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