BUS 475 FINAL EXAM 100 Questions with ANSWERS 4 Set
BUS 475 FINAL EXAM 100 Questions with ANSWERS 4 Set
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Date Created: 11/06/15
1 The cost principle requires that when assets are acquired they be recorded at A list price B selling price C exchange price paid D appraisal value 2 quotGenerally acceptedquot in the phrase generally accepted accounting principles means that the principles have been approved for use by the managements of business firms have been approved by the Internal Revenue Service have substantial authoritative support are proven theories of accounting PCP 3 The standards and rules that are recognized as a general guide for nancial reporting are called standards of financial reporting operating guidelines generally accepted accounting principles generally accepted accounting standards UCPquot 4 Sam39s Used Cars uses the speci c identi cation method of costing inventory During March Sam purchased three cars for 6000 7500 and 9750 respectively During March two cars are sold for 9000 each Sam determines that at March 31 the 9750 car is still on hand What is Sam s gross pro t for March A 8250 B 750 C 4 500 D 5250 5 Hess Inc sells a single product with a contribution margin of 12 per unit and xed costs of 74400 and sales for the current year of 100000 How much is Hess s break even point 2133 units 6200 units 25600 4600 units 00 6 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 The western division s Vice president s salary B Cost of landscaping the corporate office C General corporate liability insurance D Factorv ianitor 7 What is the preparation of reports for each level of responsibility in the company s organization chart called A Master budgeting analysis B Exception reporting C Responsibility reporting D Static reporting 8 Disney s variable costs are 30 of sales The company is contemplating an advertising campaign that will cost 22000 If sales are expected to increase 40000 by how much will the company39s net income increase A 6 000 B 12000 C 28000 D 18000 9 The cost of an asset and its fair market value are never the same irrelevant when the asset is used by the business in its operations the same on the date of acquisition the same when the asset is sold PCP 10 Which one of the following is a product cost Indirect labor Sales person s salaries Advertising costs Office salaries POP 11 What exists when budgeted costs exceed actual results A A budgeting error B An unfavorable difference C An excess profit D A favorable difference 12 The income statement and balance sheet columns of Pine Company39s worksheet re ects the following totals Income Statement Balance Sheet Dr Cr Dr Cr Totals 58000 48000 34000 44000 Closing entries are necessary for permanent accounts only both permanent and temporary accounts permanent or real accounts only temporary accounts only POP 13 Managerial accounting is concerned with costing products pertains to the entity as a whole and is highly aggregated places emphasis on specialpurpose information is governed by generally accepted accounting principles PCP 14 H55 Company sells two products beer and wine Beer has a 10 percent profit margin and wine has a 12 percent profit margin Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin If other factors are equal which product should H55 push to customers Beer Selling either results in the same additional income for the company It should sell an equal quantity of both Wine POP 15 Lekeisha39s income exceeds her expenditures Lekeisha is a saver who demands money from the financial system borrower who demands money from the financial system borrower who supplies money to the financial system saver who supplies monev to the financial svstem POP 16 Maurice receives 100 as a birthday gift In deciding how to spend the money he narrows his options down to four choices Option A Option B Option C and Option D Each option costs 100 Finally he decides on Option B The opportunity cost of this decision is A the value to Maurice of the option he would have chosen had Option B not been available B 100 C 300 D the value to Maurice of Options A C and D combined 17 A production possibilities frontier will be a straight line if A the economy is producing efficiently B the economy is engaged in trade with at least one other economy C increasing the production of one good by X units entails no opportunity cost in terms of the other good D increasing the production of one good by x units entails a constant opportunity cost in terms of the other good 18 In economics the cost of something is what you give up to get it often impossible to quantify even in principle the dollar amount of obtaining it always measured in units of time given up to get it POP 19 A tax on an imported good is called a supply tax trade tax quota tariff wow 20 Which of the following statements about GDP is correct A GDP is to a nation s economy as household income is to a household B GDP increases if the total population increases C GDP measures two things at once the total income of everyone in the economy and the unemployment rate D Monev continuouslv ows from households to government and then back to households and GDP measures this ow of money 21 In computing GDP market prices are used to value final goods and services because A if market prices are out of line with how people value goods the government sets price ceilings and price oors B Market prices are not used in computing GDP C market prices re ect the values of goods and services D market prices do not change much over time so it is easy to make comparisons between years 22 Which of the following statements about GDP is correct A Nominal GDP values production at market prices whereas real GDP values production at the cost of the resources used in the production process B Nominal GDP consistently underestimates the value of production whereas real GDP consistently overestimates the value of production C Nominal GDP values production at current prices whereas real GDP values production at constant prices D Nominal GDP values production at constant prices whereas real GDP values production at current prices 23 Which of the following is not correct A The US debt perperson is large compared with average lifetime income B In 2005 the US government had a deficit C A potential cost of deficits is that they reduce national saving thereby reducing growth of the capital stock and output growth D Deficits give people the opportunity to consume at the eXpense of their children but they do not require them to do so 24 The part of the balance of payments account that lists all longterm ows of payments is called the balance of trade nancial and capital account government financial account current account 00 25 Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004 One of their contributions was to argue that if a central bank could convince people to expect zero in ation then the Fed would be tempted to raise output by increasing in ation This possibility is known as the sacrifice ratio dilemma the monetary policy reaction lag the time inconsistency of policy in ation targeting PCP 26 In general the longest lag for A scal policv is the time it takes to change policv while for monetary policv the longest lag is the time it takes for policy to affect aggregate demand B both fiscal and monetary policy is the time it takes for policy to affect aggregate demand C monetary policy is the time it takes to change policy while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand D both fiscal and monetary policy is the time it takes to change policy 27 Consider two items that might be included in GDP 1 The estimated rental value of owneroccupied housing and 2 purchases of newlyconstructed homes How are these two items accounted for when GDP is calculated A Only item 2 is included in GDP and it is included in the investment component B Item 1 is included in the consumption component while item 2 is included in the investment component C Item 1 is included in the investment component while item 2 is included in the consumption component D Both item 1 and item 2 are included in the consumption component of GDP 28 Managers will utilize skills with increasing frequency as they rise within an organization Professional Interpersonal and communication Technical Professional Conceptual and decision FUOPquot 29 Which of these represent skills that managers need Interpersonal quantitative and professional Technical interpersonal amp communication and conceptual amp decision making Professional technical and interpersonal amp communication Conceptual amp decision making professional and technical Interpersonal amp communication conceptual amp decision making and professional WUOF 30 Building a dynamic organization is another way of describing which function of management Staffing Organizing Leading Controlling Planning WUOF 31 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 Anyone can start a business B All entrepreneurs need venture capital in order to get started C Successful entrepreneurs take very careful calculated risks D Entrepreneurs are their own bosses and completely independent E Money should not be considered a start up ingredient 32 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 Diversitv Managerial ethics Recruiting Employment Selection EDGE 33 A manager39s ability to stimulate people to be high performers is referred to as A Planning B Supervising C Controlling D Organizing E Leading 34 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 bene t of both producers and consumers is Total quality management Customer based integration Computer integrated manufacturing CIM Just in time control JIT ISO 9000 FUOPquot 35 Japanese manufacturers39 kaizen continuous improvement programs enable them to maintain A A strategic alliance B A homogeneous workforce C Positive working relationships with all employees D A Learning advantage over their competition E Larger faster facilities 36 Listening to employee suggestions gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered Technical skills Conceptual Professional skills Interpersonalcommunication skills Diagnostic skills wpcwgt 37 The basic components of an effective sexual harassment policy include the following EXCEPT To develop an organization wide policy on sexual harassment To establish a means for ongoing training To act immediately when employees complain of sexual harassment To establish a performance appraisal system To establish a formal complaint procedure wpcwgt 38 Teams that operate separately from the regular work structure and exist temporarily are known as Management teams Transnational teams Self managed teams Parallel teams Self designing teams WPCF 39 The Aquatic Center Inc periodically reviews the goals of the company During the process The Aquatic Center managers analyze their current strategies as compared to their competitors determine goals that they will pursue and decide upon speci c actions for each area of the company to take in pursuit of these goals The Aquatic Center managers have been engaged in the management function of A Goal Coordination B Controlling C Organizing D Staffing E Planning 40 As related to managing of human resources diversity refers to A Differences in demographics such as age race gender disabilitv status lifestvle veteran status educational level etc B Differences in pay methods such as hourly salaried overtime hazard pay commissioned etc C Differences in employee benefit plans such as pensions insurance vacations memberships etc D Differences in retention strategies such as training hiring incentives etc E Differences in recruiting methods such as newspapers schools yers magazines agencies etc 41 is the process of working with people and resources to accomplish organizational goals Controlling Decision making Planning Supervising Management FUOPquot 42 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 B 35 C 25 D 2 43 Use the following table to answer question PS W is approximately A 40 B 30 C 12 D 58 44 Use the following table to answer question PM A is approximately A 50 B 625 C 125 D 25 45 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 378 hours with a standard deviation of 54 hours In determining the pvalue for reporting the study39s ndings which of the following is true A The p Value is equal to 05 B The pvalue is greater than 05 C The p Value cannot be determined without specifying D The p Value is less than 05 46 William used a sample of 68 US cities to estimate the relationship between Crime annual property crimes per 100000 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 US 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 High R2 due to city size Positive slope due to city size No correlation Autocorrelation 00 47 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 which measure of central tendency is least representative of the typical student A Midrange B Mean C Mode D Median 48 Likely reasons for inaccurate control limits would include which of the following A Process variation was not zero as expected B The engineering parameter for variance is unknown C There was insufficient preliminary sampling D The engineers were underpaid for their work 49 You are faced with a linear programming objective function of Max P 20X 30Y and constraints of 3X 4Y 24 Constraint A 5X Y 18 Constraint B You discover that the shadow price for Constraint A is 75 and the shadow price for Constraint B is 0 Which of these statements is TRUE A The most you would want to pay for an additional unit of A would be 750 B You can change quantities of X and Y at no cost for Constraint B C For every additional unit of the objective function you create the price of A rises by 750 D For every additional unit of the objective function you create you lose 0 units of B 50 A project has three paths A B C has a length of 25 days A D C has a length of 15 days Finally A E C has a length of 20 days Which one of the following statements is TRUE The expected duration of this project is 25 15 20 60 days A D C is the critical path The expected duration of this proiect is 25 davs A B C has the most slack PCP 51 Which one of the following statements concerning production and staffing plans is best A A master production schedule is a projected statement of income costs and profits B Aggregation can be performed along three dimensions product families labor and time C Production plans are based primarily on information from the master production plan D A staffing plan is the intermediate link between the business plan and the master production schedule 52 While glancing over the sensitivity report you note that the stitching labor has a shadow price of 10 and a lower limit of 24 hours with an upper limit of 36 hours If your original right hand value for stitching labor was 30 hours you know that A you would lose 80 if one of your workers missed an entire 8 hour shift B the next worker that offers to work an extra 8 hours should receive at least 80 C vou would be willing pay up to 60 for someone to work another 6 hours D you can send someone home 6 hours early and still pay them the 60 they would have earned while on the clock 53 The costs of delivering products in the channel are much higher than delivering products in the channel phvsical digital e commerce digital physical financial digital e commerce digital physical EDGE 54 When customers access a Web site and make purchases they generate A Tracking cookies B Web data C Information D Clickstream data E Hyperlink data 55 is the integration of economic social cultural and ecological facets of life enabled by information A regionalization B globalization C nationalization D business environment 56 Various organizations that promote fair and responsible use of information systems often develop a code of ethics responsibility charters a strategic plan a mission statement a goals outline mama 57 What is is not necessarily Illegal unethical Unethical legal Ethical illegal Unethical illegal Ethical legal WPCF 58 provides users with a view of what is happening where addresses why it is happening FUDGE Multidimensional data analysis structured query language Multidimensional data analysis neural networks Data mining multidimensional data analysis Data mining expert system Multidimensional data analysis data mining 59 Computer support is greatest for which of the following problems wpcwgt Semistructured and strategic planning Semistructured and management control Unstructured and operational control Structured and operational control Structured and management control 60 The management cockpit best exempli es which type of system A B C Expert system D E Group decision support system 61 A B Decision support system Functional area information system Digital dashboard is the efficient and effective execution of specific tasks Operational control Expertise C Management control D E Wisdom Strategic planning 62 Geocoding is WUOF accessing geographical information integrating maps with spatially oriented databases and other databases integrating organizational transactions with spatially oriented databases programming spatially oriented databases encrypting spatial information 63 At 8 compounded annually how long will it take 750 to double A B 48 months 65 years C 9 years D 12 years 64 Which of the following represents an attempt to measure the earnings of the firm s operations over a given time period A Cash ow statement B Balance sheet C Income statement D Quarterly statement 65 A machine costs 1000 has a threeyear life and has an estimated salvage value of 100 It will generate aftertax annual cash ows ACF of 600 a year starting next year If your required rate of return for the project is 10 what is the NPV of this investment Round your answerwer to the nearest 10 A 570 B 490 C 900 D 150 66 Disadvantages of using current liabilities as opposed to longterm debt include higher cash ow exposure greater risk of illiquiditv and uncertaintv of interest costs decreased risk of liquidity certainty of interest costs uncertainty of future liabilities WUOF 67 Petrified Forest Skin Care Inc pays an annual perpetual dividend of 170 per share If the stock is currently selling for 2125 per share what is the expected rate of return on this stock A 125 B 3613 C 80 D 136 68 Which of the following is most consistent with the hedging principle in working capital management Fixed assets should be financed with short term notes payable Inventory should be financed with preferred stock Accounts receivable should be financed with shortterm lines of credit Borrow on a oating rate basis to finance investments in permanent assets PCP 69 An increase in future value can be caused by an increase in the A original amount invested annual interest rate and number of compounding periods rate of return dividends paid starting value mp0 70 If the quote for a forward exchange contract is greater than the computed price the forward contract is at equilibrium undervalued a good buy overvalued POP 71 Your company is considering an investment in a project which would require an initial outlay of 300000 and produce expected cash ows in Years 1 through 5 of 87385 per year You have determined that the current aftertax cost of the firm s capital required rate of return for each source of financing is as follows Cost of debt 8 Cost of preferred stock 12 Cost of common stock 16 Longterm debt currently makes up 20 of the capital structure preferred stock 10 and common stock 70 What is the net present value of this project A 1568 B 871 C 1241 D 463 72 Suppose you determine that the NPV of a project is 1525855 What does that mean A The project 5 IRR would have to be less that the firm 5 discount rate B The project would add value to the firm C Under all conditions the project s payback would be less than the profitability index D In all cases investing in this project would be better than investing in a project that has an NPV of 850000 73 The common stockholders are most concerned with A the spread between the return generated on new investments and the investor 5 required rate of return B the size of the firm s beginning earnings per share C the risk of the investment D the percentage of pro ts retained 74 PepsiCo calculates unlevered betas for each peer group in order to GOP eliminate different financial risks eliminate competitive factors eliminate judgment factors eliminate different business risks 75 Which of the following best represents operating income 00 Income from discontinued operations Earnings before interest and taxes Income from capital gains Income after financing activities 76 In comparison to the buying of final consumers the purchasing of organizational buyers WUOF is even less predictable leans basicallv toward economv quality and dependabilitv is always emotional is strictly economic and not at all emotional is always based on competitive bids from multiple suppliers 77 The basic objective of the US marketdirected economic system is to FUOPquot achieve an annual growth rate of at least 10 percent provide each person with an equal share of the economic output make the most efficient use of the country39s resources minimize in ation satisfv consumer needs as thevthe consumerssee them 78 Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that EDGE GDP measures show people39s tendency to buy particular products income tends to be evenly distributed among consumers in most countries GDP estimates may not be very accurate for very different cultures and economies Other countries most likely don t use the US Dollar as their primary currency GDP measures show the degree of competition in a market 79 A firm39s quotmarketing mixquot decision areas would NOT include A Promotion B People C Price D Place E Product 80 is a marketing management aid which refers to how customers think about proposed andor present brands in a market Brand familiarity Positioning Market scanning Customer relationship management CRM Market segmentation WUOF 81 The quotfour Psquot of a marketing mix are Production Personnel Price and Physical Distribution Promotion Production Price and People Potential customers Product Price and Personal Selling Product Price Promotion and Profit Product Place Promotion and Price HUGE 82 When evaluating macromarketing A the evaluation is necessarily subjective B the best approach is to consider the profit generated by individual firms within the overall system C one must determine how ef ciently the society39s resources are used D one must consider the society 5 role in the marketing system E one must consider each individual firm39s role in the marketing system 83 A cluster analysis of the quottoothpaste marketquot would probably show that the broad product market can be served effectively with one marketing mix most consumers are mainly concerned about brightness of teeth factors such as taste price and quotseX appea quot are not important most consumers are concerned about cost different market segments seek different product bene ts FUOPquot 84 Clustering techniques applied to segmenting markets A usuallv require computers to group people based on data from market research B remove the need for managerial judgment C eliminate the need for marketing managers to specify in advance what dimensions might be relevant for grouping consumers D doesn t apply to demographic data E is time consuming and expensive 85 The three basic tasks of ALL managers according to the text are planning staffing and evaluating marketing production and finance execution feedback and control planning implementation and control hiring training and compensating WPOPquot 86 The difference between target marketing and mass marketing is that target marketing A means focusing on a small market B focuses on short run objectives While mass marketing focuses on long run objectives C focuses on speci c customers while mass marketing aims at an entire market D aims at increased sales While mass marketing focuses on increased profits E does not rely on e commerce but mass marketing does 87 When one considers the strategy decisions organized by the four Ps branding is related to packaging as store location is to sales force selection personal selling is to mass sellingz production is to marketing branding is to pricing pricing is to promotion 509 88 Which of the following statements is not true under the Fair Labor Standards gt O H 39N Children ages 16 and 17 may work unlimited hours in nonhazardous jobs Persons age 18 or over may work unlimited hours in nonhazardous jobs Children ages 14 and 15 may work limited hours in nonhazardous jobs Children under 14 cannot work at all except on farms Persons age 18 or over may work unlimited hours in hazardous jobs WPCF 89 Probable cause is most directly associated with which step of the criminal process A Plea bargaining B Arraignment C Indictment D Arrest E Jury deliberations 90 Which of the following statements is generally not true about state intermediate appellate courts A The appellate court allows the parties to make oral arguments outlining their position B The appellate court allows the parties to introduce new evidence so long as it was not previously introduced at the original trial C The appellate court usually allows the parties to file briefs outlining support for their positions D The appellate court reviews the record of the trial court E Appellate court decisions are final and further appeal is not possible 91 Which of the following terms need not be disclosed under TruthinLending Act A The terms available from competitors B The total finance charge C The cash price of the product D The annual percentage rate APR E Amount of payments 92 Which of the following activities by an administrative agency requires public notice and participation Substantive rule making and statements of policy only Statements of policy only Substantive rule making and interpretive rule making only Substantive rule making onlv Substantive rule making interpretive rule making and statements of policy WPCF 93 Which of the following is not one of the Caux Round Table Principles for International Business Promotion of Multiculturalism Respect for the Environment Support for Multilateral Trade Avoidance of Illicit Operations Responsibility of Business Beyond Shareholders Toward Stakeholders EDGE 94 The theory of business social responsibility that holds that a business owes duties solely to produce the highest return for its shareholders is The corporate citizenship theory The moral minimum theory The social audit theory The stakeholder interest theory The maximizing pro ts theory FUDGE 95 Which social responsibility theory has been advocated by Novel Prizewinning economist Milton Friedman Corporate citizenship Maximizing pro ts Corporate social audit Stakeholder interest Moral minimum WUOF 96 Which of the following lists in descending priority of sources considered by most courts in settling questions of international law Conventions treaties comity customs Treaties customs conventions comity Treaties customs conventions comity Conventions comity customs general principles of law Treaties customs general principles of law judicial decisions and teaching eccwgt 97 If the value of the collateral is less than the debt owed to the secured party then A The secured party gets to take some other property as collateral so his entire debt is secured B The secured party is still secured for the entire debt owed him C The secured party is unsecured for the entire debt D The secured party loses the excess of debt over the value of the security E The secured party is unsecured for the excess of debt over the value of the security 98 One study found that manufacturing labor costs about an hour in China compared to dollars in the United States A 2 about 25 B Less than 1 about 15 C Less than 1 about 40 D Less than 1 about 25 E About 2 about 15 99 Which country does the text describe as becoming the largest producer and consumer of many of the world39s goods China Japan Ecuador Mexico Canada mucwgt 100 Although the US has had a longstanding agreement with after the passage of NAFTA became the United States39 second largest trading partner Mexico Venezuela Canada Venezuela Great Britain Paraguay Mexico Canada Canada Mexico Good Luck HonestAbe FUOPquot
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