answer
individual units of product
✅ factory labor costs that can be easily traced to
Manufacturing overhead - correct answer
materials and direct labor
✅ all manufacturing costs except direct
Period cost (under absorption) example - correct answer
not product costs
✅ All the costs that are
2 types of period costs under absorption costing - correct answer
administrative costs
✅ Selling and
Selling costs - correct answer ✅all costs that are incurred to secure customer
orders and get the finished product or service into the hands of the customer
Administrative costs - correct answer ✅
All executive, organizational, and clerical
costs associated with the general management of an organization rather than with
manufacturing or selling.
, BUS 215 FINAL EXAM –Questions and
Answers (Rated A+)
Fixed cost (under absorption costing) - correct answer ✅ Cost that remains
constant, in total, regardless of changes in the level of activity
Fixed cost (under absorption) example - correct answer ✅
Nooksack expeditions
rents a building for $500/ month regardless of how many guests enter the building
Variable cost (under absorption costing) - correct answer
direct proportion to changes in the level of activity
✅ Varies, in total, in
Variable cost (under absorption) example - correct answer ✅
Nooksack
expeditions provide equipment fees per guest, more guests means more money
Cost behavior - correct answer
activity
✅ how a cost reacts to changes in the level of
Total cost = - correct answer ✅FC in total + (VC per unit/base * # units/base)
correct answer ✅
When would you use job costing versus when would you use process costing? -
Job order costing is used where many different products, each
with individual and unique features, are produced each period
Process costing is used in industries that convert raw materials into homogeneous
products like bricks
