GBMG– TEST 1 – October.

2021

YOU HAVE THE FULL CLASS TIME TO FINISH YOUR TEST, I WILL CUT THE SUBMISSIONS AT
9:30 AM TORONTO TIME.
It says different so time zones can be accommodated. This will NOT be
accepted as an excuse for late submission.
Answer directly on the test paper. UPLOAD ONLY IN WORD.
You can access any materials we used.
YOU NEED TO WORK LOGGED IN……………. AND INSIDE THE BREAK-OUT ROOMS.
You CANNOT work with WHATS APP. You have to answer me if I enter your
room which I do randomly
BE CLEAR AND CONCISE – DO NOT WRITE THE HISTORY OF INDIA FOR 2 MARKS. 2 MARKS OR 3 –
DOES NOT NECESSARILY MEAN 2 POINT OR 3. CAN MEAN ONE – CAN MEAN 6 – SO YOU
HAVE TO GIVE THE CORRECT ANSWERS AND BE SURE!! Any Grammarly or Spinbot or
anything like that – ZERO!!! I do not want to read nonsense….

Name _________________________________________________ID________________

_____________________________________________________________________________________

1. Bob is studying Managerial Accounting and asked his friend Sue to explain its focus. Aren’t we
just going to learn more about balance sheets and income statements ….an extension of the
financial accounting course I took already? (3 Marks)

2. Sandra’s Super Medicinal Innovations is working on medicines for the Corana Virus and other
life saving medicinal products. She has just hired the best minds in the industry to beat out
the competition and has obtained financing from Venture Capitalists. She should go with a
centralized or decentralized structure? Why? (4 Marks)
 3. For each item listed, state whether a job order costing system or process costing system
would be best. (.5 each) 3.5 marks
A. television repair
B. cell phone charge cords
C. glassware with company logo
D. dog food
E. golf balls
F. hotel signs to welcome guests
G. highlighters and pens

4. Sandra’s High Fashions manufactures clothing. For each item listed, identify whether it is a
product cost, a period cost, or not an expense. .5 each (3.5 marks)
A. pins to keep materials together while garment is being manufactured
B. real estate taxes on store
C. advertising expense
D. product inspector wages
E. shirts for sale
F. Chief Financial Officer salary
G. cost of goods sold
5. Identify the type of responsibility center (revenue center, cost center, profit center, or
investment center) for each of the following situations. .5 Each
(3.5 marks)
A. the accounting department for Sandra’s High Fashions
B. the Best Buy in Brambton
C. the reservation department of Air Canada
D. the sales department of Sandra’s Yachts
E. the Home Hardware store in Scarborough
F. The Hershey Company
G. Procter and Gamble
H. the shoe department in the Bay in Toronto

5. Sandra’s Sisters and Bob’s Brothers compete in the same industry and in all respects their products
are virtually identical. However, most of Sandra’s costs are fixed while Bob’s costs are primarily
variable. If sales increase for both companies, which will realize the greatest increase in profits?
Why? (2 Marks)
6. The statement of changes in equity tells (shows) : (1 Marks)

7. Which is the better buy (shares on the market) Sandra’s Pizza or Dominos Pizza and why (1.5
Marks)