2026 BUS105 dumps review - Professional Quiz Study Materials [Q14-Q31]

2026 BUS105 dumps review - Professional Quiz Study Materials

BUS105 Test Prep Training Practice Exam Questions Practice Tests

NEW QUESTION # 14
SJ Candles should expect the absorption costing and variable costing methods to result in the same 4th quarter operating profit when which of the following is true?

A. They started the 4th quarter with no inventory and every candle that was produced in the 4th quarter also sold
B. They sold all remaining 3rd quarter inventory in 4th quarter and produced zero candles in 4th quarter
C. Their 4th quarter sales included every candle produced in the 4th quarter as well as a few that remained in inventory from the 3rd quarter
D. They started the 4th quarter with no inventory and sold 80% of the candles that were produced in the 4th quarter

Answer: A

NEW QUESTION # 15
The manager of Ladron Candies is deciding whether or not to invest in new equipment with a purchase price of $10,500 and a required rate of return of 7%. Given this calculation of the present value of cash inflows and outflows for the next three years, what should he decide, based on the internal rate of return?

A. Reject the investment, because the internal rate of return cannot be determined with the information given.
B. Accept the investment, because the internal rate of return is approximately 6% and results in a profit after three years.
C. Accept the investment, because the internal rate of return is approximately 7%, which equals the required rate of return.
D. Reject the investment, because the internal rate of return is approximately 7% and results in a loss after three years.

Answer: C

NEW QUESTION # 16
Which row correctly identifies the calculation to establish standard costs for direct materials, direct labor, and factory overhead?

A. Row 1
B. Row 4
C. Row 2
D. Row 3

Answer: B

NEW QUESTION # 17
Bethel Bakery manufactures frosted sugar cookies. They maintain separate work-in-process accounts for their blending, cutting, baking, decorating, and packaging departments. Which costing method is Bethel Bakery most likely using?

A. Activity-based costing
B. Departmental costing
C. Process costing
D. Job costing

Answer: C

NEW QUESTION # 18
Coffee Beanz, Inc. currently maintains decentralized operations. The CEO is evaluating whether the company should centralize their operations. Which of the following situations would make centralized operations more beneficial than decentralized?

A. The company is adding five new product lines in the next year
B. The company just opened a new factory in another state
C. Additional employees are necessary to manage an increase in production
D. Decreasing revenues have created a demand for decreasing expenses

Answer: D

NEW QUESTION # 19
You are the financial accountant for Antioch Ski Resort. Managers have been promised end-of-year bonuses if profits for the year increase by 10%. At the end of the year, you determine that profits increased by only 8%, and the managers ask you to "fudge the numbers a bit" so they can still receive their bonuses. What should you do?

A. Check whether the company has a policy on resolving ethical conflicts
B. Report the managers to the CEO
C. Consider inflating the profits for the year, since it is only a 2% difference
D. Resign from the company

Answer: A

NEW QUESTION # 20
SJ Candles subscribes to a management theory known as management by exception. Which of the following best describes a situation where management by exception would be applied?

A. There are significant activities occurring outside of the relevant range which require additional analysis
B. Management is faced with an ethical issue regarding a decision about investing in long-term assets
C. There is a $26,000 unfavorable labor rate variance that is 1% higher than their threshold for investigating variances
D. Tax savings resulted in an unplanned 25% increase to net income in year 2

Answer: C

NEW QUESTION # 21
Thompson Dental is deciding between two lease options for a new copier. They anticipate making 22,500 copies spread evenly over the course of the year. Which of the following options should they choose if they want to save the most money on an annual basis, and how much money will they save?
Option 1: Monthly lease: $225, Included copies: 1,500/month, Additional copies: $0.15 per copy Option 2: Monthly lease: $250, Included copies: 1,800/month, Additional copies: $0.02 per copy

A. Option 1; $16 annual savings
B. Option 2; $189 annual savings
C. Option 1; $300 annual savings
D. Option 2; $357 annual savings

Answer: D

NEW QUESTION # 22
How does a statement of cash flows provide value for a company?

A. By showing the change from the beginning cash balance to the ending cash balance on the balance sheet
B. By showing revenues and expenses using the accrual basis of accounting
C. By showing assets, liabilities, and owners' equity at a point in time
D. By showing events that changed the stockholder's equity over the course of the accounting period

Answer: A

NEW QUESTION # 23
These tables pertain to the blending department of Martinez Corporation, a paint manufacturer, for the month of August.
Units accounted for in the mixing department:

Total costs to be accounted for in the mixing department:

What is the cost per equivalent unit for direct labor, and what is the cost of direct labor to be assigned to ending work in process inventory?

A. $14 per equivalent unit; $7,000 direct labor cost assigned to ending WIP inventory
B. $14 per equivalent unit; $8,400 direct labor cost assigned to ending WIP inventory
C. $101 per equivalent unit; $85,850 direct labor cost assigned to ending WIP inventory
D. $101 per equivalent unit; $60,600 direct labor cost assigned to ending WIP inventory

Answer: A

NEW QUESTION # 24
What is the balance in the manufacturing overhead account after these transactions were recorded, assuming the beginning balance was zero?

A. $6,000
B. $4,780
C. $700
D. $6,700

Answer: C

NEW QUESTION # 25
This is the balance sheet for Swinney Services. Using trend analysis, what does this information tell us about the trends for current assets and current liabilities?

A. Current assets increased at a rate nearly 4x higher than current liabilities
B. Current assets increased at a rate nearly 6x higher than current liabilities
C. Current assets increased at a rate nearly 10x higher than current liabilities
D. Current assets increased at a rate nearly 2x higher than current liabilities

Answer: C

NEW QUESTION # 26
This is select financial statement data for the three divisions of Technology Goods, Inc. Assuming all assets are operating assets, what is the return on investment for each division?

A. 82.2%, 39.0%, 66.0%
B. 17.8%, 10.0%, 15.9%
C. 53.0%, 32.0%, 50.9%
D. 33.1%, 31.3%, 31.2%

Answer: B

NEW QUESTION # 27
Strang Tax provides tax consulting services to its clients whom they charge on an hourly basis. They would like to use differential analysis to determine whether profits would change if they dropped certain clients. Which of the following items should be excluded from this analysis?

A. Consulting fees
B. Project management costs
C. Rent expenses
D. Wages payable

Answer: C

NEW QUESTION # 28
Ladron Candies uses activity-based costing to allocate variable factory overhead costs. Which of the following statements best represents the excerpted activity data for indirect materials?
Indirect Materials:

A. There is a $1,000 favorable spending variance
B. There is a $500 unfavorable efficiency variance
C. There is a $500 favorable spending variance
D. There is a $1,000 unfavorable efficiency variance

Answer: C

NEW QUESTION # 29
This is select financial statement data for Binks Corporation. What is the inventory turnover ratio for year 2?

A. 4.4
B. 4.7
C. 2.3
D. 7.2

Answer: B

NEW QUESTION # 30
Archer Corporation manufactures coffee cups in the Midwest. Using this data, calculate the total current period manufacturing costs for the Schedule of Cost of Goods Manufactured for the year ending on December 31, 2021.