Bus 475 Final Exam Study Guide Essay

5089 Words Jan 5th, 2014 21 Pages
BUS 475 Final Exam 2012 – Set 4

1) Which one of the following is a product cost?
A. Indirect laborB. Sales person’s salariesC. Office salariesD. Advertising costs
2) Lucy starts her own psychiatric practice, but her expenditures to open the practice exceed her income. Lucy is a __________.
A. borrower who demands money from the financial systemB. borrower who supplies money to the financial systemC. saver who supplies money to the financial systemD. saver who demands money from the financial system 3) Of the following companies, which one would not likely employ the specific identification method for inventory costing?
A. Music store specializing in organ salesB. Antique shopC. Farm implement
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A. generally accepted accounting principlesB. relevance to decisionsC. the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management
D. the Sarbanes-Oxley Act of 2002
10) The primary purpose of the statement of cash flows is to __________.
A. facilitate banking relationshipsB. provide information about the cash receipts and cash payments during a period
C. provide information about the investing and financing activities during a period
D. prove that revenues exceed expenses if there is a net income
11) Managerial accounting __________.
A. places emphasis on special-purpose informationB. pertains to the entity as a whole and is highly aggregatedC. is concerned with costing productsD. is governed by generally accepted accounting principles
12) A well-designed activity-based costing system starts with __________.
A. analyzing the activities performed to manufacture a productB. assigning manufacturing overhead costs for each activity cost pool to products
C. identifying the activity-cost poolsD. computing the activity-based overhead rate
13) Balance sheet accounts are considered to be __________.
A. nominal accountsB. capital accountsC. temporary stockholders’ accountsD. permanent accounts
14) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant

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