END OF SEMESTER EXAMINATION
SEMESTER 2, 2012/2013 SESSION
KULLIYYAH OF ECONOMICS AND MANAGEMENT SCIENCES
Level of Study
2.30 pm – 5.30 pm
3 Hr(s) 0 Min(s)
(This Question Paper Consists of 9 Printed Pages including the cover page) DO NOT OPEN UNTIL YOU ARE ASKED TO DO SO
INSTRUCTION(S) TO CANDIDATES
ANSWER ALL QUESTIONS.
SHOW ALL WORKINGS.
DO NOT WRITE IN PENCIL
ANY FORM OF CHEATING OR ATTEMPT TO CHEAT IS A SERIOUS OFFENCE WHICH MAY LEAD TO DISMISSAL
SECTION A – MULTIPLE CHOICE QUESTIONS
1. Which of the following statements represents a similarity between financial and managerial accounting?
A. Both are useful in providing information for external users. B. Both are governed by GAAP.
C. Both draw upon data from an organization's accounting system. D. Both rely heavily on published financial statements.
E. Both are solely concerned with historical transactions.
2. Which of the following is not a period cost?
A. Legal costs.
B. Public relations costs.
C. Sales commissions.
D. Wages of assembly-line workers.
E. The salary of a company's chief financial officer (CFO).
3. Mastel Company has a variable selling cost. If sales volume increases, how will the total variable cost and the variable cost per unit behave?
4. Feinstein, Inc., an appliance manufacturer, is developing a new line of ovens that uses controlled-laser technology. The research and testing costs associated with the new ovens is said to arise from a:
A. unit-level activity.
B. batch-level activity.
C. product-sustaining activity.
D. facility-level activity.
E. competitive-level activity.
5. A flexible budget:
A. parallels a static budget with respect to format and advantages of use. B. is preferred over a static budget in the evaluation of performance. C. gives management flexibility in terms of meeting budget goals. D. can be used to compare actual and budgeted costs at various levels of activity. E. is characterized by choices "B" and "D" above.
6. A perfection standard:
A. tends to motivate employees over a long period of time.
B. is attainable in an ideal operating environment.
C. would make allowances for normal amounts of scrap and waste. D. is generally preferred by behavioral scientists.
E. will result in a number of favorable variances on a performance report. 7. Which of the following variances are most similar with respect to the manner in which they are calculated?
A. Labor rate variance and labor efficiency variance.
B. Material price variance and material quantity variance.
C. Material price variance, material quantity variance, and total material variance. D. Material price variance and labor efficiency variance.
E. Material quantity variance and labor efficiency variance. 8. Product costing in a manufacturing firm is the process of: A. accumulating the company's period costs.
B. allocating costs among the firm's departments.
C. placing a value on the company's fixed assets.
D. assigning costs to the firm's inventory.
E. assigning costs to the company's managers.
9. When using normal costing, the total production cost of a job is composed of: A. direct material and direct labor.
B. direct material, direct labor, manufacturing overhead, and outlays for selling costs. C. direct material, direct labor, manufacturing overhead, and outlays for both selling and administrative costs.
D. direct material, direct labor, and applied manufacturing overhead. E. direct material, direct labor, and actual manufacturing overhead. 10. Which of the following manufacturers would most likely use job-order costing? A. Chemical manufacturers.
B. Microchip processors.
C. Custom-furniture manufacturers.
D. Gasoline refiners.
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