Saylor BUS105 Practice Exam Questions & Answers

7 Free Questions Last reviewed October 28, 2026 Prepared & Reviewed by the ValidExamDumps Editorial Team

50 Practice Questions (Our Bank)
120 minutes Exam Duration
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Exam Facts

Saylor BUS105 Exam Details

Key details for this exam, checked against the published exam outline

Exam Code
BUS105
Full Name
BUS105: Managerial Accounting Exam
Issuing Body
Saylor Certifications
Question Format (Our Bank)
Multiple Choice
Delivery
Online proctored
Eligibility
None
Full Question Set
50 questions Get All Questions
Practice Questions

Free BUS105 Practice Questions

Each question shows the correct answer and an explanation of why it is right

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ValidExamDumps Editorial Team Every question and its answer is checked by our BUS105 exam preparation team, who also write the explanation shown with each one. How we research and review these pages

Question 1 Domain 1 Managerial Accounting

Use the following relevant data to assign costs to units transferred out and units in ending WIP inventory. Total Units Accounted For:

Question 1 exhibit

Cost per Equivalent Unit:

Question 1 exhibit

What is the total cost of production?

Correct Answer C
Explanation An HR Manager's salary is a period cost, not a product cost. It does not directly relate to manufacturing specific jobs or products. General and administrative costs are indirect costs that support the overall organization rather than specific production activities. These costs are expensed in the period incurred rather than being allocated to inventory or job costs.

Question 2 Domain 1 Managerial Accounting

How does a statement of cash flows provide value for a company?

Correct Answer D
Explanation This question tests ethical judgment in managerial accounting. When faced with pressure to manipulate financial results, the appropriate first step is to check company policy on ethical conflicts. This protects you professionally and gives the organization a chance to address the issue through proper channels. Falsifying records is never acceptable, and personal ethics cannot override accounting standards and regulations.

Question 3 Domain 9 Variance Analysis

What would the salary of a manufacturing firm's HR Manager be classified as?

Correct Answer D
Explanation This variance analysis question requires comparing budgeted overhead costs to actual costs for indirect materials. A favorable spending variance occurs when actual costs are lower than budgeted costs. The $500 figure represents the difference between what was budgeted to spend and what was actually spent on indirect materials. This is a positive outcome for the company's cost management.

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Question 4 Domain 10 Performance Evaluation

This is select financial statement data for Binks Corporation. What is the inventory turnover ratio for year 2?

Question 4 exhibit

Correct Answer C
Explanation A restaurant manager in a profit center is responsible for controlling both revenue generation and costs to achieve profit targets. Unlike a cost center manager who only controls costs, a profit center manager is evaluated on the bottom line results. This comprehensive evaluation of revenues, costs, and profits is the standard way to assess performance in operations where the manager influences both income and expenses.

Question 5 Domain 2 Job Costing

SJ Candles manufactures paraffin and soy candles. They have fixed costs of $120,000 and a constant level of sales. Using this sales data, what is the total number of candles that must be sold in order to break-even?

Question 5 exhibit

Correct Answer C
Explanation This job costing scenario involves tracking manufacturing costs and closing overhead. Gross profit is calculated as sales revenue minus cost of goods sold. The $75 gross profit comes from the $150 sale price reduced by the job's costs. When immaterial overhead is closed out, it's typically allocated to cost of goods sold, which increases the cost and reduces gross profit by that $1 amount.

Question 6 Domain 9 Variance Analysis

Managers have several different methods from which to choose when evaluating long-term investments. Which method disregards the time value of money as a factor?

Correct Answer A
Explanation Materials quantity variance measures the cost impact of using more or fewer pounds than the standard allowed. The company produced 800,000 boxes and should have used 1,600,000 pounds at standard (800,000 times 2 pounds each). They actually used 1,580,000 pounds, which is 20,000 pounds less than standard. This 20,000 pound savings at $3.00 per pound equals a $60,000 favorable variance since using less material than expected is favorable.

Question 7 Domain 3 Process Costing

A potential lender is investigating Wyatt Corporation's leverage. This is select balance sheet data for Wyatt Corporation as of December 31. What is the company's debt to assets ratio?

Question 7 exhibit

Correct Answer A
Explanation Process costing is used when a company manufactures identical or similar products in continuous batches through multiple production stages. Bethel Bakery maintains separate work-in-process accounts for each department in the production flow. This departmental tracking is characteristic of process costing, where costs are accumulated by department and then averaged across all units produced rather than being assigned to individual jobs.
Study Guide

What the Saylor BUS105 Exam Covers

Exam domains verified against the Official Saylor BUS105 exam guide, last checked October 2026.

Domain 1 Managerial Accounting

Covers the role of managerial accounting within organizations and how it supports management decision-making. This foundational section establishes terminology and concepts used throughout the exam.

Sample questions from this domain above Q1Q2

Domain 2 Job Costing

Covers how costs are assigned to specific jobs or products. Job costing systems track direct materials, direct labor, and overhead to determine the true cost of production.

Sample question from this domain above Q5

Domain 3 Process Costing

Covers process costing systems used in mass production environments where identical units flow through multiple production stages. This system averages costs across completed units.

Sample question from this domain above Q7

Domain 4 Cost Behavior Patterns

Covers how different costs behave relative to changes in activity levels, including fixed, variable, and mixed costs. Understanding cost behavior is essential for planning, budgeting, and decision-making.

Domain 5 Cost Behavior Patterns

Covers how different costs behave relative to changes in activity levels, including fixed, variable, and mixed costs. Understanding cost behavior is essential for planning, budgeting, and decision-making.

Domain 6 Cost-Volume-Profit Analysis

Covers the relationship between cost, volume, and profit to help managers understand how changes in sales volume affect profitability. This analysis supports pricing and production decisions.

Domain 7 Using Differential Analysis to Make Decisions

Covers how to use relevant cost analysis for decision-making in situations such as accepting special orders or discontinuing product lines. Differential analysis focuses on costs and revenues that change with each decision.

Domain 8 Budgets

Covers the development and use of various budgets including operating budgets, capital budgets, and cash flow budgets. Budgets serve as both planning and control tools for organizations.

Domain 9 Variance Analysis

Covers the comparison of budgeted versus actual results to identify where performance deviates from plans. Variance analysis helps managers understand why differences occurred and where to focus attention.

Sample questions from this domain above Q3Q6

Domain 10 Performance Evaluation

Covers the use of accounting data to assess departmental and managerial performance. Performance metrics include profitability, return on investment, and divisional contribution margins.

Sample question from this domain above Q4

Domain 11 Statement of Cash Flows

Covers the preparation and interpretation of cash flow statements using the direct or indirect method. This statement shows how operating, investing, and financing activities affect cash balances.

Domain 12 Trends and Ratio

This section of the exam measures the skills of accounting analysts and covers the use of trend analysis and financial ratios.

FAQ

BUS105 Exam FAQ

Common questions about the exam itself

What is the passing score for the BUS105 Managerial Accounting Exam?
Saylor's official documentation states that you earn your course certificate by passing the final exam with a score of 70% or higher. This 70% threshold applies to the BUS105 Certificate Final Exam.
How much does the BUS105 exam cost?
The exam costs USD 5 per attempt through SmarterProctoring, Saylor's proctoring service. This fee applies each time you sit the exam.
Can I retake the BUS105 exam if I don't pass?
Yes, you can attempt the exam up to three times total. There is a mandatory 14-day wait period between each attempt.
What background do I need before taking BUS105?
There are no formal prerequisites for BUS105. You should have basic accounting knowledge and comfort with business terminology, though the course starts with foundational definitions.
How is the BUS105 exam delivered?
The exam is online and proctored. You take it from home or any quiet location with a webcam and valid ID, monitored by SmarterProctoring.
How long does it take to prepare for BUS105?
Most students complete the course and exam in 7 to 17 days with focused effort, though the actual timeline depends on your background in accounting and available study time. The exam itself takes 120 minutes.
What job roles does BUS105 prepare me for?
BUS105 prepares you for roles in accounting analysis, cost accounting, management accounting, and financial planning and analysis. The skills are relevant to any organization that needs to understand and manage costs.
Does the BUS105 certificate expire?
Course completion certificates from Saylor do not expire. However, if you are pursuing college credit through Saylor Direct Credit, those credit recommendations have a validity window that varies based on the institution accepting them.
What is the difference between the BUS105 Certificate Final Exam and the Saylor Direct Credit exam?
BUS105 offers both a free Certificate Final Exam for course completion and a separate Saylor Direct Credit exam if you want college credit. You only need to take the Certificate exam to earn the course certificate at no cost.
Which topic on BUS105 do candidates struggle with most?
Cost accounting methods including job costing and process costing, as well as cost-volume-profit analysis, typically account for a significant portion of the exam. These topics require understanding both definitions and practical calculations.