CPA BAR: Cost accounting, budgeting and capital decisions
Blueprint I.A.3, I.B.1–I.B.3 · Area I, Business Analysis · 40–50% of BAR
Ten BAR questions on cost accounting, budgeting and capital decisions, untimed, with a reason for every answer option.
Or take the full BAR mock examFor the same project ($100,000 cost, $30,000 per year for five years), what is the payback period?
Cost accounting, budgeting and capital decisions on CPA BAR
This topic covers managerial and cost accounting (cost-volume-profit, costing systems, variances, relevant costs) and prospective analysis: budgets and forecasts, capital structure and cost of capital, and investment decisions.
- Blueprint groups
- I.A.3, I.B.1–I.B.3
- Share of the section
- Area I, Business Analysis: 40–50%
- Our drill
- 10 questions from 14 on this topic, untimed, with a reason for every option; one free attempt, unlimited with a pass
What to know
- Breakeven units = fixed costs ÷ contribution margin per unit; add the target profit to fixed costs for target-profit volume.
- When production exceeds sales, absorption costing income exceeds variable costing income by the fixed overhead deferred in inventory.
- Price variance = (actual price − standard price) × actual quantity; efficiency variance = (actual quantity − standard quantity allowed) × standard price.
- Only avoidable costs are relevant in make-or-buy decisions; allocated fixed costs that continue either way are not.
- WACC weights the after-tax cost of debt and the cost of equity by market values; CAPM gives the cost of equity as rf + β(Rm − rf).
- NPV discounts all cash flows at the required return; when NPV and IRR rank mutually exclusive projects differently, choose the higher NPV.
Test yourself on cost accounting, budgeting and capital decisions
Ten BAR questions on cost accounting, budgeting and capital decisions, untimed, with a reason for every answer option.
Or take the full BAR mock examCommon questions
How much of the BAR section is cost accounting, budgeting and capital decisions?
It sits in Blueprint Area I (I.A.3, I.B.1–I.B.3). The AICPA weights whole areas, not single topics; see the area’s range on the BAR page. Our 50-question mock draws each area at the middle of its range.
Are these real BAR questions?
No. The AICPA does not release live exam questions. These are original practice questions written to the published 2027 CPA Exam Blueprints, with a reason for every answer option and the standard or code section behind the key.
More BAR topics
- Financial statement, non-GAAP and risk analysisdrill
- Goodwill, software, R&D, revenue, stock compensation and business combinationsdrill
- Derivatives, hedging, leases and public company reportingdrill
- State and local governmentsdrill
BAR full mock exam: 4 hours, 5 testletsBAR task-based simulations
Blueprint and exam facts checked November 2026: AICPA: Learn what is tested on the CPA Exam (Blueprints effective January 1, 2027) · AICPA: CPA Exam score release and testing windows · NASBA: CPA Exam FAQ · Virginia Board of Accountancy: CPA Exam fees.
Original independent practice questions written to the AICPA CPA Exam Blueprints. Not affiliated with or endorsed by the AICPA or NASBA.