ACC1003
Accounting III
Finals Exam (Qns & Ans)
2025
General Instructions
1. Read All Questions Carefully: Make sure you understand each question.
2. Time Management: You have a specific amount of time to complete the exam.
Keep an eye on the clock and pace yourself.
3. Allowed Materials: Only use materials that are explicitly allowed. Unauthorized
materials can lead to disqualification.
4. ANS Format: Follow the required format for your ANS. For example, multiple-
choice questions might need you to select the best ANS, while essay questions
require detailed responses.
5. Academic Integrity: Adhere to the university's honor code. Any form of cheating or
plagiarism is strictly prohibited.
6. Technical Requirements: Ensure your computer and internet connection are
stable. For online exams, you might need a webcam and microphone for proctoring
purposes.
7. Submission: Submit your ANS before the time expires. Late submissions might
not be accepted.
©2024/2025
,1. Which of the following best describes the primary purpose of
managerial accounting?
- A. To provide financial information to external stakeholders
- B. To provide information for internal decision-making
- C. To manage daily operations
- D. To develop new products
- ANS: B
- Rationale: The primary purpose of managerial accounting is
to provide information for internal decision-making, helping
managers plan, control, and evaluate business operations.
2. What is the primary function of activity-based costing (ABC)?
- A. To allocate costs based on traditional volume measures
- B. To allocate costs based on activities and resources required
to produce products or services
- C. To track cash inflows and outflows
- D. To manage inventory levels
- ANS: B
- Rationale: Activity-based costing (ABC) allocates costs
based on activities and resources required to produce products or
services, providing more accurate cost information.
©2024/2025
,3. Which of the following is a key component of a flexible
budget?
- A. Fixed costs
- B. Variable costs
- C. Historical costs
- D. Sunk costs
- ANS: B
- Rationale: A flexible budget includes variable costs that
change with the level of activity, allowing for more accurate
budgeting and performance evaluation.
Fill-in-the-Blank Questions
4. The __________ method allocates overhead costs based on a
single cost driver, such as direct labor hours or machine hours.
- ANS: Traditional costing
- Rationale: The traditional costing method allocates
overhead costs based on a single cost driver, which may not
accurately reflect the actual resource usage.
5. In capital budgeting, __________ refers to the process of
evaluating and selecting long-term investment projects.
- ANS: Capital budgeting
©2024/2025
, - Rationale: Capital budgeting involves evaluating and
selecting long-term investment projects, helping managers make
informed decisions about resource allocation.
True/False Questions
6. The contribution margin is the difference between sales
revenue and fixed costs.
- ANS: False
- Rationale: The contribution margin is the difference
between sales revenue and variable costs, providing insights into
how much revenue is available to cover fixed costs and contribute
to profit.
7. A balanced scorecard is a performance management tool that
includes financial and non-financial measures.
- ANS: True
- Rationale: A balanced scorecard includes financial and non-
financial measures, providing a comprehensive view of
organizational performance.
Multiple Response Questions
8. Which of the following are components of a master budget?
(Select all that apply)
- A. Sales budget
©2024/2025
Accounting III
Finals Exam (Qns & Ans)
2025
General Instructions
1. Read All Questions Carefully: Make sure you understand each question.
2. Time Management: You have a specific amount of time to complete the exam.
Keep an eye on the clock and pace yourself.
3. Allowed Materials: Only use materials that are explicitly allowed. Unauthorized
materials can lead to disqualification.
4. ANS Format: Follow the required format for your ANS. For example, multiple-
choice questions might need you to select the best ANS, while essay questions
require detailed responses.
5. Academic Integrity: Adhere to the university's honor code. Any form of cheating or
plagiarism is strictly prohibited.
6. Technical Requirements: Ensure your computer and internet connection are
stable. For online exams, you might need a webcam and microphone for proctoring
purposes.
7. Submission: Submit your ANS before the time expires. Late submissions might
not be accepted.
©2024/2025
,1. Which of the following best describes the primary purpose of
managerial accounting?
- A. To provide financial information to external stakeholders
- B. To provide information for internal decision-making
- C. To manage daily operations
- D. To develop new products
- ANS: B
- Rationale: The primary purpose of managerial accounting is
to provide information for internal decision-making, helping
managers plan, control, and evaluate business operations.
2. What is the primary function of activity-based costing (ABC)?
- A. To allocate costs based on traditional volume measures
- B. To allocate costs based on activities and resources required
to produce products or services
- C. To track cash inflows and outflows
- D. To manage inventory levels
- ANS: B
- Rationale: Activity-based costing (ABC) allocates costs
based on activities and resources required to produce products or
services, providing more accurate cost information.
©2024/2025
,3. Which of the following is a key component of a flexible
budget?
- A. Fixed costs
- B. Variable costs
- C. Historical costs
- D. Sunk costs
- ANS: B
- Rationale: A flexible budget includes variable costs that
change with the level of activity, allowing for more accurate
budgeting and performance evaluation.
Fill-in-the-Blank Questions
4. The __________ method allocates overhead costs based on a
single cost driver, such as direct labor hours or machine hours.
- ANS: Traditional costing
- Rationale: The traditional costing method allocates
overhead costs based on a single cost driver, which may not
accurately reflect the actual resource usage.
5. In capital budgeting, __________ refers to the process of
evaluating and selecting long-term investment projects.
- ANS: Capital budgeting
©2024/2025
, - Rationale: Capital budgeting involves evaluating and
selecting long-term investment projects, helping managers make
informed decisions about resource allocation.
True/False Questions
6. The contribution margin is the difference between sales
revenue and fixed costs.
- ANS: False
- Rationale: The contribution margin is the difference
between sales revenue and variable costs, providing insights into
how much revenue is available to cover fixed costs and contribute
to profit.
7. A balanced scorecard is a performance management tool that
includes financial and non-financial measures.
- ANS: True
- Rationale: A balanced scorecard includes financial and non-
financial measures, providing a comprehensive view of
organizational performance.
Multiple Response Questions
8. Which of the following are components of a master budget?
(Select all that apply)
- A. Sales budget
©2024/2025
