FIN302
Managerial Accounting & Finance
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 is considered a variable cost?
a) Depreciation
b) Rent
c) Cost of raw materials
d) Salaries
ANS: c) Cost of raw materials
Rationale: Variable costs change with the level of production,
while fixed costs remain constant regardless of production levels.
2. What is the primary purpose of a flexible budget?
a) To estimate fixed costs
b) To provide a comparison between actual and budgeted
performance
c) To allocate overhead costs
d) To determine break-even points
©2024/2025
, ANS: b) To provide a comparison between actual and
budgeted performance
Rationale: Flexible budgets adjust for actual activity levels,
allowing for better performance evaluation.
3. Which of the following methods is commonly used to
evaluate investment projects?
a) Payback Period
b) Apprenticeship Model
c) Training Simulation
d) SWOT Analysis
ANS: a) Payback Period
Rationale: The Payback Period measures how long it takes
for an investment to generate enough cash flows to recover its
initial cost.
4. What does the term 'opportunity cost' refer to?
a) The cost incurred by funding a project
b) The potential return lost when one investment is chosen over
another
c) The actual cash outflow from an investment
©2024/2025
Managerial Accounting & Finance
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 is considered a variable cost?
a) Depreciation
b) Rent
c) Cost of raw materials
d) Salaries
ANS: c) Cost of raw materials
Rationale: Variable costs change with the level of production,
while fixed costs remain constant regardless of production levels.
2. What is the primary purpose of a flexible budget?
a) To estimate fixed costs
b) To provide a comparison between actual and budgeted
performance
c) To allocate overhead costs
d) To determine break-even points
©2024/2025
, ANS: b) To provide a comparison between actual and
budgeted performance
Rationale: Flexible budgets adjust for actual activity levels,
allowing for better performance evaluation.
3. Which of the following methods is commonly used to
evaluate investment projects?
a) Payback Period
b) Apprenticeship Model
c) Training Simulation
d) SWOT Analysis
ANS: a) Payback Period
Rationale: The Payback Period measures how long it takes
for an investment to generate enough cash flows to recover its
initial cost.
4. What does the term 'opportunity cost' refer to?
a) The cost incurred by funding a project
b) The potential return lost when one investment is chosen over
another
c) The actual cash outflow from an investment
©2024/2025
