BA 225 Final Exam Answers

BA 225 Final Exam Answers

 

QUESTION 1

  1. What is the difference between financial accounting and managerial accounting?

 

QUESTION 2

  1. Explain the two reasons why the shorter the payback period the more attractive the investment is when the payback technique is used?

 

QUESTION 3

  1. Distinguish between a master budget and a sales forecast.

 

QUESTION 4

  1. Explain the nature and importance of a job cost sheet.

 

 

QUESTION 5

 

  1. Distinguish among operating, investing, and financing activities.

 

 

QUESTION 6

  1. Managers’ activities and responsibilities can be classified into three broad functions. List and discuss each function.

 

 

QUESTION 7

  1. Identify and discuss the relevant costs in accepting an order at a special price.

 

 

QUESTION 8

  1. Smith & Company claims that the relevant range concept is only important for variable costs. Explain the relevant range concept and discuss whether you agree with Smith & Company.

 

QUESTION 9

  1. What is a CVP analysis and how is it used in managerial accounting?

 

QUESTION 10

  1. What is the difference between: unit-level, batch-level, product-level, and facility-level activities?