BUS 209 Final Exam Questions with
100% Correct Answers
What is managerial accounting? Does it focus on the past or future? How is the
information presented? Correct Answer: -accounts financial information for
internal company
-future
-budgets
What are internal controls? What are the three separate functions of them?
Correct Answer: -policies a company sets to protect their assets
-authorization of transaction, custody of asset, record keeping
What is collusion? Correct Answer: when 2 or more people agree to a dishonest
practice
What is embezzlement? Correct Answer: unlawful taking of property by
someone to whom it was entrusted
What are the three cost components of a manufacturing company? Correct
Answer: direct materials, direct labor, overhead
What are direct materials? Correct Answer: materials that are directly traceable
into a finished good
What is direct labor? Give examples and non-examples. Correct Answer: -labor
costs that are directly associated with a finished good
-example: people who directly put products together
, -non example: supervisors, custodians, etc.
What is overhead? Correct Answer: includes indirect materials, indirect labor,
and all costs associated with manufacturing the product (taxes, depreciation,
etc.)
What are product costs? Correct Answer: costs that occur in the factor.
classified as either direct materials, direct labor, or overhead
What are period costs? Correct Answer: selling and administrative costs
What are the three types of inventory in a manufacturing setting? Correct
Answer: raw material inventory, work-in-process inventory, and finished goods
inventory
What is raw material inventory? Correct Answer: purchased but not processed
What is work-in-process inventory? Correct Answer: All material on the factory
floor that is not yet completed
What is finished goods inventory? Correct Answer: manufactured goods that
are complete and ready for sale
What are prime costs? Correct Answer: direct materials and direct labor
What are conversion costs? Correct Answer: direct labor and overhead
What is material requisition? Correct Answer: request for material to get released
onto production floor
What is job order costing? Correct Answer: costing out a particular job
How do you calculate pre-determined overhead rate? Correct Answer: total
estimated overhead costs / cost driver (total estimated direct labor hours)
100% Correct Answers
What is managerial accounting? Does it focus on the past or future? How is the
information presented? Correct Answer: -accounts financial information for
internal company
-future
-budgets
What are internal controls? What are the three separate functions of them?
Correct Answer: -policies a company sets to protect their assets
-authorization of transaction, custody of asset, record keeping
What is collusion? Correct Answer: when 2 or more people agree to a dishonest
practice
What is embezzlement? Correct Answer: unlawful taking of property by
someone to whom it was entrusted
What are the three cost components of a manufacturing company? Correct
Answer: direct materials, direct labor, overhead
What are direct materials? Correct Answer: materials that are directly traceable
into a finished good
What is direct labor? Give examples and non-examples. Correct Answer: -labor
costs that are directly associated with a finished good
-example: people who directly put products together
, -non example: supervisors, custodians, etc.
What is overhead? Correct Answer: includes indirect materials, indirect labor,
and all costs associated with manufacturing the product (taxes, depreciation,
etc.)
What are product costs? Correct Answer: costs that occur in the factor.
classified as either direct materials, direct labor, or overhead
What are period costs? Correct Answer: selling and administrative costs
What are the three types of inventory in a manufacturing setting? Correct
Answer: raw material inventory, work-in-process inventory, and finished goods
inventory
What is raw material inventory? Correct Answer: purchased but not processed
What is work-in-process inventory? Correct Answer: All material on the factory
floor that is not yet completed
What is finished goods inventory? Correct Answer: manufactured goods that
are complete and ready for sale
What are prime costs? Correct Answer: direct materials and direct labor
What are conversion costs? Correct Answer: direct labor and overhead
What is material requisition? Correct Answer: request for material to get released
onto production floor
What is job order costing? Correct Answer: costing out a particular job
How do you calculate pre-determined overhead rate? Correct Answer: total
estimated overhead costs / cost driver (total estimated direct labor hours)
