BUKIDNON STATE UNIVERSITY

Malaybalay City

College of Business
GRADUATE SCHOOL DEPARTMENT

MASTER IN MANAGEMENT
Major in Business Management
Managerial Accounting and Control
MM 204
Final Exam 2nd Sem SY 2018 – 2019
QUESTIONNAIRE

General Instructions:
1. Read the instruction in this questionnaire before you answer.
2. Download the Answer Sheet given in the next pages.
3. Write your name, test permit number, and the date in the answer sheet/s.
4. Write page number in your answer sheets.
5. Use MS Word in A4 size.
6. Upload your answers in my email ad: nycnesycip@yahoo.com
7. Monitor your emails for my acknowledgement of your final exam submission.
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FINAL EXAMINATION QUESTIONS: (100 points)

1. Although absorption costing is used for external reporting, managers often prefer to
use an alternative costing approach for internal reporting purposes called variable
costing. What is variable costing, and how does it compare to absorption costing?
Why do some organizations use variable costing?

2. Distinguish briefly among a cost center, a profit center and an investment center.
Explain why a transfer price is inappropriate when the center producing the product
is evaluated as a profit center.

3. A March, 2018, BusinessWeek article by Virginia Munger Kahn discusses the

importance of cash budgets for all types of businesses and individuals. The following
eight steps to cash flow control were identified in the article:

1. Establish a monthly cash flow budget. Determine the amount you need to achieve
your business and personal financial goals, including enough to pay taxes and
fund your retirement.
2. Compare your targets with your actual cash inflows and outflows at the end of
every month and make necessary adjustments.
3. Review your monthly or quarterly cash flows results with your accountant.
4. Use accounting software—the simplest one that will work for your business—to
automate the process.
5. Ask your accountant or financial planner to project your quarterly tax liability.
Don’t wait until year-end to find out what you owe, or you may find you have
already spent the money.
6. Set aside cash each month to pay your taxes on time.
7. Make quarterly contributions to a retirement account.
8. Establish a line of credit with a bank, or investigate other short-term financing
9. Sources, well before you think you’ll need the extra cash.

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 Instructions

a. Assume for item number 2 that a business’s actual cash flows are not enough to
achieve its business goals and some necessary adjustments must be made. Name
at least four adjustment procedures that businesses can use to equalize cash flows.
b. Write a short paragraph discussing how cash budgeting can be critical for the
ongoing success of a business or individual.

4. As discussed in a January, 2018, Business Week article,” The future of Outsourcing,”

authors Pete Engardio, Michael Arndt, and Dean Foust note that globalization has
created an upheaval in the direct labor standard-setting process. The article identifies
the impact of outsourcing on both labor rates and efficiency. For example, by
outsourcing back-office jobs to Mexico and India, Penske Truck Leasing has realized
$ 15 million in direct labor cost savings and significant gains in efficiency and
customer service. Other manufacturers and technology companies also are using
global talent pools to get products to market sooner and at lower costs. However,
there are many who remain cautious about these outsourcing strategies. Critics point
out that managers lack experience and knowledge when it comes to managing “
virtual” employees that they cannot even see.

REQUIRED:

Discuss the ethical implications of virtual global corporations. In particular, consider

how a company can manage the ethical climate of an organization when back- office
jobs are located in other countries.

5. What is cost control? What is cost audit? What are the duties of a cost controller?
What are the duties of cost auditor?

-end of exam-
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ANSWER SHEET is given in the next page(s) …………………………………………..

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 BUKIDNON STATE UNIVERSITY
Malaybalay City

College of Business
GRADUATE SCHOOL DEPARTMENT

MASTER IN MANAGEMENT
Major in Business Management
Managerial Accounting and Control
MM 204
Final Exam 2nd Sem SY 2018 – 2019
ANSWER SHEET
Test Permit No. __________________
Name____________________________ Grade_____
Date__________________ Score_____

Write your answers below:

1.
2.
Etc.

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