BUS 475 Final Exam step-1
BUS 475 Final Exam step-1
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Date Created: 11/06/15
BUS 475 Final Exam QUESTIONS WITH ANSWERS 1) Which one of the following items is not generally used in preparing a statement of cash flows? A. Adjusted trial balance B. Comparative balance sheets C. Additional information D. Current income statement 2) One of Astro Company's activity cost pools is machine setups, with estimated overhead of $150,000. Astro produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers? A. $150,000 B. $60,000 C. $90,000 D. $75,000 3) Of the following companies, which one would not likely employ the specific identification method for inventory costing? A. Music store specializing in organ sales B. Antique shop C. Farm implement dealership D. Hardware store 4) Which one of the following is a product cost? A. Indirect labor B. Sales person’s salaries C. Office salaries D. Advertising costs 5) The conceptual framework developed by the Financial Accounting Standards Board __________. A. was approved by a vote of all accountants B. is viewed as providing a constitution for setting accounting standards for financial reporting C. are rules that all accountants must follow D. is legally binding on all accountants 6) What is the preparation of reports for each level of responsibility in the company’s organization chart called? A. Static reporting B. Exception reporting C. Responsibility reporting D. Master budgeting analysis 7) The cost principle requires that when assets are acquired, they be recorded at __________. A. appraisal value B. selling price C. exchange price paid D. list price 8) If a company reports a net loss, it __________. A. will not be able to make capital expenditures B. will not be able to get a loan C. may still have a net increase in cash D. will not be able to pay cash dividends 9) The major reporting standard for management accounts is __________. A. generally accepted accounting principles B. relevance to decisions C. the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management D. the SarbanesOxley Act of 2002 10) The primary purpose of the statement of cash flows is to __________. A. facilitate banking relationships B. provide information about the cash receipts and cash payments during a period C. provide information about the investing and financing activities during a period D. prove that revenues exceed expenses if there is a net income 11) Managerial accounting __________. A. places emphasis on specialpurpose information B. pertains to the entity as a whole and is highly aggregated C. is concerned with costing products D. is governed by generally accepted accounting principles 12) A welldesigned activitybased costing system starts with __________. A. analyzing the activities performed to manufacture a product B. assigning manufacturing overhead costs for each activity cost pool to products C. identifying the activitycost pools D. computing the activitybased overhead rate 13) Balance sheet accounts are considered to be __________. A. nominal accounts B. capital accounts C. temporary stockholders’ accounts D. permanent accounts 14) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead? A. Cost of landscaping the corporate office B. The western division’s vice president’s salary C. General corporate liability insurance D. Factory janitor 15) There are two types of markets in which firms face some competition yet are still able to have some control over the prices of their products. The names given to these market structures are __________. A. perfect competition and monopolistic competition B. duopoly and imperfect competition C. duopoly and triopoly D. monopolistic competition and oligopoly 16) Lekeisha's income exceeds her expenditures. Lekeisha is a __________. A. borrower who demands money from the financial system B. borrower who supplies money to the financial system C. saver who supplies money to the financial system D. saver who demands money from the financial system 17) A tax on an imported good is called a __________. A. supply tax B. trade tax C. tariff D. quota 18) Lucy starts her own psychiatric practice, but her expenditures to open the practice exceed her income. Lucy is a __________. A. borrower who demands money from the financial system B. borrower who supplies money to the financial system C. saver who supplies money to the financial system D. saver who demands money from the financial system 19) One characteristic of an oligopoly market structure is: A. firms in the industry have some degree of market power. B. firms in the industry are typically characterized by very diverse product lines. C. the actions of one seller have no impact on the profitability of other sellers. D. products typically sell at a price that reflects their marginal cost of production. 20) When, in a particular market, the law of demand and the law of supply both apply, the imposition of a binding price ceiling in that market causes quantity demanded to be __________. A. less than quantity supplied B. greater than quantity supplied C. double the quantity supplied D. equal to quantity supplied 21) When a firm sells a good or a service, the sale contributes to the nation’s income __________. A. only if the buyer of the good or service is a household or another firm B. only if the buyer of the good or service is a household C. We have to know whether the item being sold is a good or a service in order to answer the question D. whether the buyer of the good or a service is a household, another firm, or the government 22) The openeconomy macroeconomic model includes __________. A. only the market for foreigncurrency exchange B. only the market for loanable funds C. neither the market for loanable funds or the market for foreigncurrency exchange D. both the market for loanable funds and the market for foreigncurrency exchange 23) Most economists use the aggregate demand and aggregate supply model primarily to analyze __________. A. the effects of macroeconomic policy on the prices of individual goods B. shortrun fluctuations in the economy C. productivity and economic growth D. the longrun effects of international trade policies 24) In the market for foreigncurrency exchange in the open economy macroeconomic model, the amount of net capital outflow represents the quantity of dollars __________. A. supplied for the purpose of buying assets abroad B. supplied for the purpose of selling assets domestically C. demanded for the purpose of importing foreign goods and services D. demanded for the purpose of buying U.S. net exports of goods and services 25) Which of the following is not correct? A. A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth. B. The U.S. debt perperson is large compared with average lifetime income. C. Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so. D. In 2005, the U.S. government had a deficit. 26) The Federal Reserve will tend to tighten monetary policy when __________. A. interest rates are rising too rapidly B. the growth rate of real GDP is quite sluggish C. it thinks the unemployment rate is too high D. it thinks inflation is too high today, or will become too high in the future 27) Which of the following statements about GDP is correct? A. Nominal GDP values production at current prices, whereas real GDP values production at constant prices. B. Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process. C. Nominal GDP values production at constant prices, whereas real GDP values production at current prices. D. Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production. 28) The most dominant areas in the global economy include: A. North America, Western Europe and Asia B. North America, Asia and Africa C. North America, Mexico and Asia D. Western Europe, Asia and Africa E. North America, South America and Western Europe 29) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is: A. Diversity B. Recruiting C. Employment D. Managerial ethics E. Selection 30) A leader is: A. Someone with authority over others B. Someone who influences others to attain goals C. The top level manager in a firm or business D. Someone wellrespected by others E. A strategic level manager 31) Teams that operate separately from the regular work structure and exist temporarily are known as: A. Management teams B. Selfmanaged teams C. Parallel teams D. Transnational teams E. Selfdesigning teams 32) __________ is the process of working with people and resources to accomplish organizational goals. A. Supervising B. Decision making C. Management D. Controlling E. Planning 33) An organization that is managed aggressively and has growth and high profits as primary objectives may be considered a(n): A. Online Business B. Entrepreneurship venture C. Large corporation D. Small business E. Multinational corporation 34) A manager's ability to stimulate people to be high performers is referred to as: A. Supervising B. Controlling C. Organizing D. Leading E. Planning 35) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is: A. Customerbased integration B. Computerintegrated manufacturing (CIM) C. Justintime control (JIT) D. ISO 9000 E. Total quality management 36) Having individuals actually do the job they are applying for as a test to see if they can do it is __________. A. a formal means of screening candidates B. an approach with high reliability C. an approach with high face validity D. an informal means of screening candidates E. an approach with low reliability 37) The basic components of an effective sexual harassment policy include the following EXCEPT: A. To act immediately when employees complain of sexual harassment B. To develop an organization wide policy on sexual harassment C. To establish a means for ongoing training D. To establish a performance appraisal system E. To establish a formal complaint procedure 38) The best way for an employer to find out if a potential employee can do a job is by __________. A. administering an IQ test B. using the interview process C. using a performance simulation test D. using a written test E. having them spend a day in the office 39) As related to managing of human resources, diversity refers to: A. Differences in pay methods (such as hourly, salaried, overtime, hazardpay, commissioned, etc.) B. Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.) C. Differences in retention strategies (such as training, hiring, incentives, etc) D. Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.) E. Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.) 40) One of the most important contributors to total quality management has been the introduction of statistical tools to analyze the causes of product defects in an approach called: A. Mechanistic B. Six Sigma Quality C. Organic D. Total quality integration E. ISO 9000 41) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true? A. Successful entrepreneurs take very careful, calculated risks B. Anyone can start a business C. All entrepreneurs need venture capital in order to get started D. Entrepreneurs are their own bosses and completely independent E. Money should not be considered a startup ingredient 42) Jolly Blue Giant Health Insurance (JBGHI) is concerned about rising lab test costs and would like to know what proportion of the positive lab tests for prostate cancer are actually proven correct through subsequent biopsy. JBGHI demands a sample large enough to ensure an error of ± 2% with 90% confidence. What is the necessary sample size? A. 1,692 B. 609 C. 2,401 D. 1,604 43) In a righttail test, a statistician came up with a z test statistic of 1.469. What is the pvalue? A. .0708 B. .0301 C. .4292 D. .0874 44) Twelve randomlychosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18. For this sample, the median is _____. A. 3.5 B. 3 C. 2.5 D. 2 45) Twelve randomlychosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18. For this sample, the standard deviation is approximately _____. A. 3.75 B. 4.55 C. 4.75 D. 3.03 46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income. Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with Y = number of robberies in each city (thousands of robberies) and X = size of police force in each city (thousands of police)? A. Autocorrelation. B. High R2 (due to city size). C. No correlation. D. Positive slope (due to city size). 47) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours. In determining the pvalue for reporting the study's findings, which of the following is true? A. The pvalue is less than .05. B. The pvalue is equal to .05. C. The pvalue cannot be determined without specifying . D. The pvalue is greater than .05. 48) In an activityonnode [AON] network, the nodes represent ____________, whereas the arcs represent ____________. A. precedence relationships; time B. events; activities C. activities; time D. activities; precedence relationships 49) Theoretically, service capacity must exceed demand, lest queues become infinitely long. If capacity does not exceed demand, what is likely to happen? A. All of these B. Servers will eliminate timeconsuming portions of their jobs, thereby increasing capacity. C. Customers will renege or balk, thereby reducing demand. D. Servers will decrease time spent per customer, thereby increasing capacity. 50) Queuing models use an A/B/C notation. What do these variables represent? A. minimum time between arrivals/minimum allowable service time/minimum number of parallel servers B. maximum time between arrivals/maximum allowable service time/maximum number of parallel servers C. distribution of time between arrivals/distribution of service times/number of parallel servers D. average time between arrivals/average service time/number of parallel servers 51) In a network diagram, an activity: A. must always have a single, precise estimate for the time duration. B. should always be something the company has had experience with. C. is the largest unit of work effort consuming both time and resources that a project manager can schedule and control. D. is the smallest unit of work effort consuming both time and resources that a project manager can schedule and control.
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