BLUECREST LIBERIA
SCHOOL OF GRADUATE STUDIES
SESSION - FALL 2024
Name of the Subject: Management
Name of the Program: BBA
Accounting
Subject Code: BBA 224 Semester: IV
Date of the Exam: October 24th, 2024 Exam-type: Mid-term (Regular)
Student Name: Student Signature:
Duration of the Exam: 1 Hour 30 Minutes Total Marks: 25
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STANDING INSTRUCTIONS
• Students writing exams shall be seated in the specified exam hall at least 15 minutes prior to the commencement of the
examination
• Question paper number / Subject name / Subject code / Specified Semester / Student Roll number etc. shall be specifically
written by students in the answer booklet as per the space provided or as per the answer sheet requirements
• There will be different sections in a question paper and students have to carefully read and write the answers accordingly
• If any Clarifications are there for a student, it shall be communicated only with the invigilator in the hall and with no one else
• No mobile phone, radio programmable calculator or any other communication equipment or media are to be taken into the
examination room. Failure or comply may lead to confiscation of the gadget.
• Students shall write their respective answers as advised under each sub section of the Question paper
• There will be no discussions or talks by any student during the course of examination and if the found is doing, the same will
be confirmed as malpractice and necessary formal actions will be initiated against the student
• Calculators or other Mathematical / Statistical tables as appropriate will be allowed for necessary / specified exams – Students
will be communicated regarding this by the concerned official before the exam
• There will be no writings or scribblings by a student on any Question paper. Invigilator has complete formal authority to take
any action against student, if found
• Decision by the invigilator and the Controller of Examinations will be final and formal, for all aspects concerning examinations
• There shall be no communication whatever between candidates during the examination. A candidate may attract the
attention of the invigilator by raising a hand.
• A breach of any of the foregoing regulation made for the conduct of university examinations may attract one or more of the
following sanctions:
- A reprimand
- Loss of marks
- Cancellation
- Withholding of results for a period
• In addition to Grade Z shall be awarded whenever it is established that a candidate to gain an unfair advantage in an
examination. Further sanction may include: - Being barred from university examinations
- Suspension from university
- Expulsion from university
Section A [Multiple Choice]
Answer all questions from section A. Each question carries 1-mark. 10x1 = 10 Marks
1. Common-size financial statement is also called?
A. Horizontal Analysis
B. Vertical Analysis
C. Weighted Average
D. Specific Identification
2. Horizontal analysis also called trend analysis involves?
A. Analyzing financial statements over time
B. Breaking down financial statements
C. Comparing year to year
D. Both A and C
3. In common-size financial statements analysis, each income statement item is expressed as
percentage of what?
A. Total sales
B. Total assets
C. Total liabilities and stockholder’s equity
D. None of the above
4. How quickly can a company convert its asset to cash is known as?
A. Financial position
B. Liquidity
C. Financial leverage
D. Specific Identification
5. A firm’s ability to ability to pay off its debt on time is also known as?
A. Current Ratio
B. Working capital ratio
C. Time interest earned ratio
D. Specific Identification
6. A detailed plan of what management want to communicate about what they want to achieve
is known as what?
a) Budget
b) Cash Budget
c) Raw materials budget
d) Land mortgage
7. What are the two components of budgeting?
a) Planning and Control
b) Planning and Analyzing
c) Analyzing and Control
d) Management and Control
8. The process of holding managers responsible for only those items entrusted to them is
known as?
a) Budgeting
b) Responsibility Accounting
c) Planning
d) Inventory management
9. Budgeting period normally covers how long?
a) 6 months
b) 1 year
c) 2 years
d) None of the above
10. The process of getting every manager involved in the budgeting process is known as what?
a) Self-imposed budget
b) Receptibility accounting
c) Planning and controlling
d) Self-motivation
Section B [Fill in the blanks]
Answer all questions from section B. Each question carries 1-mark. 5x1 = 10 Marks
1. The first quarter of the budgeting process is subdivided into _______________, and
monthly budgets are developed.
2. The two components that must be present during any budgeting process is called
________________ and ___________________.
3. The master budget consist of a number of separate but __________________________
that formally lay out the company’s sales, productions, and financial goals.
4. Every budget is based on ___________________ and ______________________.
5. The sales budget is based on estimated ____________________________.
Section C [Long Answers]
Answer any 2 questions from section C. Each question carries 5-marks. 2x5 = 10 Marks
Section C. Five (5) Solving Problems. Two (2) Marks Each.
1. Zola Company manufactures and sells one product. The following information pertains to the
company’s first year of operations:
The company does not incur any variable
manufacturing overhead costs or variable selling and administrative expenses. During its first year of
operations, Zola produced 25,000 units and sold 20,000 units. The selling price of the company’s
product is $50 per unit.
Required: Assume the company uses super-variable costing: a. Compute the unit product cost for the
year.
2. Using the information from question 1, Prepare an income statement for the year.
3. Budgeted Sales for the following quarters are as follows:
1st Quarter 15,000
2nd Quarter 16,000
3rd Quarter 14,000
4th Quarter 13,000
Selling and administrative expenses per unit is $2.50. Fixed selling and administrative expenses
are:
Advertising $8,000, salaries $35,000 per quarter, and depreciation of $20,000. Insurance
expenses are $5,000 in the first and third quarters. Property taxes are $8,000 in the second
quarter.
Prepare selling and administrative expense budget.
4. Budgeted Direct Labor hours
1st Quarter 8,000
2nd Quarter 8,200
3rd Quarter 8,500
4th Quarter 7,800
Variable manufacturing overhead $3.25 per direct labor hour, fixed manufacturing overhead is
$48,000 per quarter. Depreciation $16,000 per quarter.
a. Prepare manufacturing overhead budget
5 Using the data from question 4, Compute the manufacturing overhead rate.
