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.

BUS105 Practice Questions with Explained Answers

5 Free Questions · Last reviewed: September 16, 2026 · Prepared & Reviewed by the ValidExamDumps Editorial Team

Question 1 Domain 1Managerial Accounting

Wycliff Corp. had an immaterial credit balance of $1,250 in the manufacturing overhead account after $21,750 was applied to the WIP inventory account. To close the manufacturing overhead account at the end of the period, assuming no further transactions took place, what should Wycliff do?

ADebit manufacturing overhead $1,250; credit cost of goods sold $1,250

BDebit cost of goods sold $1,250; credit manufacturing overhead $1,250

CDebit manufacturing overhead $20,500; credit cost of goods sold $20,500

DDebit cost of goods sold $20,500; credit manufacturing overhead $20,500

Correct Answer: B

Explanation This question tests your understanding of the ethical responsibilities of managerial accountants. The manager's request to alter financial results violates basic accounting ethics and potentially constitutes fraud. The correct approach is to first check your company's established policies for handling ethical conflicts. Most organizations have formal procedures for addressing these situations, which might involve reporting to an ethics committee, compliance officer, or audit committee. Following proper channels protects both you and the organization. Simply refusing outright or agreeing to the request both skip the important step of understanding your company's formal process.

Question 2 Domain 3Process Costing

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

ABy showing assets, liabilities, and owners' equity at a point in time

BBy showing revenues and expenses using the accrual basis of accounting

CBy showing events that changed the stockholder's equity over the course of the accounting period

DBy showing the change from the beginning cash balance to the ending cash balance on the balance sheet

Correct Answer: D

Explanation Process costing uses equivalent units to allocate costs across large volumes of identical products moving through production stages. In this problem about a paint manufacturer's blending department, you need to calculate the cost per equivalent unit for direct labor by dividing total labor costs by total equivalent units produced. Then multiply that per-unit cost by the equivalent units in ending work in process inventory to determine how much of the total cost belongs to unfinished units. The answer of $14 per unit times 500 equivalent units equals the $7,000 assigned to ending inventory, which properly reflects the stage of completion for those partially finished units.

Question 3 Domain 8Variance Analysis

SJ Candles should expect the absorption costing and variable costing methods to result in the same 4th quarter operating profit when which of the following is true?

AThey sold all remaining 3rd quarter inventory in 4th quarter and produced zero candles in 4th quarter

BThey started the 4th quarter with no inventory and every candle that was produced in the 4th quarter also sold

CThey started the 4th quarter with no inventory and sold 80% of the candles that were produced in the 4th quarter

DTheir 4th quarter sales included every candle produced in the 4th quarter as well as a few that remained in inventory from the 3rd quarter

Correct Answer: B

Explanation Management by exception means managers focus their attention on significant deviations from plan rather than routine results. This approach saves time by concentrating on items that truly matter. A $26,000 unfavorable labor rate variance that exceeds the company's investigation threshold is exactly the type of situation triggering management attention. The variance is large enough and worse than expected, so it warrants investigation. Smaller variances within normal range don't demand managerial attention, nor do favorable results that meet expectations. The dollar amount and percentage together signal that something went wrong and needs explanation.

Question 4 Domain 2Job Costing

Valley Manufacturing uses a process costing system. Which of the following journal entries would correctly record $3,180 of manufacturing overhead to the assembly department?

AOption A

BOption B

COption C

DOption D

Correct Answer: B

Question 5 Domain 7Budgets

Which of the following statements is a true statement about flexible budgets?

AThe actual number of units sold is irrelevant to a flexible budget

BCost variance analysis is an integral part of preparing a flexible budget

CSelling and administrative expenses are reported in the flexible budget

DThe flexible budget is prepared before the master budget to assist with planning

Correct Answer: C

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 question from this domain above: Q1

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: Q4

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: Q2

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 6: 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 7: 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.

Sample question from this domain above: Q5

Domain 8: 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 question from this domain above: Q3

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