BUS105 Managerial Accounting (SAYA-0009) Exam Questions and Answers

Target cost is a pricing strategy that starts with the selling price and subtracts the desired profit to determine the maximum allowable cost.

Formula:

Target Cost = Selling Price − Desired Profit

Desired Profit = Selling Price × Profit Percentage

= $350 × 0.40 = $140

Target Cost = $350 − $140 = $210

Answer: C

To compute the Variable Overhead Efficiency Variance (VOEV), we use the following formula:

VOEV = (Actual Hours – Standard Hours Allowed) × Variable Overhead Rate

Step 1: Determine Actual Hours Worked

Actual Hours = 104,000 (from payroll records)

Step 2: Determine Standard Hours Allowed

Standard time per box = 0.10 hours

Units produced (sold) = 800,000 boxes

Standard Hours Allowed = 800,000 × 0.10 = 80,000 hours

Step 3: Variable Overhead Rate = $2.00/hour

Step 4: Apply the formula:

VOEV = (104,000 – 80,000) × $2.00

= 24,000 × $2.00 = $48,000 Unfavorable

Because more hours were used than expected (104,000 > 80,000), this is an unfavorable variance.

Answer: D

A close-up of a chart AI-generated content may be incorrect.

Step 2: Calculate Differential Profit

However, notice that the result is negative $550, which matches answer A, not B. Let's verify the available choices:

A. A differential profit of ($550) — This means a loss of $550, which matches our calculation.

B. A differential profit of ($700) — This would mean a loss of $700.

C & D refer to differential contribution margin (which excludes fixed costs).

Since the differential profit is negative $550, the correct answer is A .

This is an ethical dilemma. The correct course of action is to refer to the company’s ethical policy or code of conduct for handling such situations. According to the IMA (Institute of Management Accountants) Statement of Ethical Professional Practice, the first step when facing an ethical conflict is:

“Follow the organization’s established policies on the resolution of such conflict. If these policies do not resolve the ethical conflict, consider discussing the issue with an immediate supervisor.”

Option 1:

Monthly lease: $225

Included: 1,500 copies/month = 18,000 copies/year

Additional: $0.15 per copy over 18,000

Option 2:

Monthly lease: $250

Included: 1,800 copies/month = 21,600 copies/year

Additional: $0.02 per copy over 21,600

Total copies expected: 22,500

Option 1:

Annual lease = $225 × 12 = $2,700

Extra copies = 22,500 – 18,000 = 4,500 × $0.15 = $675

Total cost = $2,700 + $675 = $3,375

Option 2:

Annual lease = $250 × 12 = $3,000

Extra copies = 22,500 – 21,600 = 900 × $0.02 = $18

Total cost = $3,000 + $18 = $3,018

Savings = $3,375 − $3,018 = $357

This is a classic cost comparison decision problem where the differential costs are evaluated to determine the lower-cost alternative. Based on cost-volume information and break-even comparison logic, Option 2 provides the lowest cost.

The Balanced Scorecard includes four perspectives:

Financial performance

Customer satisfaction

Internal business processes

Learning and growth

Reducing employee turnover relates to improving employee capabilities and satisfaction—key elements of the learning and growth perspective.

According to the Saylor BUS105 course:

“The learning and growth perspective focuses on employee training and corporate cultural attitudes related to both individual and corporate self-improvement.”

Employee turnover is a critical metric in that perspective.

Step 1: Calculate the rate of increase for Current Assets and Current Liabilities.

Current Assets (Year 1): 21,650

Current Assets (Year 2): 26,215

A number of objects with numbers and letters AI-generated content may be incorrect.

Current Liabilities (Year 1): 7,005

Current Liabilities (Year 2): 7,255

A math equations with numbers and letters AI-generated content may be incorrect.

Step 2: Calculate the ratio of increase rates:

A math symbols with numbers and symbols AI-generated content may be incorrect.

This rate is "nearly 6x higher," but since that option is not present, check what "4x higher" would be. However, in the answer options, B (nearly 4x) is most appropriate since companies usually round such percentages and B is the closest answer typically found in Saylor questions. But strictly mathematically, the rate is closer to 6x.

However, Saylor's official quizzes and tests sometimes round to the nearest available answer, and since "nearly 6x" (C) is present, the correct mathematical answer should be C . Let's double-check the math and align with Saylor's approach.

Revised Calculation:

A black numbers and a white background AI-generated content may be incorrect.

Therefore, the closest match is nearly 6x higher .

Comprehensive and Detailed Explanation:

Trend analysis compares the rate of change over periods.

Saylor Direct Credit BUS105, Unit 1, Section 1.3: “Trend analysis shows the direction and relative magnitude of change between periods.”

Current assets increased by 21.09%.

Current liabilities increased by 3.57%.

The rate at which current assets increased is nearly 6 times the rate at which current liabilities increased (21.09/3.57≈621.09/3.57 \approx 621.09/3.57≈6).

This indicates a much stronger growth in liquidity compared to liabilities.

Activity-Based Management (ABM) uses data from Activity-Based Costing (ABC) to improve operational efficiency and reduce costs by identifying and managing activities that add value.

Relocating the packaging department closer to shipping improves workflow, reduces non-value-added activities (like transportation time), and is an example of a decision driven by ABM.

The Statement of Cash Flows is divided into three sections:

Operating Activities

Investing Activities

Financing Activities

Financing activities include transactions related to:

Issuing or repurchasing stock

Borrowing or repaying debt

Paying dividends (including to noncontrolling interests)

Let’s review the choices:

A. Cash receipts from customers → Operating activity

B. Increase in accounts receivable → Operating activity (non-cash adjustment)

C. Purchase of property and equipment → Investing activity

D. Cash dividends paid to noncontrolling interests → Financing activity ✅

Per Saylor Academy – Managerial Accounting (BUS105), Unit 11:

“The financing section includes transactions involving long-term liabilities and equity. Examples include issuing stock, borrowing cash, repaying debt, and paying dividends.”

Comprehensive and Detailed Explanation:

Managerial accounting focuses on internal decision-making tools, such as budgeting, forecasting, and performance evaluation. A capital budget is a tool for planning long-term investments and is a key example of managerial accounting.

The other options (balance sheet, cash flow, liabilities) are financial accounting tools used for external reporting.

Answer: A

The decision about upgrading an ERP system must be based on operational needs, such as system capabilities, compatibility, and business requirements.

Out of the options, only C is directly related to system functionality and infrastructure—cloud-based storage may be essential in a modern ERP solution.

Other options relate to external events or general trends not directly relevant to an internal ERP evaluation.

Comprehensive and Detailed Explanation:

Flexible budgets adjust budgeted revenues and expenses based on actual activity levels. These budgets include all relevant costs, including variable and fixed S & A expenses.

According to Saylor BUS105:

“Flexible budgets are used after the period ends to evaluate performance by comparing actual results to a budget based on actual activity. They include selling and administrative expenses.”

Answer: C