BUS3059
Quantitative Business Analysis
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. What is the primary purpose of variance analysis in
budgeting?
a) To record actual costs
b) To compare actual costs against forecasted costs
c) To calculate depreciation
d) To assess employee performance
ANS: b . Variance analysis aims to identify differences
between actual and budgeted performance, helping organizations
control costs and improve forecasting accuracy.
2. Which of the following represents the correct formula to
compute the break-even point in units?
a) Fixed Costs / (Selling Price - Variable Cost)
b) Total Revenue / Total Costs
c) Variable Costs / (Selling Price - Fixed Cost)
d) Fixed Costs + Variable Costs / Selling Price
ANS: a . The break-even point in units is calculated by
dividing total fixed costs by the difference between selling price
per unit and variable cost per unit.
3. If a company has a contribution margin ratio of 40%, how
much sales revenue is needed to cover fixed costs of $120,000?
©2024/2025
, a) $300,000
b) $480,000
c) $100,000
d) $150,000
ANS: b . Required Sales = Fixed Costs / Contribution Margin
Ratio = $120,.40 = $300,000.
4. An increase in which of the following would typically lead to
a higher net present value (NPV) for an investment project?
a) Discount rate
b) Initial investment
c) Cash inflows over time
d) All of the above
ANS: c . Increasing cash inflows while keeping other
variables constant positively impacts NPV, making the project
more desirable.
5. What financial metric is primarily used to assess the
profitability of a company relative to its total assets?
a) Return on Equity
b) Return on Assets
c) Gross Profit Margin
©2024/2025
, d) Net Profit Margin
ANS: b . Return on Assets (ROA) measures how effectively a
company is using its assets to generate profit.
---
Fill-in-the-Blank Questions
6. The ________ method allocates overhead costs to products
based on the estimated costs associated with specific activities.
ANS: Activity-based costing . This method improves cost
allocation by focusing on activities that consume resources.
7. The ________ ratio compares a company’s current assets to
its current liabilities, providing insight into its short-term
liquidity.
ANS: Current . The current ratio is calculated as current
assets divided by current liabilities.
8. In discounted cash flow analysis, the ________ rate is used to
determine the present value of future cash flows.
ANS: Discount . The discount rate reflects the opportunity
cost and risk associated with the cash flow.
©2024/2025
Quantitative Business Analysis
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. What is the primary purpose of variance analysis in
budgeting?
a) To record actual costs
b) To compare actual costs against forecasted costs
c) To calculate depreciation
d) To assess employee performance
ANS: b . Variance analysis aims to identify differences
between actual and budgeted performance, helping organizations
control costs and improve forecasting accuracy.
2. Which of the following represents the correct formula to
compute the break-even point in units?
a) Fixed Costs / (Selling Price - Variable Cost)
b) Total Revenue / Total Costs
c) Variable Costs / (Selling Price - Fixed Cost)
d) Fixed Costs + Variable Costs / Selling Price
ANS: a . The break-even point in units is calculated by
dividing total fixed costs by the difference between selling price
per unit and variable cost per unit.
3. If a company has a contribution margin ratio of 40%, how
much sales revenue is needed to cover fixed costs of $120,000?
©2024/2025
, a) $300,000
b) $480,000
c) $100,000
d) $150,000
ANS: b . Required Sales = Fixed Costs / Contribution Margin
Ratio = $120,.40 = $300,000.
4. An increase in which of the following would typically lead to
a higher net present value (NPV) for an investment project?
a) Discount rate
b) Initial investment
c) Cash inflows over time
d) All of the above
ANS: c . Increasing cash inflows while keeping other
variables constant positively impacts NPV, making the project
more desirable.
5. What financial metric is primarily used to assess the
profitability of a company relative to its total assets?
a) Return on Equity
b) Return on Assets
c) Gross Profit Margin
©2024/2025
, d) Net Profit Margin
ANS: b . Return on Assets (ROA) measures how effectively a
company is using its assets to generate profit.
---
Fill-in-the-Blank Questions
6. The ________ method allocates overhead costs to products
based on the estimated costs associated with specific activities.
ANS: Activity-based costing . This method improves cost
allocation by focusing on activities that consume resources.
7. The ________ ratio compares a company’s current assets to
its current liabilities, providing insight into its short-term
liquidity.
ANS: Current . The current ratio is calculated as current
assets divided by current liabilities.
8. In discounted cash flow analysis, the ________ rate is used to
determine the present value of future cash flows.
ANS: Discount . The discount rate reflects the opportunity
cost and risk associated with the cash flow.
©2024/2025
