Saylor Direct Credit Courses BUS105 Dumps PDF

Internal audit reports related to internal controls are typically reviewed by senior management because they involve organization-wide compliance, governance, and financial integrity.

As per Saylor Academy BUS105 – Unit 13: Ethics and Corporate Governance:

“The chief financial officer (CFO) is responsible for financial planning, risk management, and ensuring proper internal controls. The CFO often reviews internal audit reports and communicates results to the board.”

A payroll clerk (A) and plant manager (B) would be responsible for their functional areas but would not be the main recipient of an internal audit committee report.

A managerial accountant (D) may be involved in preparing internal data but does not typically oversee internal control reporting.

Therefore:

Answer: C

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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

Comprehensive and Detailed Explanation:

Managerial accounting focuses on internal decision-making tools, such as budgeting, forecasting, and performance evaluation. A capital budget is a tool for planning long-term investments and is a key example of managerial accounting.

The other options (balance sheet, cash flow, liabilities) are financial accounting tools used for external reporting.

Answer: A

Bethel Bakery uses multiple departments (blending, cutting, baking, decorating, packaging) to produce a standardized product—frosted sugar cookies—in a continuous, repetitive flow. This is a textbook example of a business that uses process costing.

According to Saylor Academy BUS105:

“Process costing is used when the production process is continuous, and the units of output are indistinguishable from each other. Separate work-in-process (WIP) accounts are typically maintained for each department.”

Let’s evaluate the options:

A. Job costing is used for customized or unique products (e.g., custom furniture).

B. Process costing is used for mass-produced items through multiple production departments.✅

C. Departmental costing refers to applying overhead by department, not necessarily tied to production cost method.

D. Activity-based costing focuses on cost allocation based on activities but does not define how WIP is tracked across departments.

Answer: B