BUS105 Exam Dumps - Saylor Direct Credit Courses Questions and Answers

Comprehensive and Detailed Explanation:

Management by Exception is a management style that focuses attention and resources on areas where actual results deviate significantly from expected results.

According to Saylor Academy BUS105:

“Management by exception is a principle where managers focus only on significant variances between actual and budgeted results.”

Only Option D reflects a significant unfavorable variance that exceeds a predefined threshold—this is exactly the kind of situation where management by exception would trigger action.

Answer: D

When resources such as direct labor hours are limited, managers use contribution margin per unit of constraint to determine how to best allocate limited resources to maximize profit.

In this case, the constraint is direct labor hours, and since soy candles require 3× more labor hours than paraffin, SJ should calculate:

Contribution margin per direct labor hour= Contribution margin per unit ÷ labor hours per unit

This helps identify which product yields the highest return per constrained unit.

A credit balance in the manufacturing overhead account means overhead was overapplied (i.e., more overhead was applied than actually incurred).

If the balance is immaterial, it should be closed directly to COGS.

Journal Entry:

Debit Manufacturing Overhead $1,250

Credit Cost of Goods Sold $1,250

→ This decreases COGS because more overhead was applied than used.

Answer: A

The decision about upgrading an ERP system must be based on operational needs, such as system capabilities, compatibility, and business requirements.

Out of the options, only C is directly related to system functionality and infrastructure—cloud-based storage may be essential in a modern ERP solution.

Other options relate to external events or general trends not directly relevant to an internal ERP evaluation.

Comprehensive and Detailed Explanation:

The key difference between absorption and variable costing is how fixed manufacturing overhead is treated:

Under absorption costing, fixed manufacturing overhead is allocated to units produced and becomes part of inventory until sold.

Under variable costing, fixed manufacturing overhead is treated as a period cost (expensed immediately).

Therefore, when:

→ All units produced are sold and no inventory remains or is carried over,

→ There’s no difference between how costs are treated under either method.

Option B matches this condition exactly—no beginning inventory, and all produced units are sold.

Answer: B